Punjab State Power Corporation Limited (PSPCL) has issued a tender inviting bids for the development of 500 MW / 1,000 MWh standalone Battery Energy Storage Systems (BESS) to strengthen grid reliability and manage peak demand across the state.
The projects will be implemented under a Build-Own-Operate (BOO) model, with storage assets deployed at two identified substations in Punjab.
Key Tender Details
- Procuring Entity: Punjab State Power Corporation Limited (PSPCL)
- Project Type: Standalone Battery Energy Storage Systems (BESS)
- Total Capacity: 500 MW / 1,000 MWh
Project Locations & Capacity Split
Ablowal Substation, Patiala:
250 MW / 500 MWh
Laltonkalan Substation, Ludhiana:
250 MW / 500 MWh
Tender Model & Scope
- Development Model: Build-Own-Operate (BOO)
- Contract Structure: Long-term Battery Energy Storage Purchase Agreement (BESPA)
- Grid Connection: State Transmission Utility (STU) network
- Dispatch Control: PSPCL will control charging and discharging operations based on grid requirements
Technical Requirements
- Minimum System Availability: 95%
- Operational Cycles: Up to two cycles per day
- Battery Cells: Only new battery cells permitted; refurbished or second-life cells are not allowed
- Energy Management System (EMS): India-developed EMS software mandatory
- Noise Limits: Compliance with prescribed noise standards (<80 dB)
- Land: To be provided on lease / right-to-use basis
Bid Size & Participation Criteria
- Minimum Bid Size: 100 MWh
- Incremental Capacity: 50 MW blocks
Multiple bids permitted subject to tender conditions
Financial Requirements
- Bid Document Fee: ~₹59,000
- Bid Processing Fee: ₹3 lakh + GST
- Earnest Money Deposit (EMD): ~₹4.71 lakh per MW
- Performance Bank Guarantee (PBG): ~₹11.775 lakh per MW (as applicable before BESPA signing)
Important Dates
- Bid Submission Deadline: 13 February 2026
- Techno-Commercial Bid Opening: 16 February 2026
Why This Tender Is Significant
- One of the largest standalone BESS tenders floated by a state discom
- Supports peak load management, frequency regulation, and renewable integration
- Aligns with India’s broader push to scale grid-level energy storage infrastructure
- Strengthens Punjab’s grid flexibility ahead of rising renewable penetration
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