Centre issues largest tender on battery storage for solar power
It marks first tranche of government’s target to inject more renewable energy in the national grid
The Solar Energy Corporation of India Limited (SECI) has issued a record-breaking tender for the development of 500 MW/1000-MWh Standalone Battery Energy Storage Systems (BESS). This marks the country's first such tender and will provide power distribution companies with on-demand storage facilities. The initiative is part of the government's goal to set up 4000 MWh of Battery Storage Capacity to boost renewable energy integration in the national grid.
The Central Electricity Authority (CEA)/MoP recommends a battery energy storage capacity of 27,000 MW/108,000 MWh (4-hour storage) by 2029-30. BESS systems store energy produced by solar panels during the day and release it during peak evening demand hours, reducing reliance on coal plants. India has pledged to achieve 500 GW of renewable energy capacity by 2030, with solar-BESS playing a crucial role.
The IEA predicts India will have 140 GW of battery storage by 2040, while the government estimates a need for 27 GW by 2030. Recent academic studies suggest a requirement of 63 GW/252 GWh for achieving the 500 GW solar capacity target. The SECI tender will set up 500 MWh (500 MW x 2 hours) of capacity in Rajasthan, with 60% of the capacity to be bought by SECI on behalf of power purchasing companies.
Project developers can sell the remaining capacity through third-party or market sales. The term of the projects will be 12 years, and the systems must be available for two operational cycles per day.
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