APTRANSCO Floats Tender For 1,000 MW/2,000 MWh Battery Energy Storage Project In Andhra Pradesh

The Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) has announced a major step towards strengthening the state’s power infrastructure with the release of a new Request for Selection (RfS) for a large-scale Battery Energy Storage System (BESS). The tender, which was issued on August 25, 2025, under RfS No. APTRANSCO/BESS/Phase-II/2025-26 seeks bids for the development of a 1,000 MW/2,000 MWh BESS project. This initiative is part of the second phase of a broader program aimed at integrating advanced energy storage solutions with renewable energy sources to provide a stable and reliable power supply for the state.

The project will play a crucial role in balancing the intermittent nature of renewable energy, such as solar and wind. By providing storage capacity, it will ensure that surplus power generated during the day can be stored and later used during peak demand hours when renewable generation is limited. This will improve grid reliability and support the state’s ambition to expand renewable power integration. The project will be developed under a Tariff-Based Competitive Bidding process with financial support from the Power System Development Fund (PSDF) through Viability Gap Funding (VGF).

The tender will follow a single-stage, two-envelope bidding system, which requires participants to submit both technical and financial bids. The entire project is to be set up on a Build, Own, and Operate (BOO) basis. Successful bidders will enter into a Battery Energy Storage Purchase Agreement (BESPA) with the state DISCOMs and APTRANSCO. The identified locations for the storage systems include several substations across the state, such as Hindupur, Talaricheruvu, Kalikiri, Pampanuruthanda, Maradam, Simhachalam, and Gajuwaka.

To participate, bidders must meet specific financial requirements laid out in the tender document. The cost of the document itself is INR 50,000 plus 18% GST. In addition, there are bid processing fees applicable for each project location, ranging from INR 1.0 lakh to INR 7.5 lakh plus GST. One of the key conditions is the Earnest Money Deposit (EMD), set at INR 4,80,000 per MW. This must be submitted in the form of a Demand Draft, Bank Guarantee, or another approved financial instrument. Furthermore, bidders who are declared successful will need to provide a Performance Bank Guarantee (PBG) of INR 12,00,000 per MW before the signing of the BESPA.

The RfS document also highlights the procedural timelines. A pre-bid meeting will be scheduled, and the deadlines for bid submission, along with the opening of techno-commercial bids, will be available on the ISN-ETS portal. The e-Reverse Auction date will be separately communicated to all eligible bidders through email after the initial stages are complete.

This 1,000 MW/2,000 MWh BESS project represents a significant advancement in Andhra Pradesh’s efforts to integrate renewable energy at a larger scale. It also aligns with India’s national energy transition strategy of achieving 500 GW of non-fossil-based capacity by 2030. With support from viability gap funding and a transparent bidding process, the project is expected to attract strong interest from developers. By combining renewable energy with reliable storage, Andhra Pradesh is positioning itself as a leader in advancing India’s clean energy goals while ensuring round-the-clock power availability for consumers.