Bengaluru-based Pace Digitek has secured a major contract worth Rs 11.6 billion (including GST) from the Solar Energy Corporation of India (SECI) for a 600 MW/1,200 MWh Battery Energy Storage System (BESS). The agreement also includes 10 years of service and maintenance for the DC package.

The tender for this project was floated in August, with winners announced two months later. The project, located in Kolimigundla, Nandyal district, Andhra Pradesh, aims to boost grid stability and support renewable energy integration under a market-based operation model.

Detailed project scope

Under the BESS contract, Pace Digitek will handle the design and engineering of the complete system and all associated components. The company will supply BESS DC Blocks fitted with HVAC and fire protection systems, Power Conversion Systems (PCS), Battery Management Systems (BMS), and Energy Management Systems (EMS).

It will also integrate the BMS and EMS with PCS, manage cabling, conduct testing and commissioning of the system, and oversee trial operations and performance demonstration. Comprehensive maintenance for 10 years from commissioning is part of the agreement.

Implementation timeline

According to the contract terms, 50 per cent of the BESS capacity must be supplied within 11 months, with full capacity delivered within 13 months of the contract’s effective date.

Subsequently, testing and commissioning will follow. In collaboration with SECI or its authorised AC package contractor, half the capacity will be commissioned within 14 months, and the entire system within 16 months from contract initiation.

Policy and funding framework

The project is being implemented under the “Operational Guidelines for Tranche-2 of the Market Component of the Scheme for Viability Gap Funding for the Development of Battery Energy Storage Systems”, issued by the Ministry of New and Renewable Energy (MNRE).

Pace Digitek is required to furnish a Contract Performance Guarantee (CPG) equal to 10 per cent of the contract value within 20 days of receiving the Notice of Award (NoA).

The BESS will connect to the Kurnool-3 substation of the Inter-State Transmission System (ISTS) and includes a 15-year maintenance contract from the commissioning date.

Supporting Andhra Pradesh’s clean energy vision

The tender aligns with Andhra Pradesh’s Integrated Clean Energy Policy 2024, which targets the addition of over 160 GW of renewable capacity and around 25 GWh of battery storage through various deployment models. The initiative aims to position the state as India’s “storage capital”, accelerating the country’s transition towards sustainable, reliable, and clean energy infrastructure.