APTRANSCO has issued new independent Battery Energy Storage System (BESS) tenders to install 1 GW/2 GWh capacity in Andhra Pradesh as part of the new Viability Gap Funding ( VGF ) Scheme. The project will be implemented under the Build-Own-Operate (BOO) model, having the tenure of 12 years of Power Purchase Agreement (PPA).
The capacity of this BESS will be distributed among seven chosen substations of APTRANSCO. The interconnection voltage level is 33 kV, and power evacuation infrastructure up to 33 kV, including bays, will be developed by APTRANSCO. The respective DISCOMs will supply power.
The APTRANSCO will assign the land needed for the projects. The bidders must return the land in good condition within 180 days of the Battery Energy Storage Purchase Agreement (BESPA) expiry. They will run the systems at a C-rate of 0.5C, ensuring the minimum bid capacity at each location equals the project size assigned there. BESS should serve two load-shedding cycles daily, and the DISCOMs should be free to divide the charge/discharge periods.
Requirements
The project requires that at least 95% should be available on an annual basis, whereby shortages will attract a penalty of twice the capacity charges. Round-the-Efficiency (RtE) shall be maintained at a minimum of 85% (ac-ac) and shortages are penalized based on the Average Power Purchase Cost (APPC). A maximum rate of one percent degradation per year is allowed.
The commissioning schedule is 18 months with a 6-month window liable to Liquidated Damages (LD). Early and part commissioning is permitted under normal conditions. VGF will be paid in stages, i.e., 20 percent on Financial Closure, 50 percent on COD, and 30 percent one year after COD.
Different tariffs will be quoted by the bidders depending on the location and financial bids using the e-Reverse auction (e-RA) will take place separately. The final independent bid of AP found the lowest tariff at INR 2.08 lakh/MW/month. The future outcomes will be followed closely considering the increasing BESS prices.
It is the 5th tender under the new VGF scheme, which raises the number to 14 GWh. The market is approaching 20 GWh capacity with the NTPC 5 Gwh EPC tender for Thermal + BESS.
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