SECI Invites Bids for 125 MW/500 MWh Battery Storage Project in Kerala

Solar Energy Corporation of India Ltd. (SECI) has issued a Request for Selection (RfS) Document for setting up a 125 MW/500 MWh standalone Battery Energy Storage System (BESS) in Kerala with VGF under tariff-based global competitive bidding (ESS-3). The project will operate under the Build-Own-Operate (BOO) model, aimed at enhancing the State’s energy grid stability and optimising renewable energy use.

The document fee for participating in the bidding process is INR 50,000 (plus GST), and the bid processing fee is INR 20,000 per MW of the quoted capacity, with a maximum fee of INR 20,00,000 (plus GST). The Earnest Money Deposit (EMD) is INR 3,41,000 per MWh of the project, payable via Bank Guarantee. The performance bank guarantee required for the project is INR 8,52,500. The project completion period will be as per the tender document.

The sale of tender documents will end on 4th February 2025. The last date for soft copy bid submission is 4th February 2025, and for hard copy submission, it is 6th February 2025. The bids will be opened on 7th February 2025. A pre-bid meeting will be held on 10th January 2025.

As per the document, the BESS will be set up at the Mylatti 220 kV Substation, located in the Kasaragod district. The primary objective is to facilitate charging and discharging on demand, offering essential grid stability for renewable energy integration. The selected project developer will be responsible for setting up, operating, and maintaining the BESS, ensuring it meets the contracted performance standards as outlined in the RfS document.

According to the scope of work, the bidder will be responsible for setting up the BESS, interconnecting it with the STU network, and ensuring its operation and maintenance throughout the contract period. The project is technology-agnostic, with bidders having the flexibility to choose the battery storage technology that meets the required performance criteria. The BESS can be charged by any energy source, including conventional energy sources. Developers will be expected to meet the capacity specifications outlined in the RfS and ensure that the system is available for use on an 'on-demand' basis.

The 9 acres of land required for the project will be provided by Kerala State Electricity Board Ltd. (KSEBL) on a lease/right-to-use basis for an annual fee of INR 1 per plot. The BESS will be connected to the interconnection points as defined in the RfS. Any extension to the existing infrastructure for the interconnection will be managed by the bidder.

The selection of the BESS Developer will be done through a two-step bidding process, starting with e-bidding followed by an e-Reverse Auction. The evaluation of bids will be based on the tariff offered by the bidders. The successful bidder will be awarded the project and will be responsible for the delivery of the contracted capacity, as outlined in the Battery Energy Storage Purchase Agreement (BESPA). The total contracted capacity will be 125 MW/500 MWh, and no bidder will be allowed to bid for more than one project under this RfS. The project will be allocated based on the lowest bid (L1) tariff offered.

Under this RfS, the VGF amount eligible for the developer will be limited to INR 27 Lakhs/MWh or 30 percent of the capital cost for the BESS, whichever is lower. For a project capacity of 125 MW/500 MWh, the maximum VGF amount to be sanctioned will be INR 135 Crores. The BESS Developer must submit a certificate for the capital cost incurred for the awarded project capacity, certified by Statutory Auditors, within six months of the Commercial Operation Date (COD). If the VGF amount exceeds 30 percent of the certified capital cost, the VGF will be revised to 30 percent, with adjustments or recovery in subsequent tranches. VGF will be sanctioned based on the project capacity defined in the BESPA.

To participate in the bidding process, bidders must meet technical and financial eligibility criteria. The project must use commercially established technologies, with details submitted at bidding and updated at financial closure. Financially, bidders must have a net worth of INR 34.1 lakh per MWh of quoted capacity (e.g., INR 68.2 crore for a 500 MWh project) or demonstrate equivalent financial capacity, such as assets under management for SEBI-registered AIFs. Liquidity must be shown via turnover, internal resources, or a line of credit. Bidders can use the financial capacity of affiliates, subject to specific conditions like equity contribution and shareholding pattern.