TERI Floats 12.5 MW/25 MWh BESS Tender To Boost Delhi’s Grid Stability

TERI – The Energy and Resources Institute has released a major tender for a standalone Battery Energy Storage System (BESS) project to be deployed for BSES Rajdhani Power Limited (BRPL) in Delhi. The details of the project come from the draft Battery Energy Storage System Agreement, which forms Volume III of the official Request for Proposal documents. This tender marks a significant step toward strengthening Delhi’s power distribution system with large-scale storage capabilities.

The tender is listed under reference number TERI/MAT/2025-26/031 and follows a Tariff-Based Competitive Bidding process. The project involves the design, supply, testing, installation, commissioning, and subsequent operation and maintenance of a 12.5 MW/25 MWh BESS. The system is planned for deployment at the 33/11 kV Shivalik Grid Station in Delhi. BRPL, the Buying Utility for this project, is a joint venture between Reliance Infrastructure Limited and the Government of the National Capital Territory of Delhi. The BESS is expected to operate on an “on demand” basis, providing charge and discharge cycles as required by the utility to support peak load management and grid stability.

The tender process follows a structured timeline. The tender was officially published on December 9, 2025, giving bidders a short window to prepare their submissions. The due date for submission of bids has been set as December 30, 2025. After the evaluation of bids and completion of the e-Reverse Auction (e-RA), the successful L1 bidder will be selected. The final Battery Energy Storage System Agreement must then be signed within seven days after the declaration of e-RA results. The Effective Date of the Agreement will be determined by whichever of the following events happens last: the date of signing the Agreement, the date when capacity charges or tariffs receive formal approval from the Delhi Electricity Regulatory Commission, or the date when the vacant project land is handed over to the BESS Developer.

Once operations begin, the Agreement will remain valid for twelve years from the Commercial Operation Date. The Commercial Operation Date is the date on which the commissioning certificate for the project is issued, marking the start of the operational phase.

The financial security requirements include the submission of a Performance Bank Guarantee by the BESS Developer in favour of BRPL. Although the draft mentions this requirement clearly, the specific amount of the PBG has not been provided in the text and remains blank in the document. The PBG will act as a safeguard against delays. If the developer fails to commission the project on time, the PBG will be encashed on a per-day basis according to the formula: PBG amount multiplied by the number of delayed days divided by 180. Developers may alternatively choose to make this payment directly to the utility instead of having the guarantee encashed. The draft agreement does not specify any Earnest Money Deposit requirement.

At the end of the twelve-year term, referred to as the Expiry Date, the developer must transfer the entire project to the utility for a token value of one rupee. This transfer must be free of all liabilities. A key condition for handover is that the system must retain at least 70% of its original 25 MWh capacity. An assessment of this remaining capacity must be conducted within the last 90 days of the contract term. If the capacity is found to be below the required threshold, the developer must restore or augment the system at their own cost within an additional 90-day period. This ensures the project remains functional and valuable for long-term grid support in Delhi.