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NTPC Green, Tata Power Win Big in Kerala’s 125 MW/500 MWh BESS Auction

NHPC’s recent auction for a 125 MW/500 MWh standalone Battery Energy Storage System (BESS) connected to Kerala's Intra-State Transmission System (InSTS) has identified NTPC Green Energy as the lowest (L1) bidder, offering a tariff of Rs4.34 lakh/MW/month. NTPC Green secured 40 MW/160 MWh at the Sreekantapuram substation and another 40 MW/160 MWh at Pothencode at a slightly higher tariff of Rs4.57 lakh/MW/month.

Tata Power Renewable Energy emerged successful for 30 MW/120 MWh at the Areacode substation with a bid of Rs4.38 lakh/MW/month. Opera Energy also won 15 MW/60 MWh at the Mulleria substation at the same rate as Tata Power.

The tender, floated in January 2025, mandates that all BESS units operate for at least one cycle per day, maintain a system availability of 95% per month, and deliver a monthly roundtrip AC-to-AC efficiency of at least 85%. Furthermore, only proven and operational technologies must be used to mitigate technology risks and ensure timely commissioning.

Successful bidders are also eligible for Viability Gap Funding (VGF) of Rs27 lakh/MWh or up to 30% of the capital cost—whichever is lower—providing financial support to make these projects commercially feasible. This auction marks a key milestone in Kerala’s transition toward energy resilience.