MPPMCL Releases Competitive Bidding Tender For 500 MW Energy Storage Capacity

Representational image. Credit: Canva

The Madhya Pradesh Power Management Company Limited (MPPMCL) has released a tender inviting bids for the procurement of 500 MW of energy storage capacity. This endeavor, with a discharge duration of 6 hours and a maximum continuous discharge period of 4 hours, seeks to harness the potential of Pumped Hydro Storage Plants (PHSPs) for a remarkable 40-year duration.


The solicitation is open to Pumped Hydro Storage Developers who are willing to embark on a “Build-Own-Operate-Maintain” (BOOM) basis, catering to projects already commissioned or those in development across India.


The selected bidder(s) will shoulder the responsibility of both charging and discharging electricity, up to a capacity of 500 MW, capable of 6 hours of discharge with a maximum 4-hour continuous discharge from PHSPs. This procurement is governed by a 40-year long-term Pumped Hydro Storage Power Procurement Agreement (PHSPPA) with the Procurers. The input energy for charging will be supplied by the Procurer at the Delivery Point, up to the declared Cycle Loss.


The due date for the submission of the “Techno-Commercial Bid” is set for the 6th of November 2023.

MPPMCL, authorized by the Madhya Pradesh Distribution Companies (Discoms) and the Uttar Pradesh Power Corporation Limited (UPPCL), is facilitating the procurement of energy storage capacity for 500 MW, with a discharge duration of 6 hours and a maximum 4-hour continuous discharge from Pumped Hydro Storage Plants (PHSPs). This is being achieved through a competitive bidding process on behalf of the Madhya Pradesh Discoms and UP Power Corporation Limited (UPPCL), in compliance with the terms and conditions specified in the tender documents.

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A Single Stage Two Envelope bidding process has been adopted for the selection of developers, and the selected bidder(s) will be responsible for providing energy storage capacity from PHSPs on a “Build-Own-Operate-Maintain” (BOOM) basis, with flexibility in choosing the location anywhere in India for an aggregate capacity of 500 MW.

The bid submission process is designed to be streamlined and efficient, with bidders required to submit a single bid, regardless of the number of projects or locations they intend to bid for. This encourages efficiency and minimizes complexity in the bidding process.

Bidders are allowed to quote a capacity of up to 500 MW and are free to offer bids from PHSPs located across India. However, they are responsible for securing ISTS connectivity, Long-Term Access (LTA), and General Network Access (GNA) at their own cost.

The selection of the developer will be based on a competitive bidding process, with the Lowest Quoted Total Storage Cost discovered during an E-Reverse Auction being a key criterion. This cost will be a combination of the Annual Fixed Charge (AFC) expressed in INR/MW/annum, as quoted by the bidders at the Delivery Point, and the Cycle Loss (CL) expressed as a percentage declared by the bidders.

Upon selection, the Procurer will enter into a Pumped Hydro Storage Power Procurement Agreement (PHSPPA) with the Developer for the contracted capacities at the Delivery Point. The Procurer will provide the input energy for charging at no cost to the Developer. However, any deviation charges for charging and discharging will be borne by the developer, as per applicable regulations.

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Eligible bidders have the flexibility to quote from PHSP projects commissioned after March 8, 2019, as well as those at various stages of development and construction.

The flexibility extends to the design of the Pumped Hydro system, allowing bidders to choose the type and power rating of equipment based on project-specific factors like layout, water levels, reservoir capacity, flow availability, and turbine equipment type.

Bidders will be responsible for meeting the daily discharge requirements, which include 6 hours of discharge, with a maximum continuous discharge period of 4 hours, based on schedules provided by the State Load Dispatch Center (SLDC).

The tender also outlines specific timelines for project commissioning, with a scheduled commissioning period of 72 months or 6 years from the date of signing the PHSPPA, allowing for full or partial project commissioning before the scheduled COD.

To participate in the bidding process, bidders are required to provide a Bid Security, calculated as INR 5,00,000 per MW of quoted capacity.

The entire cost associated with bid preparation and participation is to be borne by the bidders, and the outcome of the bidding process does not affect this cost responsibility.

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In the interest of fairness and transparency, only one bid is allowed from each bidder or consortium, with a total capacity allocation of 500 MW. The capacity of a single project can range from 100 MW to 500 MW, with the possibility of the last contracted capacity being less than 100 MW.

The bid validity period is set at a minimum of 180 days from the original Bid Due Date, with provisions for extensions upon request. Extensions of the bid validity period will not permit bidders to modify their bids.

This tender represents a significant step toward enhancing India’s energy storage capabilities and securing a sustainable energy future. It encourages innovation and competitiveness among Pumped Hydro Storage Developers and underscores the country’s commitment to renewable energy sources.

Please view the document below for more details.

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