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Damodar Valley Corporation Names Winner of 500 MWh Energy Storage Auction

The project is valued at ₹7 billion

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Damodar Valley Corporation (DVC) has announced the winner of the auction to set up a 250 MW/500 MWh battery energy storage system (BESS) project in Maithon, Jharkhand.

Pace Digitek won the project valued at ₹7.02 billion (~$74.33 million).

The tender was floated in April 2025.

The project is part of Phase I of DVC’s plan to install a cumulative 500 MW/1,000 MWh battery storage projects in Jharkhand and West Bengal.

Pace Digitek’s scope of work entails the design, engineering, installation, testing, and commissioning of the BESS project.

The project must be designed for 12 years.

Pace Digitek will also provide operation and maintenance services.

The company must also design, fabricate, and assemble a fully functional and transportable energy storage system. It must install a control system that provides standard input/output channels and appropriate control actions for all required operational and protective features.

The BESS project will include a battery management system (BMS), an energy management system (EMS), a power conditioning system (PCS), a protection system, a communication system, and high and low-tension systems. It must also include auxiliary power and a monitoring and control system.

Pace Digitek must provide a minimum 12-year guarantee for the storage battery, BMS, EMS, and PCS. It must supply 2% of the mandatory spares for all the project equipment.

The company must also fully document the BESS’ design and expected performance and perform the system’s factory acceptance and type testing.

Pace Digitek must obtain site-specific data for developing installation implementation plans. It must also supply the necessary project maintenance equipment and tools, as well as the initial complement of spare parts.

The company must provide a 12-year warranty on the entire project and its equipment. It must also undertake the associated civil works and ensure a minimum project availability of 95% and an annual round-trip efficiency of at least 85%.

The BESS will be charged up to 85% from floating solar and hydroelectric projects. It must be designed to evacuate 250 MW for at least two hours/day to the grid during peak grid time.

The project must dispatch at least 70% of the total capacity till the end of its battery life.

Pace Digitek must place the point of common coupling, point of interconnection, and metering system at the new 132 kV switchyard/substation.

This March, Pace Digitek was among the winners of NTPC’s auction to set up 2,334 MWh of BESS at its thermal power stations across Karnataka, Maharashtra, Bihar, Andhra Pradesh, and Telangana (Lot-I). Pace Digitek secured 400 MWh for the Nabinagar thermal stations in Bihar.

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