The National System Operator (Pvt.) Ltd. (NSO) has invited international bids for the development of a 250 MW / 1000 MWh Standalone Battery Energy Storage System (BESS) in Sri Lanka. Issued under International Competitive Bidding (ICB) through Request for Proposals (RFP Tender No: TR/REP&PM/ICB/2026/001/C), the project marks one of the country’s largest energy storage initiatives aimed at strengthening grid stability and supporting the growing integration of renewable energy.
The project will be developed under the Build, Own, and Operate (BOO) model and will consist of multiple battery storage facilities, each with a capacity of 10 MW / 40 MWh. Together, these projects will provide energy shifting services and frequency response support to Sri Lanka’s national electricity grid over a 15-year operational period.
The NSO has announced a detailed implementation schedule for interested developers. Requests for clarifications regarding the tender documents must be submitted by July 21, 2026. A pre-bid meeting is scheduled for July 24, 2026, at 10:00 a.m. at the Director’s Office (RE & ESCP) in Kolonnawa, where potential bidders will have an opportunity to seek further information about the project requirements.
Bid submissions must be delivered before 10:00 a.m. on August 14, 2026, with the bid opening taking place immediately afterward. The Letter of Award is expected to be issued on September 29, 2026, while successful bidders will be required to accept the award by October 6, 2026. The Energy Storage Agreement (ESA) is planned to be signed on November 6, 2026. The project is targeted to achieve commercial operation, including testing and commissioning, by May 6, 2027.
The tender also outlines strict financial security requirements. Each bidder must submit an Earnest Money Deposit (EMD) in the form of a bank guarantee worth LKR 25 million for every 10 MW / 40 MWh project. The guarantee must be issued by an approved local commercial bank or a foreign bank confirmed by a local institution and remain valid for at least 180 days from the bid closing date.
Successful bidders or their Special Purpose Vehicles (SPVs) must also provide a Performance Bank Guarantee (PBG) of LKR 85 million for each 10 MW / 40 MWh facility. This guarantee must be submitted within 30 days of receiving the Letter of Award or at least seven days before the EMD expires. It will remain valid until 30 days after the project’s Commercial Operation Date.
The battery energy storage systems will be connected to the national grid at the 33 kV voltage level across 25 identified substations located in different parts of Sri Lanka. These include Ambalangoda, Chunnakam, Hambantota, Kurunegala, Matara, Pannipitiya, and several other strategic grid locations. Developers will be responsible for procuring or leasing approximately 80 perches, equivalent to around 0.5 acres of land, for each BESS installation.
The technical specifications require all battery systems to operate in true grid-forming voltage and frequency (V/F) mode. In addition, every facility must maintain a minimum monthly system availability of 97% and achieve an AC-to-AC roundtrip efficiency of at least 85%, ensuring reliable and efficient performance throughout the project’s operational life.
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