Tamil Nadu Green Energy Corporation Limited (TNGECL) has invited bids for setting up 500 MW / 1000 MWh Standalone Battery Energy Storage Systems (BESS) in Tamil Nadu. This project will be developed in six separate projects of varying capacities and will operate on a Build-Own-Operate (BOO) model under tariff-based global competitive bidding with Viability Gap Funding (VGF) support.
The Request for Selection (RfS) was floated on 3rd March 2025 at 6:00 PM. A pre-bid meeting will be held on 10th March 2025 at 3:00 PM at TANTRANSCO Building, Chennai. Interested bidders can send their queries to cences@tnebnet.org from 4th March 2025. TNGECL will respond to these pre-bid queries by 15th March 2025.
Online bid submissions will start on 16th March 2025 at 4:00 PM. The deadline for online bid submission is 2nd April 2025 at 2:00 PM. The techno-commercial bid opening is scheduled for 3rd April 2025 at 3:00 PM at the Office of the Chief Engineer, NCES, TNGECL, Chennai. The date and time for the e-reverse auction will be communicated later to the eligible bidders.
The Earnest Money Deposit (EMD) for this tender is INR 2,00,000 (two lakh rupees) per MW, which should be submitted either through online transfer or as a Bank Guarantee (BG). The BG needs to be submitted physically to the Chief Engineer, NCES. Selected bidders will have to submit a Performance Bank Guarantee (PBG) equivalent to 40% of the annual payment due to the developer before signing the Battery Energy Storage Purchase Agreement (BESPA) with TNPDCL.
The bid processing fee is ₹15 lakh plus 18% GST per project capacity quoted by each bidder. Payment must be made via NEFT/RTGS transfer to TNGECL before the bid opening date, and proof of payment needs to be uploaded with the bid.
The six BESS projects will be located at substations in Tamil Nadu. The distribution is as follows:
Thennampatty SS – 200 MWh, Anuppankulam SS – 200 MWh, Ottapidaram SS – 200 MWh, Vellalaviduthi SS – 200 MWh, Kayathar SS – 100 MWh, Karaikudi SS – 100 MWh
The projects will support the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) in storing and discharging power on demand. The minimum bid size is 50 MW (100 MWh), and each bidder can be allocated up to 250 MW (500 MWh), which is 50% of the total capacity.
The projects aim to enhance grid stability, manage renewable energy variability, and support Tamil Nadu’s goal of integrating higher renewable energy capacities into its power grid. Land for the projects will be provided by TANTRANSCO on a Right of Use (ROU) basis for a nominal lease of Rs. 1 per year per project.
The initiative is part of Tamil Nadu’s participation in the State Component of the Viability Gap Funding scheme, under which a maximum VGF of 30% of capital cost or ₹27 lakh per MWh (whichever is lower) will be provided by the Central Government.
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