Telangana Power Generation Corporation Limited (TGGENCO) has issued a tender for establishing a 250 MW/500 MWh standalone Battery Energy Storage System (BESS) in Telangana. This project, part of a global competitive bidding process, aims to develop energy storage solutions under a Build, Own, and Operate (BOO) model. The project is supported through Central Financial Assistance under the Viability Gap Funding (VGF) scheme, allowing developers to access financial support of INR 27 Lakhs per MWh or 30% of the capital cost, whichever is lower.
The tender document outlines the terms for selecting developers to implement the BESS project. The total capacity offered is 500 MWh, with a minimum bid size set at 100 MWh. The storage systems will provide energy on demand, ensuring flexibility and reliability for the state’s power grid. The selected developers must set up the infrastructure and ensure grid integration while adhering to all regulatory and technical requirements. TGGENCO will facilitate the project by providing land through sublease agreements at zero cost, which will reduce the burden on developers.
Developers are required to comply with specific financial and operational criteria to participate in the bidding process. A document fee of ₹29,500 plus GST and a processing fee of ₹10,000 per MW (capped at ₹10,00,000 plus GST) are mandatory. Additionally, bidders must submit an Earnest Money Deposit (EMD) of ₹4,32,000 per MW in the form of a bank guarantee. Successful bidders will also be required to furnish a Performance Bank Guarantee (PBG) valued at ₹10,80,000 per MW before signing the Battery Energy Storage Purchase Agreement (BESPA). The project must demonstrate a minimum annual availability of 95% and maintain a round-trip efficiency of 85% to ensure its operational viability.
The tender provides specific timelines and milestones for the project. The RfS was issued on January 22, 2025, and potential bidders must submit their queries by February 6, 2025. A pre-bid meeting is scheduled for February 10, 2025, to address any clarifications. The deadline for bid submission is specified in the Notice Inviting Tender on the Bharat ISN-ETS portal. Once selected, developers must commission the project within 18 months from the agreement’s effective date. Extensions may be granted if delays arise from circumstances beyond the developer’s control, such as infrastructure readiness.
The BESS project is designed to enhance Telangana’s energy infrastructure by providing reliable energy storage solutions that integrate seamlessly with renewable energy sources. The system will ensure better grid stability and address supply-demand mismatches. Developers are encouraged to review the detailed terms and conditions in the RfS document below and submit their bids in compliance with the stipulated requirements.
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