Tamil Nadu tenders 1 GWh battery storage with VGF support

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Tamil Nadu Green Energy Corp. Ltd (TNGECL)has invited bids to develop six standalone battery energy storage systems for a cumulative capacity of 1000 MWh (500 MW x 2 hours) with complete two cycle charging/discharging in Tamil Nadu.The BESS will be utilized by state discom Tamil Nadu Power Distribution Corp. Ltd (TNPDCL) on an “on-demand” basis, to meet its requirements during the peak and off-peak hours.

“As per the State Component of viability gap funding (VGF) for development of BESS, VGF of up to 30% of the capital cost for BESS or INR 27 lakh per MWh whichever is lower, shall be provided by the central government under state component. The VGF shall be a non-recurring expenditure and shall be fully funded from central grant,” reads the tender document.

The minimum bid size is 50 MW x 2 hours (100 MWh) and the project size must be quoted in multiples of 50 MW X 2 hours(100 MWh). For typical project size of 50 MW/100 MWh, around 7,000 sqm of land will be allotted to the BESS developer.

The selected BESS developers will set up the BESS on a build-own-operate (BOO) basis. TNPDCL, the end procurer, will enter into a battery energy storage purchase agreement (BESPA) and also arrange for charging of BESS.

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