The Solar Energy Corporation of India (SECI) has issued a 1,000 MW / 8,000 MWh pumped storage project (PSP-I) tender under the Build-Own-Operate (BOO) model, with an eight-hour storage capacity. The tender is open for submissions until February 9, 2026.
Through this tender, SECI requires the Pumped Storage Plant Developer (PSPD) to make the storage facility available to Buying Entities for charging and discharging on an “on-demand” basis. Bidders, including their parent, affiliate, or group companies, can submit projects ranging from 100 MW/800 MWh to 1,000 MW/8,000 MWh. Projects can be developed at sites chosen by the bidder at their own cost and risk.
The tender supports the government’s push to expand pumped storage projects (PSPs). The Ministry of Power has identified around 224 GW of pumped storage potential in India. To date, 10 projects totaling ~7 GW have been commissioned, another 10 projects (~12 GW) are under construction, and 56 projects (~78 GW) are at various planning stages. The 1,680 MW Pinnapuram PSP and 500 MW Tehri PSP are expected to be commissioned during 2025–26.
Scope of Work
Bidders must declare the Monthly Cycle Loss (MCL), expected to be below 25%, and the Declared Cycle Loss (DCL), which will remain fixed for the PPA term. For example, for a 250 MW contracted capacity, the offtaker is entitled to schedule 2,000 MWh per cycle, with charging adjusted for system losses based on the DCL.
The PSPD is required to support a maximum of two charge-discharge cycles per day and maintain a minimum 90% system availability annually. Any shortfall will attract a penalty of 1.5 times the Monthly Capacity Charges (INR/MW/month), payable to SECI, which will remit it to the Buying Entities.
The RfS follows the tariff-based global competitive bidding process, ensuring the projects are connected to the national grid. Developers can also avail accelerated depreciation and tax incentives, where applicable.
By launching this tender, SECI aims to catalyze investments in long-duration energy storage, enhance grid flexibility, and support India’s increasing renewable energy integration, while reducing reliance on coal during evening peak hours.
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