The NTPC Vidyut Vyapar Nigam Limited (NVVN) has issued a Request for Selection (RfS) for setting up 500 MW/1,000 MWh Standalone Battery Energy Storage Systems (BESS) in Rajasthan under tariff-based competitive bidding. The project will be implemented under the Build-Own-Operate (BOO) model, and selected bidders will enter into a Battery Energy Storage Purchase Agreement (BESPA) with NVVN. The initiative aims to enhance grid stability and integrate renewable energy into the power system efficiently.
Bidders are required to submit an Earnest Money Deposit (EMD) of ₹6,82,000 per MW in the form of a Bank Guarantee. This deposit must be valid for 12 months from the last date of bid submission. The EMD ensures the commitment of bidders to the project and discourages non-serious participants.
Upon selection, successful bidders must provide a Performance Bank Guarantee (PBG) amounting to ₹17,05,000 per MW. The PBG must be submitted before signing the BESPA and remains valid until nine months after the scheduled commissioning date. This requirement ensures that developers adhere to project timelines, and any delay beyond the scheduled commissioning date may lead to penalties, including the encashment of the PBG.
The project will be implemented in multiple locations, with each bidder allowed a maximum allocation of 250 MW/500 MWh. The minimum bid size is 50 MW/100 MWh, and bids can be submitted in increments of 25 MW/50 MWh. Developers are expected to ensure two complete charge-discharge cycles per day and maintain a minimum system availability of 95% monthly.
The selected BESS developers will be eligible for Viability Gap Funding (VGF) of ₹27,00,000 per MWh or 30% of the capital cost of the project, whichever is lower. The VGF will be disbursed in five tranches: 10% at financial closure, 45% upon achieving commercial operation, and the remaining 45% spread over three years post-commissioning. Developers must submit a bank guarantee equivalent to the VGF amount before receiving each tranche.
The transmission and grid connectivity for the projects will be the responsibility of the developers, including compliance with all regulatory requirements. The BESS projects must connect to the Rajasthan State Transmission Utility (STU) network, ensuring proper scheduling of power. Any deviation from agreed schedules will result in penalties, as per regulations.
If a project is not commissioned within the agreed timeline, penalties will be imposed. In case of continued delays, the BESPA may be terminated, and the full PBG amount will be encashed. Early commissioning is allowed at the developer’s risk, and NVVN may purchase the stored power if the end procurer, Rajasthan Urja Vikas and IT Services Limited (RUVITL), agrees to procure the capacity before the scheduled date.
By implementing these financial and operational measures, NVVN aims to facilitate large-scale energy storage deployment in Rajasthan. This initiative supports India’s renewable energy transition and strengthens the electricity grid by ensuring better management of variable renewable energy sources.
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