BHEL wins battery energy storage system order for Delhi discom-TERI pilot

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State-owned Bharat Heavy Electricals Limited (BHEL) emerged winner in an auction recently conducted by The Energy and Resources Institute (TERI) for installation and maintenance of battery energy storage systems (BESS) at the distribution level in the NCT of Delhi.

BHEL offered 410 KWh of cumulative battery capacity for a total cost of Rs2.51 crore, including six years of comprehensive warranty and maintenance, against the tender which evaluated bids with 70% weightage given to technical parameters.

The tender—open for both Lithium-ion and advanced lead-acid storage providers—received an overwhelming response from companies such as Larsen & Toubro, Mahindra Susten, Hero Solar, Honeywell Automation, Amara Raja and Okaya Power.

“This level of interest from prestigious organisations in the tender signifies the transition of electricity distribution grid with increasing penetration of distributed energy resources supported by stationary battery energy storage technologies”—read a TERI statement.

The tender was floated to meet the BESS requirements of a pilot project by TERI—under the licensee area of BSES Rajdhani Power Limited (BRPL)—to integrate battery energy storage systems at the distribution level.

An important objective of this project is to bridge the gap between smart grid, storage, and renewable energy research and facilitate its subsequent adoption by distribution utilities in their systems through pilots with the joint efforts of the Indo-US consortium.

“These tender results are game changing – they show that it is cost effective for BRPL to add batteries instead of adding transformer capacity in many instances, and for housing societies to use solar-cum-battery systems for electricity supply instead of DG sets. It also shows that if time-of-day tariffs are applicable on year-on-year basis, then batteries, along with solar rooftop, are a cost-effective way of minimising electricity cost,” said TERI Director General Dr Ajay Mathur.

“We are delighted that BHEL has come out as the best supplier of battery and associated equipment in this tender. Most of the systems and components are domestically manufactured, and this tender suggests that there is a large potential of growth of this domestic industry,” added Senior Fellow & Senior Director-Electricity & Fuels Division, A.K. Saxena.