Bihar State Power Generation Company Limited (BSPGCL) has invited bids for the development of a 500 MWh standalone Battery Energy Storage System (BESS) under a Tariff-Based Competitive Bidding (TBCB) process. The project is aimed at strengthening the power infrastructure in Bihar with Viability Gap Funding (VGF) support and will be implemented under the Build-Own-Operate-Transfer (BOOT) model. The selected developer will be responsible for the installation, operation, and maintenance of the BESS.
The tender process follows a single-stage bidding system with two envelopes. Interested bidders must submit their proposals online via the Bihar e-Procurement portal. The deadline for bid submission will be 23rd March 2025. The earnest money deposit (EMD) required for participation in the bid is set at ₹7.5 lakh per MW, and the selected bidder will be required to furnish a Performance Bank Guarantee (PBG) of ₹18.5 lakh per MW before signing the Battery Energy Storage Purchase Agreement (BESPA).
The selected projects will be connected to the state grid and will operate based on demand from the distribution companies. The BESS developers (BESSD) must comply with performance requirements, including ensuring a minimum system availability of 95% monthly. The system will be used for peak load management, grid stability, and other ancillary services.
BSPGCL has structured the financial assistance through a Viability Gap Funding (VGF) mechanism, offering ₹27 lakh per MWh or up to 30% of the capital cost, whichever is lower. The total VGF support for the project is set at ₹135 crore, and it will be released in five tranches, linked to project milestones. The first tranche (10%) will be disbursed upon financial closure, while the remaining payments will be spread across the first three years after commissioning.
To ensure transparency, the bidding process includes an e-Reverse Auction (e-RA) for final price discovery. The lowest bidder (L1) will have the first choice in selecting the project location, followed by other successful bidders. The minimum project size is set at 20 MWh.
The scheduled commissioning date (SCD) for the project is set at 18 months from the effective date of the BESPA, with a maximum delay allowance of six months subject to penalties. If the project is delayed beyond this period, the developer will face encashment of the performance bank guarantee and possible termination of the agreement for the uncommissioned capacity.
Bidders are required to meet eligibility criteria, including financial and technical qualifications. The selected developers must ensure compliance with grid connectivity regulations and provide necessary certifications for project commissioning. The Bihar government has approved deviations in the bidding process to allow 100% allocation of the requisitioned quantum to a single bidder for competitive pricing.
BSPGCL reserves the right to amend the tender conditions or cancel the bidding process if necessary. The project is expected to contribute significantly to Bihar’s energy transition and grid reliability, ensuring a stable and efficient power supply for the state.
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