Andhra Pradesh Power Coordination Committee (APPCC) has invited bids to develop 1,250 MW / 5,000 MWh of standalone battery energy storage systems (BESS) across three locations in Andhra Pradesh. The projects will be developed under the Build-Own-Operate (BOO) model through tariff-based competitive bidding, with each project evaluated and awarded separately.
The tender, issued on 7 October 2026, is being conducted on behalf of the state’s three distribution companies: Andhra Pradesh Central Power Distribution Company Limited (APCPDCL), Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) and Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL). The systems will be used by the distribution companies on an on-demand basis.
Three Project Locations Identified
The 1,250 MW / 5,000 MWh capacity is divided across three sites:
| Project location | Capacity | Grid connection |
| Rayalaseema Thermal Power Plant (RTPP), Muddanur | 500 MW / 2,000 MWh | 400 kV substation |
| Talaricheruvu Renewable Energy (RE) Project | 250 MW / 1,000 MWh | 220 kV pooling substation |
| NP Kunta Renewable Energy Project | 500 MW / 2,000 MWh | 220 kV substation |
| Total | 1,250 MW / 5,000 MWh |
The selected developers will be responsible for developing the battery storage systems and the required power evacuation infrastructure up to the designated grid interconnection points, including associated bays. Each project must be connected at its specified substation.
Contract Period and Commissioning Timeline
The Battery Energy Storage Purchase Agreement (BESPA) will run for 12 years, starting from the Scheduled Commissioning Date or the date of full commissioning, whichever is later.
The scheduled commissioning timeline is 24 months from the effective date of the BESPA for the RTPP and NP Kunta projects. For the Talaricheruvu project, the timeline is 18 months.
The systems must be capable of operating for up to two charge-discharge cycles per day, subject to a maximum of 485 cycles per contract year for each block. The tender specifies a minimum AC-to-AC round-trip efficiency guarantee of 85% and an annual system availability requirement linked to the tender’s performance provisions.
Land and Developer Responsibilities
APPCC and the distribution utilities will identify and allocate land to the selected developers through a Right-of-Use (RoU) arrangement. The land will be provided at an annual charge of ₹1 per acre. The identified land is to be handed over within 60 days of the effective date of the BESPA.
Developers must assess site suitability before bidding and obtain the required approvals and grid connectivity. They will also be responsible for project design, installation, operation, maintenance and safety measures, including fire protection systems. The tender requires fire hydrants, suitable fire barriers and thermal and surveillance cameras in the battery container area.
The tender does not permit merchant capacity: the full contracted project capacity is intended for use by the state distribution companies.
Bid Fees, Guarantees and Key Dates
The tender sets out the following financial and submission requirements:
- Tender document fee: ₹3 lakh plus 18% GST, non-refundable.
- Earnest Money Deposit (EMD): ₹5 lakh per MW.
- Performance Bank Guarantee (PBG): ₹10 lakh per MW, to be submitted before signing the BESPA.
- Pre-bid meeting: 22 October 2026 at 11:00 AM.
- Deadline for pre-bid queries: 22 October 2026 at 5:00 PM.
- Last date for bid submission: 23 November 2026 at 5:00 PM.
- Technical bid opening: 24 November 2026 at 3:00 PM.
Bidding will follow a single-stage, two-envelope process covering technical and financial bids, followed by an e-reverse auction for each project. Bidders may quote different tariffs for different locations, and the financial evaluation and reverse auction will be conducted separately for each location.
APPCC may also exercise a green-shoe option to procure additional capacity of up to 25% of the specified capacity, subject to the tender’s conditions, including land availability, grid connectivity and regulatory approvals.
The Andhra Pradesh tender provides another opportunity for BESS developers to participate in Andhra Pradesh’s expanding energy storage programme, with the state seeking dispatchable storage capacity to support on-demand electricity requirements.
| Last Date | 23/11/2026 |
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