NHPC Invites Bids for 500MW/1000 MWh BESS Projects in Andhra Pradesh

NHPC Ltd. has invited bids through an e-tendering process for the selection of Battery Energy Storage System (BESS) developers under the Viability Gap Funding (VGF) supported Tariff-Based Competitive Bidding (TBCB)' model (NHPC-Tranche-II-BESS) (2024-25).

The project involves establishing a 500 MW / 1000 MWh Intra-State Transmission System (InSTS) connected standalone BESS in the state of Andhra Pradesh, across three locations. This tender will follow a two-stage bidding process, comprising Part I: Technical Bid and Part II: Financial Bid, along with an e-reverse auction (e-RA). The aggregate storage capacity targeted is 1000 MWh (500 MW x 2 hours), designed to meet peak demand periods with two charging/discharging cycles daily, each lasting two hours.

The objective of this project is to enhance energy storage capabilities, enable the integrated management of renewable energy in the region, improve grid reliability, and optimize the use of renewable resources. The bidding process will follow a single-stage, two-part system, which includes the submission of technical and financial bids. This tender will be conducted through e-tendering and will also involve an e-reverse auction after the initial bidding stage to ensure competitive pricing.

To participate, bidders must register online for the e-tendering process and download the necessary documents. All bids must be submitted exclusively through the CPP portal, as no hard copies will be provided or accepted.

The e-reverse auction will be conducted after the initial e-tendering process for shortlisted bidders. Bidders must demonstrate prior experience and technical expertise in battery energy storage projects, along with financial capability and proficiency in project execution. This initiative reflects NHPC Ltd.’s commitment to advancing energy storage infrastructure and supporting India’s renewable energy transition, aligning with the nation’s goal to increase the share of clean energy in its overall power mix.

NHPC Ltd. is the designated BESS Implementing Agency (BIA) by the Ministry of Power. This initiative aims to bolster grid stability and facilitate the integration of renewable energy, aligning with India's ambitious goal of 500 GW of non-fossil fuel capacity by 2030. Recognising the intermittent nature of renewable sources like solar and wind, NHPC emphasises the crucial role of BESS in ensuring a consistent and reliable power supply.

The selected BESS developers (BESSDs) will be responsible for setting up the projects on a Build-Own-Operate (BOO) basis, covering the project and dedicated transmission network costs up to the interconnection/delivery point. This includes securing all necessary approvals, permits, and clearances from state and local authorities. Bidders can submit bids for one or multiple projects, offering contracted capacity in any combination up to a total of 1000 MWh. 

A non-refundable tender fee of INR 3,54,000 is payable to NHPC Ltd. An Earnest Money Deposit (EMD) of INR 3,41,000 is also required.The bid validity period is 180 days. A pre-bid meeting is scheduled for February 27, 2025. Bids will be opened on March 20, 2025. The tender sale ends on March 17, 2025. Clarifications can be sought between February 14 and February 25, 2025. Bid submission starts on March 5, 2025, and closes on March 17, 2025.

The selection of BESSDs is contingent on confirmation from Andhra Pradesh Distribution Companies (APDISCOMs) regarding power offtake at the discovered tariff. Letters of Award (LOAs) will be issued only after a mutual agreement is reached between NHPC and APDISCOMs. This ensures that the BESS capacity developed aligns with the actual demand and grid integration plans of the distribution companies.

NHPC will then enter into a Battery Energy Storage Purchase Agreement (BESPA) with the successful bidders. APDISCOMs will provide the charging power for the BESS, and they will also off-take 100 percent of the awarded capacity. NHPC acts as an intermediary nodal agency, facilitating the charging and discharging of the BESS in accordance with agreements with the BESSDs and APDISCOMs.

NHPC reserves the right to cancel or withdraw the RfS at any time without assigning any reason and bears no liability for such a decision.