TERI Invites bids for 20 MW/40 MWh battery energy storage in Delhi
POWER & RENEWABLE ENERGY

TERI Invites bids for 20 MW/40 MWh battery energy storage in Delhi

"BSES Rajdhani Power (BRPL) plans to deploy a 20 MW/40 MWh Battery Energy Storage System (BESS) in Delhi, and The Energy and Research Institute (TERI) has initiated a competitive bidding process to find the right partner for the project. The bidding process comes with specific requirements and financial commitments. Here's what you need to know."

In its efforts to enhance power infrastructure, BSES Rajdhani Power (BRPL) is gearing up to implement a 20 MW/40 MWh Battery Energy Storage System (BESS) in Delhi. To make this a reality, BRPL has engaged The Energy and Research Institute (TERI) to oversee the selection of suitable bidders through a tariff-based competitive bidding process.

Bidders interested in taking on this project have until September 22, 2023, to submit their proposals. The bids will then be opened on September 29, marking a significant step toward advancing energy storage capabilities in the region.

The scope of work for the selected bidder encompasses a wide range of responsibilities, including site survey, planning, design, engineering, transportation, supply, installation, commissioning, and maintenance of the BESS for a period of 12 years. This comprehensive approach aims to ensure the successful integration of the BESS into the local power grid.

In terms of financial requirements, bidders must provide an earnest money deposit (EMD) of ₹15 million (~$180,559) and furnish a performance bank guarantee (PBG) equivalent to 7.5% of the capital expenditure of the project cost. The contractual period is expected to span from the signing of the Battery Energy Storage Service agreement (BESSA) until 12 years after the commercial operation date.

Bidders should also be prepared to contribute 30% of the project's total capital investment as equity. While the developer can explore partnerships with commercial investors to secure this investment, the remaining 70% of the capital investment is expected to be financed at a concessional rate of 1% of the cost of capital.

It's worth noting that the Delhi Electricity Regulatory Commission (DERC) has already granted in-principal approval for the project. BRPL has identified potential project sites within their authorised zone in Delhi and will make a final selection from these options.

Eligible bidders must have a track record of commissioning battery energy storage systems connected to the grid, with a minimum capacity of 1 MWh, either in India or globally, within the last five years. Additionally, they must possess a valid type test report for the battery conducted at accredited institutions, such as the Central Power Research Institute (CPRI) or Electrical Research and Development Association (ERDA), within the last five years.

The financial requirement for bidders is a minimum net worth of ₹350 million (~$4.2 million) as of the last day of the preceding financial year.

The selected developer will play a crucial role in setting up the BESS, connecting it to the distribution grid, and maintaining its operations. They will be responsible for ensuring that the BESS efficiently charges and discharges energy in line with the utility's requirements for the contracted capacity.

Upon the completion of the BESSA term, the project will be transferred to the utility with specified energy throughput, adhering to the BESSA provisions.

This initiative aligns with the Ministry of Power's comprehensive framework to establish an ecosystem for energy storage systems, aimed at delivering affordable, clean, stable, flexible, and secure power. It's also a continuation of BRPL's efforts, including its partnership with energy storage and software company Sheru to develop a vehicle-to-grid station with a bidirectional battery swapping station, all in support of meeting peak power demand.

BSES Rajdhani Power (BRPL) plans to deploy a 20 MW/40 MWh Battery Energy Storage System (BESS) in Delhi, and The Energy and Research Institute (TERI) has initiated a competitive bidding process to find the right partner for the project. The bidding process comes with specific requirements and financial commitments. Here's what you need to know.In its efforts to enhance power infrastructure, BSES Rajdhani Power (BRPL) is gearing up to implement a 20 MW/40 MWh Battery Energy Storage System (BESS) in Delhi. To make this a reality, BRPL has engaged The Energy and Research Institute (TERI) to oversee the selection of suitable bidders through a tariff-based competitive bidding process.Bidders interested in taking on this project have until September 22, 2023, to submit their proposals. The bids will then be opened on September 29, marking a significant step toward advancing energy storage capabilities in the region.The scope of work for the selected bidder encompasses a wide range of responsibilities, including site survey, planning, design, engineering, transportation, supply, installation, commissioning, and maintenance of the BESS for a period of 12 years. This comprehensive approach aims to ensure the successful integration of the BESS into the local power grid.In terms of financial requirements, bidders must provide an earnest money deposit (EMD) of ₹15 million (~$180,559) and furnish a performance bank guarantee (PBG) equivalent to 7.5% of the capital expenditure of the project cost. The contractual period is expected to span from the signing of the Battery Energy Storage Service agreement (BESSA) until 12 years after the commercial operation date.Bidders should also be prepared to contribute 30% of the project's total capital investment as equity. While the developer can explore partnerships with commercial investors to secure this investment, the remaining 70% of the capital investment is expected to be financed at a concessional rate of 1% of the cost of capital.It's worth noting that the Delhi Electricity Regulatory Commission (DERC) has already granted in-principal approval for the project. BRPL has identified potential project sites within their authorised zone in Delhi and will make a final selection from these options.Eligible bidders must have a track record of commissioning battery energy storage systems connected to the grid, with a minimum capacity of 1 MWh, either in India or globally, within the last five years. Additionally, they must possess a valid type test report for the battery conducted at accredited institutions, such as the Central Power Research Institute (CPRI) or Electrical Research and Development Association (ERDA), within the last five years.The financial requirement for bidders is a minimum net worth of ₹350 million (~$4.2 million) as of the last day of the preceding financial year.The selected developer will play a crucial role in setting up the BESS, connecting it to the distribution grid, and maintaining its operations. They will be responsible for ensuring that the BESS efficiently charges and discharges energy in line with the utility's requirements for the contracted capacity.Upon the completion of the BESSA term, the project will be transferred to the utility with specified energy throughput, adhering to the BESSA provisions.This initiative aligns with the Ministry of Power's comprehensive framework to establish an ecosystem for energy storage systems, aimed at delivering affordable, clean, stable, flexible, and secure power. It's also a continuation of BRPL's efforts, including its partnership with energy storage and software company Sheru to develop a vehicle-to-grid station with a bidirectional battery swapping station, all in support of meeting peak power demand.

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