NTPC Renewable Energy Floats Tender for 9,000 MWh Energy Storage Capacity
Renewable Energy (RE) arm of state-owned energy major NTPC, NTPC Renewable Energy Ltd. (NTPC REL), has invited bids for the development of 9,000 MWh Energy Storage Solutions (ESS) capacity across India. These ESS projects will be Inter-State Transmission System (ISTS)-connected.
NTPC REL’s Energy Storage Solutions Projects to Support Round-the-clock Renewable Power
NTPC REL’s battery storage projects will enhance reliability of power from its projects by supporting Round The Clock (RTC) supply. As per the tender document, these ESS projects will complement NTPC REL’s wind and solar power generation profile.
Once charged, power stored in the ESS projects will be utilised by NTPC REL as per its requirement on an ‘on-demand’ basis.
Specifics of NTPC Renewable Energy’s ESS Tender
The minimum size of any ESS project under this tender has to be 600 MWh with at least 100 MW RE generation capacity. The maximum ESS capacity that can be developed by a successful bidder has been set to 9,000 MWh with an associated RE generation capacity of at least 1,500 MW.
Successful bidders for the same would be selected by International Competitive Bidding Process, post which NTPL REL would sign 25-year Energy Storage Service agreements with them. This means that both domestic as well as international players shall be eligible to place their bids for developing this ESS capacity.
These projects are to be developed by the contract winners on a Build Own Operate (BOO) basis. Last date for submission of bids against this tender is 16th June 2023.
NTPC REL Tender Significant for India’s ESS Growth
As per International Energy Agency’s (IEA) India Energy Outlook 2021, India’s Battery Energy Storage System (BESS) capacity is projected to grow to about 140-200 GW by 2040. The report emphasises the importance of BESS in providing much-needed power flexibility in context of solar power projects in the country to enable a smooth generation-demand dynamic.
Separately, Institute for Energy Economics and Financial Analysis (IEEFA), a US-based think tank, published a report in January 2023 about investment opportunities in India’s clean energy sector. The report stated that ‘sufficient bidding pipelines’ and ‘timely signing of the required offtake agreements for completed bids’ are important for BESS capacity addition in India.
Therefore, NTPC REL’s aforementioned tender is significant towards fulfilling India’s Energy Storage requirements.