The NTPC Vidyut Vyapar Nigam Limited (NVVN), a subsidiary of NTPC Limited, has issued a Request for Selection (RfS) for the development of a 250 MW/1000 MWh standalone Battery Energy Storage System (BESS) in India under a tariff-based competitive bidding process. The project aims to support India’s renewable energy goals and will be implemented with Viability Gap Funding (VGF). The selected developers will sign a Battery Energy Discharge Purchase Agreement (BEDPA) with NVVN, ensuring the supply of stored energy on demand.
The bidding process follows a single-stage, two-envelope system. The document fee for participation is ₹22,500, while the bid processing fee is ₹15 lakh plus 18% GST. To qualify, bidders must submit an Earnest Money Deposit (EMD) of ₹14,52,000 per MW in the form of a bank guarantee. Upon selection, developers must provide a Performance Bank Guarantee (PBG) of ₹36,32,000 per MW before signing the BEDPA. The bid submission end date is 24th March 2025.
The minimum project size for bidding is 50 MW/200 MWh, and the maximum is 125 MW/500 MWh. The project must be set up under the Build, Own, and Operate (BOO) model, with developers responsible for obtaining necessary approvals and setting up connectivity with the Inter-State Transmission System (ISTS). The projects can be located anywhere in India, provided they are connected to ISTS substations.
The scheduled commissioning date (SCD) for projects up to 250 MW is 18 months from the BEDPA’s effective date. In case of delays, penalties apply, including encashment of the PBG on a per-day basis proportional to the uncommissioned capacity. If a project is delayed beyond six months from the SCD, the contract for the uncommissioned capacity will be terminated.
Viability Gap Funding of ₹27 lakh per MWh or 30% of the project’s capital cost, whichever is lower, will be provided in five tranches. The first 10% is given upon financial closure, 45% on achieving commercial operation, and the remaining in three annual installments. Developers must provide bank guarantees equal to the VGF amount received, which will be retained for five years from commissioning.
The project aims to enhance renewable energy integration into the grid by storing excess energy and supplying it during peak demand. NVVN will procure the discharged energy through power exchanges, bilateral agreements with discoms, or ancillary services. Developers must ensure at least 95% system availability monthly, with penalties applicable for non-compliance.
The RfS also mandates compliance with the Central Electricity Authority (CEA) and the Central Electricity Regulatory Commission (CERC) regulations. Developers must arrange charging power, preferably from renewable sources, and cover all costs related to grid connectivity and maintenance. The initiative aligns with India’s target of 500 GW of non-fossil fuel-based capacity by 2030 and aims to improve grid stability and energy security.
