Punjab Invites Bids For 500 MW/1000 MWh Battery Energy Storage Project

Punjab State Power Corporation Limited (PSPCL) has officially invited bids for setting up a large-scale energy storage project in the state, aiming to enhance its power management capabilities. The project involves establishing 500 MW/1000 MWh standalone Battery Energy Storage Systems (BESS) through a tariff-based global competitive bidding process. This initiative is expected to strengthen Punjab’s electricity grid, improve stability, and help manage peak power demand using advanced storage technology. The project is being managed by the Office of Chief Engineer/NRSE & Thermal Designs in Patiala.

Developers interested in participating can access the official Request for Selection (RfS) documents from the Bharat Electronic Tender portal. Several financial commitments are required to join the bidding process. The cost of the RfS is set at INR 50,000 plus applicable GST. A bid processing fee of INR 3,00,000 plus GST must also be paid. Bidders are required to provide an Earnest Money Deposit (EMD) of INR 4,71,000 per MW, which can be submitted as a Bank Guarantee, Payment Order, or Insurance Surety Bond from nationalized banks, PFC, REC, or IRDAI-approved insurers. Successful bidders will also need to furnish a Performance Bank Guarantee (PBG) of INR 11,77,500 per MW.

The tender process follows a strict timeline. The tender forms became available from January 13, 2026. Bidders must register for the pre-bid meeting by January 27, 2026, via email to the Superintendent Engineer. The last date for submission of both non-financial and price bids is February 13, 2026, at 15:00 hrs. Technical bids will be opened on February 16, 2026, at 11:00 hrs, followed by financial bid opening on March 16, 2026, at 11:00 hrs. Bids must remain valid for 12 months, until February 13, 2027.

All bid submissions must be made through the online e-bidding portal. Physical copies of EMD instruments must be delivered to the PSPCL office within two working days after the bid closing. Once technical and financial evaluations are completed, PSPCL will conduct a Reverse Auction. Qualified bidders will be notified about the auction details at least a week in advance. This project marks a significant step for Punjab toward building a modern energy storage system capable of supporting renewable energy integration and ensuring a reliable electricity supply for the state.