Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

NVVN Floats Tender for 250 MW/1,000 MWh Standalone Battery Energy Storage System

NTPC Vidyut Vyapar Nigam (NVVN) has invited bids for the development of a 250 MW/1,000 MWh standalone battery energy storage system (BESS) under the build-own-operate model. The project will be connected to the interstate transmission system (ISTS) and developed with viability gap funding (VGF), along with a greenshoe option allowing additional capacity of up to 250 MW/1,000 MWh.

The selected BESS will supply energy to NVVN on an on-demand basis, catering to peak and off-peak hour requirements. The deadline for bid submission is March 24, 2025, with bid opening scheduled for March 25.

Interested bidders must submit an EMD of Rs 14 lakh along with a tender document fee of Rs 22,500. Additionally, a tender processing fee of Rs 0.15 crore plus 18% GST is applicable.

The project entails setting up the BESS, ensuring charging power with a single cycle charge/discharge operation, and establishing connectivity with ISTS substations across India. While renewable energy sources are preferred for charging, other sources may supplement the power supply as needed.

The system must provide a minimum of four hours of discharge capacity, and developers must ensure at least 95% monthly system availability. In the event NVVN is unable to offtake the power, it will compensate developers with 52.88% of the discovered composite energy tariff for the difference between generated and scheduled energy.

The minimum bid size is 200 MWh (50 MW x 4 hours), while the maximum is 500 MWh (125 MW x 4 hours). NVVN may allocate additional capacity up to 250 MW/1,000 MWh under the greenshoe option.

Commissioned projects are not eligible under this tender, though projects under construction or awaiting commissioning may qualify if they are not already part of other central or state programs. Developers are responsible for securing ISTS connectivity.

A system availability shortfall will result in liquidated damages equivalent to twice the composite discharge value. The VGF support per selected bidder is capped at Rs 27 lakh per MWh or 30% of the awarded capacity’s capital cost, whichever is lower.

The tender introduces subtle refinements, signaling India’s commitment to accelerating its energy storage deployment and optimizing market structures for standalone BESS projects.