Vijayawada: In a significant step towards strengthening the energy infrastructure, Andhra Pradesh has set the stage for the establishment of the country’s first standalone Battery Energy Storage System (BESS), with a capacity of 500 MW/1000 MWh. The project is being taken up with the Centre’s Viability Gap Funding (VGF) support. This initiative, spearheaded by state govt, is part of India’s larger effort to integrate renewable energy and enhance grid stability.
Energy department released the tender schedule for BESS showcasing its proactive stance in adopting cutting-edge energy storage solutions to address grid stability and energy efficiency challenges. With increasing reliance on renewable energy, battery storage systems play a crucial role in ensuring uninterrupted power supply and efficient energy management. This initiative aligns with India’s broader energy transition goals, supporting the country’s commitment to achieving 500 GW of non-fossil fuel capacity by 2030.
“AP Genco formed a joint-venture company with NHPC named ‘ANGEL,’ for establishment of five pumped storage projects (PSPs) of 5,070 MW capacity in the state. The JV also proposes to establish solar power plants of approximately 9,000 MW for pumping energy requirement of these PSPs. The setting up of the said PSPs and solar plants is going to contribute in a big way to centre and state govt commitments to reduce carbon emissions and in meeting the requirement of 50% renewable energy proportion in the grid by 2030,” said chief secretary K Vijayanand.
NHPC Limited has been nominated as a BESS implementing agency (BIA) by Union ministry of power, under VGF scheme (CPSU component) for development of BESS. NHPC will enter into a Battery Energy Storage Purchase Agreement (BESPA) with the successful bidders selected based on the RfS, for availing the energy storage facility as per the terms, conditions and provisions of the RfS and BESPA. The charging power shall be provided by the buying entity.
Energy storage facility that is to be procured by NHPC from the above BESS has been provisioned on behalf of AP discoms. NHPC will be an intermediary nodal agency for using the energy storage facility and charging/discharging the BESS in line with respective agreements with the BESSD and discoms. For this tranche, 100% of the awarded capacity shall be off taken by discoms. The last date for submission of bid is March 19.
