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PSPCL Floats Tender for 500 MW/1,000 MWh Standalone Battery Storage Projects in Punjab

Punjab State Power Corporation Limited (PSPCL) has issued a tender inviting bids for the development of 500 MW/1,000 MWh of standalone battery energy storage system (BESS) projects across Punjab. The projects will be implemented under the build-own-operate (BOO) model.

As per the tender conditions, the BESS facilities will be connected to the state transmission utility (STU) network at two locations—Ablowal substation in Patiala and Laltonkalan substation in Ludhiana. Each site will host storage capacity of 250 MW/500 MWh.

Interested bidders are required to purchase the bid document by paying Rs 59,000 and submit a bid processing fee of Rs 3 lakh plus GST. In addition, an earnest money deposit (EMD) of Rs 4.71 lakh per MW must be furnished. Successful bidders will be required to provide a performance bank guarantee (PBG) of Rs 11.775 lakh per MW before signing the Battery Energy Storage Purchase Agreement (BESPA).

The deadline for bid submission is February 13, 2026, while the techno-commercial bids are scheduled to be opened on February 16, 2026. The minimum project size eligible for bidding is 100 MWh, equivalent to 50 MW with a two-hour duration, with subsequent bid increments set at a minimum of 50 MW.

PSPCL will enter into a 12-year BESPA with the selected developers. Under the agreement, the BESS assets will be made available to PSPCL on an on-demand basis for charging and discharging operations. The charging and dispatch schedule of the storage systems will remain under the control of PSPCL.

The BESS facilities will be charged by drawing power from the PSPCL or PSTCL network and will discharge energy back into the same network. Land for project development will be provided to the BESS developers on a lease or right-to-use basis through an agreement with PSPCL or PSTCL.

Developers will be required to ensure the availability of the BESS for at least two operational cycles per day and maintain a minimum monthly system availability of 95 percent. The energy management system (EMS) software must be developed indigenously within India, and the installed storage systems must comply with prescribed quality standards and industry best practices. The use of refurbished or second-hand battery cells has been expressly prohibited.

Noise emissions from the BESS installations must not exceed 80 decibels. Considering the potential development of residential areas near the project sites, developers will be required to install suitable noise mitigation measures, including sound barriers, in accordance with the tender specifications.

On the financial eligibility front, bidders must demonstrate a minimum net worth of Rs 47.10 lakh per MW as of the end of FY25, or at least seven days prior to the bid submission date. They must also meet minimum turnover requirements of Rs 52.92 lakh per MW during FY25. Alternatively, bidders can qualify by showcasing internal resource generation through Profit Before Depreciation, Interest and Taxes (PBDIT) of at least Rs 10.584 lakh per MW, or by submitting an in-principle sanction letter from banks or financial institutions committing a credit line of at least Rs 13.23 lakh per MW to meet working capital needs.