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Karnataka Issues Global Tender for 450 MW/900 MWh BESS Projects
The Indian state of Karnataka, through KREDL, has issued a global tender for two large-scale BESS projects totaling 450 MW/900 MWh. Supported by Viability Gap Funding, these projects aim to provide 'on-demand' energy and offer flexibility in charge and discharge cycles. Bids are open until September 28, 2026.
The Karnataka Renewable Energy Development Limited (KREDL) has recently issued a global tender for the development of two large-scale Battery Energy Storage System (BESS) projects in the Indian state of Karnataka. These initiatives, aimed at providing "on-demand" energy usage, include a 250 MW/500 MWh standalone BESS project at Kushtagi and a second project of 200 MW/400 MWh at Huliyurdurga. Combined, these projects represent a substantial capacity of 450 MW/900 MWh.
The deadline for submitting bids is set for September 28, 2026. The projects are supported by Viability Gap Funding (VGF), specifically earmarked for the broader Karnataka 2000 MWh BESS program. This funding aims to ensure the financial viability of the projects and is admissible at a rate of Rs. 18,00,000 per MWh of the Contracted Energy Storage Capacity, subject to compliance with MNRE Scheme Guidelines and contractual conditions.
Developers awarded the projects will be responsible for setting up, operating, and maintaining the BESS systems. The energy storage facilities must be made available to the Buying Entities, the Electricity Supply Companies (ESCOMs), for charging and discharging on an "on-demand" basis. The BESS should be designed to provide a minimum of two hours of discharging capacity at rated power.
The developer is required to make the BESS available for two operational cycles per day, equating to two complete charge-discharge cycles. The State Load Despatch Centre (SLDC), acting on behalf of the ESCOMs, may, at its discretion, utilize the BESS for up to three operational cycles per day, with a maximum of 730 operational cycles annually. ESCOMs have the flexibility to split the discharge of stored energy into one or two sessions and can also discharge below the rated power, extending the discharge duration up to four hours. A maximum cooling time of one hour is allowed between charge and discharge or discharge and charge cycles, with the recovery time for one cycle not exceeding two hours.
The projects will be established in the vicinity of designated substations within Karnataka's STU network, with land identification falling under the project's scope. The ESCOMs are obligated to procure 100% of the Project Capacity. This tender highlights the growing demand for large-scale energy storage systems to support grid stability and flexibility.
Source: saurenergy.com
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