Andhra Pradesh launches 500 MW/1,000 MWh battery storage tender

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NHPC Ltd has launched a tender for selection of developers to set up standalone battery energy storage systems (BESS) for an aggregate capacity of 1000 MWh ((500 MW x 2 hours) under the viability gap funding (VGF) scheme in Andhra Pradesh. The BESS, connected to the state transmission system, will meet morning and evening peak power requirements of the buying entity (Andhra Pradesh power distribution companies) with two-cycle charging/discharging operation (two hours per cycle) each day. The charging power shall be provided by the buying entity.

NHPC Ltd has been nominated as BESS implementing agency by the Ministry of Power, Government of India, under the VGF scheme. On behalf of Andhra Pradesh power discoms, it will enter into a battery energy storage purchase agreement with the successful bidders for availing the energy storage facility on an on-demand basis.

‘NHPC shall be an intermediary nodal agency for using the energy storage facility and charging/discharging the BESS in line with respective agreements with the BESS developer and the buying entity (Andhra Pradesh power discoms), based on due performance by the concerned parties,” reads the tender document. “Projects selected under this RfS shall be eligible for grant of central financial assistance in the form of viability gap funding.”

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