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TGGENCO Seeks 2 GW of Pumped Hydro Storage Capacity Under Firm Dispatch Framework

The Telangana Power Generation Corporation Limited (TGGENCO) has issued a tender to procure 2,000 MW of pumped hydro energy storage capacity under a firm-dispatchable storage arrangement, as part of the state’s efforts to strengthen grid flexibility and reliability.

The tender allows pumped hydro storage projects to be located anywhere in India, provided each project site offers a minimum installed capacity of 500 MW. Bids must be submitted by January 19, 2026, with bid opening scheduled for January 27, 2026.

Interested bidders are required to submit an earnest money deposit of Rs 500,000, along with a tender document fee and bid processing fee of Rs 10,000 each. Successful bidders must furnish a performance bank guarantee of Rs 700,000.

Under the scope of work, selected developers will be responsible for building, owning, operating, and maintaining the pumped hydro storage facilities. They will also enter into a pumped hydro storage purchase agreement with the procurer for a period of five years, corresponding to the operations and maintenance tenure.

The storage capacity must be sourced exclusively from existing, commissioned, and grid-connected pumped hydro storage projects. The tender specifies a daily discharge requirement of eight hours, with a maximum continuous discharge duration of six hours. Projects must be capable of delivering power up to the contracted capacity at the interconnection point.

Charging energy required for the storage cycle will be supplied by the Telangana distribution companies up to the declared cycle loss. Projects must maintain a minimum annual availability of 95%. Bidders are required to declare cycle losses, capped at 25%, while the overall round-trip efficiency of the pumped hydro system must be at least 75%.

Grid connectivity will be provided at interstate transmission system substations at voltage levels of 765 kV, 400 kV, 220 kV, or 132 kV, as applicable. The metering point will be located at the ISTS delivery interface with the central transmission utility.

Eligibility criteria require bidders to have commissioned pumped hydro storage capacity at least twice the capacity being quoted and to have operated such capacity for a minimum period of one year. Financial requirements include a minimum net worth of Rs 5 million per MW of quoted capacity and an annual turnover of at least Rs 10 million per MW. For alternative investment funds, assets under management must be at least Rs 15 million per MW.

Bidders must also demonstrate liquidity through an annual turnover of Rs 10 million per MW for FY 2024–25 or as on a date not more than seven days prior to bid submission, excluding non-operational income. For instance, a bidder quoting 500 MW would be required to show an annual turnover of Rs 5 billion.

Earlier this year, TGGENCO had invited bids for 375 MW/1,500 MWh of standalone battery energy storage systems in November, and issued a separate tender in October for preparing detailed project reports for solar projects totaling 57 MW.