SJVN Limited has issued a Request for Selection (RfS) for setting up 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) in the state of Haryana under the Viability Gap Funding (VGF) scheme, supported through the Power System Development Fund (PSDF). The tender aims to accelerate storage capacity development to strengthen renewable energy integration and ensure grid flexibility.
The project will be executed through Tariff-Based Competitive Bidding (TBCB), where selected Battery Energy Storage Developers (BESSDs) will sign a long-term Battery Energy Storage Purchase Agreement (BESPA) with SJVN. The scheme includes financial support through VGF, which will be released in multiple tranches upon achieving project milestones. As per the document, the VGF disbursement structure includes 20% of the amount at the time of Financial Closure, 50% at Commercial Operation Date (COD), and the remaining 30% after completion of one year of successful operation.
To participate in bidding, developers must submit an Earnest Money Deposit (EMD) in the form of a Bank Guarantee. The EMD amount has been set at INR 2,40,000 per MWh of the bid capacity.
This amount ensures the seriousness of participation and will be returned after the reverse auction process to the unsuccessful bidders within 15 days. For successful bidders, the EMD will be returned once the Performance Bank Guarantee (PBG) is submitted and verified by SJVN.
The Performance Bank Guarantee requirement is fixed at INR 6,00,000 per MWh of the contracted capacity, to be submitted before signing the BESPA.
The PBG must remain valid up to nine months after the Scheduled Commencement of Supply Date (SCSD), and will be released within 45 days after successful commissioning of the project, subject to performance conditions. Developers also have alternative options to submit a Payment on Order Instrument (POI) from institutions like IREDA, PFC, or REC, or an Insurance Surety Bond instead of a traditional bank guarantee.
In case of delay or failure to commission the project, the PBG can be encashed, and the project may be cancelled. If the BESPA is not signed within the stipulated timeline after the offer, the entire EMD amount may be forfeited.
The project emphasizes system availability and performance, with strict penalties for non-compliance related to minimum energy output and round-trip efficiency. The agreement also specifies recovery of VGF in case of termination or reduced capacity.
This tender marks a significant step toward large-scale energy storage deployment in Haryana, which is expected to improve renewable power reliability and support India’s clean energy objectives.
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