Punjab State Power Corporation Limited (PSPCL) has launched a major initiative to develop standalone Battery Energy Storage Systems (BESS) in the state. The utility has issued a Notice Inviting Tender (RfS No. 58) for the selection of bidders to establish a 250 MW/500 MWh BESS project. This effort is being carried out under a tariff-based global competitive bidding process and is supported by Viability Gap Funding from the Power System Development Fund (PSDF). The project is aimed at enhancing grid stability, supporting renewable energy integration, and meeting increasing electricity demand in Punjab.
The tender documents were made available for download on January 13, 2026, marking the official start of the project, referred to as the “zero date.” Interested organizations must follow a multi-stage submission process to participate in the bidding. A pre-bid conference was also organized, and companies needed to register by January 27, 2026. This date was also the deadline for submitting technical queries related to the project.
PSPCL has set clear deadlines for all stages of the tender process. The bid submission deadline is February 13, 2026, at 3:00 pm. Technical bids will be opened on February 16, 2026, at 11:00 am, while financial bids will be opened later on March 16, 2026, at 11:00 am. The bids submitted will remain valid for one year, until February 13, 2027.
Bidders are required to meet certain financial obligations to qualify for the project. The Earnest Money Deposit (EMD) is set at INR 4,71,000 per MW, which can be submitted via Bank Guarantee, Pay Order, or Insurance Surety Bond. In addition, a Performance Bank Guarantee (PBG) of INR 11,77,500 per MW must be provided. The cost of the RfS document is INR 50,000 plus applicable GST, and a bid processing fee of INR 3,00,000 plus GST is also required.
All bids must be submitted online through the Bharat Electronic Tender portal. However, physical copies of the EMD must also be submitted to the PSPCL office in Patiala within two working days after the closing of the bid. This ensures that all financial and procedural requirements are properly met.
This tender represents a significant step for Punjab in advancing its energy storage capacity and supporting the integration of renewable energy. The establishment of a 250 MW/500 MWh standalone BESS will not only help in stabilizing the grid but also provide opportunities for private sector participation in India’s growing clean energy sector. By adopting a structured and transparent bidding process, PSPCL aims to attract competent bidders and implement the project efficiently. The use of Viability Gap Funding indicates government support to make the project financially viable while encouraging innovation and competition among developers.
The Punjab BESS project is part of a larger national push towards renewable energy integration and energy storage solutions, reflecting India’s commitment to a reliable and sustainable power infrastructure.
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