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PSPCL Invites Bids for 500 MW/1 GWh Standalone Battery Storage Capacity

Punjab State Power Corporation Limited (PSPCL) has issued a tender seeking developers for 500 MW/1,000 MWh of standalone battery energy storage systems (BESS) across the state.

The last date for bid submission is February 13, with proposals scheduled to be opened on February 16.

As part of the bidding requirements, participants must provide an earnest money deposit of Rs471,000 ($5,218) per MW and a performance bank guarantee of Rs1.17 million ($12,965) per MW. In lieu of a bank guarantee, bidders may submit a letter of undertaking from Power Finance Corporation or REC, committing to cover any encashed amount. Alternatively, an insurance surety bond issued in line with IRDAI guidelines will also be accepted.

Bidders are also required to pay a bid document fee of Rs50,000 plus GST and a bid processing fee of Rs300,000 plus GST.

Under the tender, developers will be responsible for installing BESS facilities that allow PSPCL to charge and discharge stored energy on demand. The selected bidders must set up 250 MW/500 MWh of storage capacity each at the Ablowal and Laltonkalan substations and connect the systems to the state transmission network at the 220 kV level.

Developers will bear the full cost of transmission infrastructure from the project site to the interconnection point. This includes expenses related to constructing new bays, busbar augmentation or extension, protection relay upgrades, and installation of protection and control panels at PSPCL or Punjab State Transmission Corporation Limited (PSTCL) facilities.

All operation and maintenance costs, along with expenses up to the delivery point, will also be borne by the successful bidders. The BESS units will be charged by drawing power from the PSPCL/PSTCL network and discharged as per dispatch instructions from the State Load Dispatch Centre (SLDC).

The tender mandates the use of an indigenously developed energy management system application. The BESS installations must comply with fire safety norms and ensure noise levels remain below 80 decibels.

PSPCL/PSTCL will provide land for the projects on a lease or right-to-use basis, charging a nominal annual lease fee of Rs1 per acre.

Each system must be designed for two operational cycles per day and be capable of discharging power during any 15-minute time block, as per SLDC schedules. The BESS must maintain a minimum monthly availability of 95% and achieve an AC-to-AC round-trip efficiency of at least 85%, with efficiency declarations submitted on a day-ahead basis.

Operational requirements also include the ability to function within a 47.5 Hz to 52 Hz frequency range and deliver rated output in both charging and discharging modes between 49.5 Hz and 50.5 Hz. The systems must support reactive power control, provide primary frequency response with adjustable droop, and deliver an immediate real-power response of at least 10% of maximum capacity within one second for frequency deviations exceeding 0.3 Hz.

Selected developers will enter into a 12-year Battery Energy Storage Purchase Agreement (BESPA) from the scheduled commissioning date. Auxiliary power must be sourced through a separately metered PSPCL connection or drawn free of charge from the interconnection point using a dedicated meter.

Projects must be commissioned within 18 months of BESPA signing, with a maximum extension of nine months, including liquidated damages. Financial closure must be achieved within six months of signing the agreement. Only commercially proven and operational technologies are permitted.

Financial eligibility criteria require bidders to have a minimum net worth of Rs4.7 million ($52,075) per MW in the previous financial year or at least seven days before bid submission.

Additionally, bidders must meet at least one of the following:

• Annual turnover of Rs5.29 million ($58,626) per MW
• Internal resource generation (PBDIT) of Rs1.05 million ($11,636) per MW
• In-principle credit sanction of Rs1.3 million ($14,401) per MW from a bank or financial institution

Recently, PSPCL also issued a separate request for selection for 250 MW/500 MWh of standalone BESS capacity in Bathinda, Punjab.