NTPC Renewable Energy Limited (NTPC REL) has invited international competitive bids for procuring up to 2,000 MW/12,000 MWh of Interstate Transmission System (ISTS)-connected Pumped Hydro Energy Storage (PHES) capacity across India under a service model. The tender, identified as IFB No. NRE-CS-2026-27-0000-SER-1, is aimed at strengthening NTPC REL’s ability to supply round-the-clock (RTC) renewable power by integrating energy storage with its solar and wind generation portfolio.
Under the proposed arrangement, NTPC REL will provide charging power from its renewable energy assets, while the selected PHES developers will be responsible for operating and maintaining the storage facilities on an “On-Demand” basis. Successful bidders will enter into an Energy Storage Service Agreement (ESSA) with NTPC REL for a period of 25 years. Payments will be made through an annual fixed charge based on the financial bids submitted by developers.
The tender requires a mandatory minimum capacity of 500 MW/3,000 MWh at a single location. The PHES facilities must be capable of providing at least six hours of single-cycle discharge, enabling the stored renewable energy to be supplied during periods of high demand or low renewable generation.
NTPC REL has opened the tender to a wide range of projects. Already commissioned PHES facilities, under-construction projects with approved Detailed Project Reports (DPRs) and required government clearances, new greenfield projects, and augmentation of existing facilities are eligible to participate.
Developers will be required to make their storage systems available for operation within 48 months, or four years, from the signing of the ESSA. The ESSA must be executed within three months from the issuance of the Letter of Award (LoA). The successful bidders will also be responsible for establishing connectivity and transmission infrastructure up to the ISTS substation. Metering will be carried out at the ISTS interconnection point.
Capacity allocation will follow a “Bucket Filling” methodology based on the financial tariffs quoted by bidders in INR per MWh per year. The bidding process will use a Single-Stage Two-Envelope procedure, followed by an online reverse auction.
The IFB was issued on October 5, 2026. Bidding documents can be downloaded until October 19, while the pre-bid conference and last date for queries are scheduled for October 22. Technical and financial bids must be submitted by 3:00 PM on November 3, 2026, with technical bids scheduled to open at 3:30 PM the same day. The reverse auction date will be announced separately.
Bidders must submit an Earnest Money Deposit (EMD) of INR 10 lakh per MW. For the minimum 500 MW bid, this translates to an EMD of INR 50 crore. Registered Micro and Small Enterprises (MSEs) holding valid UDYAM registration, including eligible MSE-only consortiums, can receive complete EMD exemption.
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