Kerala launches 125 MW/500 MWh battery storage tender

NHPC is accepting proposals to set up 125 MW/500 MWh of standalone battery energy storage systems on a build-own-operate basis in Kerala. The projects will be eligible for central financial assistance in the form of viability gap funding.

January 22, 2025 Uma Gupta

Fluence's grid-scale Gridstack storage system

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NHPC Ltd has invited proposals to set up intrastate transmission system (InSTS) connected standalone battery energy storage systems (BESS) for an aggregate storage capacity of 500 MWh (125 MW x 4 hours) in Kerala. It seeks to utilize these energy storage systems, on an “on-demand” basis, to meet evening peak requirements of the buying entity, Kerala State Electricity Board Ltd, with single-cycle charging/discharging operation of the BESS.

The total capacity to be allocated to a bidder is up to 500 MWh in case a bidder chooses to apply for all the four project locations.

NHPC is nominated as a BESS Implementing Agency (BIA) by the Ministry of Power, under the Viability Gap Funding (VGF) scheme for development of battery energy storage systems. BESS developers selected by NHPC will set up the BESS on a build-own-operate (BOO) basis, with their projects being eligible for central financial assistance in the form of viability gap funding (VGF).

NHPC will enter into a battery energy storage purchase agreement (BESPA) with the successful bidders.

“Already commissioned projects cannot be considered under this RfS. Projects under construction or projects which are not yet commissioned will, however, be considered, in case these projects are not already accepted under any other Central or State Schemes,” states the tender document.

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