NTPC REL Floats 2,000 MW Hydro Storage Tender

NTPC Renewable Energy Limited (NTPC REL) has invited bids to set up 2,000 MW/12,000 MWh of pumped hydro energy storage capacity under a service-based model. The company plans to use the storage capacity to support its round-the-clock renewable energy supply by combining it with power generated from its wind and solar projects.

The tender, issued on May 29, 2026, seeks developers for Inter-State Transmission System (ISTS)-connected pumped hydro energy storage projects anywhere in India. NTPC REL has specified that each project location must have a minimum capacity of 500 MW. Bidders can quote capacities above 500 MW up to the total requirement of 2,000 MW.

NTPC REL wants Storage Services for 25 Years

Under the proposed model, developers will provide energy storage services to NTPC REL for a period of 25 years. After the bidding process is completed, the selected developers will sign an Energy Storage Service Agreement with the company on an annual fixed-charge basis.

NTPC REL said power generated from its own renewable energy projects will be used for charging the pumped hydro storage facilities. The stored energy will then be available to the company whenever required, helping it meet electricity demand during both peak and off-peak hours.

The tender follows a PHES-as-a-Service approach, where developers will build, own, operate and maintain the storage projects while NTPC REL will use the storage capacity as a service.

Capacity and Project Requirements

The tender requires a minimum project size of 500 MW at a single location. Each project must be capable of providing six hours of continuous discharge. Based on this requirement, a 500 MW project would provide 3,000 MWh of storage capacity.

Developers can bid for capacities higher than 500 MW, subject to the overall tender capacity of 2,000 MW and 12,000 MWh.

NTPC REL has also allowed different stages of projects to participate in the bidding process. Already commissioned projects, projects under construction and new projects can all be considered under the tender. NTPC REL will conduct the selection process through a Single Stage Two Envelope bidding route. Bidders will be required to submit a techno-commercial bid and a separate price bid. The tender will be processed through an online competitive bidding process, followed by a reverse auction for eligible bidders.

However, projects that are still under construction or yet to be commissioned must already have all required statutory clearances in place. The Detailed Project Report (DPR) for such projects must also have been approved by the designated government authorities.

The tender also allows capacity expansion or augmentation of existing pumped hydro projects, provided the necessary approvals have been obtained.

Location and Connectivity Conditions

Developers are free to propose project locations anywhere in India. The projects must be connected to the Inter-State Transmission System. The responsibility for connectivity and transmission infrastructure up to the ISTS substation will remain with the developer. This means bidders will have to develop and arrange the required transmission facilities up to the designated interconnection point.

Charging power for the storage projects will be supplied by NTPC REL from its renewable energy portfolio. Metering will be carried out at the interconnection point with the ISTS substation. The metering data will be used for efficiency calculations and for determining any liquidated damages, if applicable. The operation and maintenance of the pumped hydro storage facilities will remain entirely under the scope of the selected developers.

Bidding Process and Timeline

The capacity will be allocated through a bucket-filling methodology. Bidders will quote tariffs on an “INR per MWh per year” basis. NTPC REL plans to conduct the selection process through online bidding followed by a reverse auction.

According to the tender conditions, the selected developers will be required to make the storage capacity available within 48 months from the signing of the Energy Storage Service Agreement.

The agreement itself is expected to be signed within three months from the issuance of the Letter of Award. Interested developers can submit bids until July 21, 2026.

The Hydro tender forms part of NTPC REL efforts to secure long-duration energy storage capacity for supporting renewable energy supply. With a total requirement of 2,000 MW and 12,000 MWh, it is among the larger pumped hydro storage service tenders announced in the country. The bidding process will determine developers who can provide the required storage capacity for the next 25 years.