The Madhya Pradesh Power Management Company (MPPMCL) has invited bids to procure 500 MW of energy storage capacity from interstate transmission system (ISTS)- connected pumped storage projects (PSPs).

The last date to submit bids is October 27, 2025. Bids will be opened on October 31.

Bidders must submit an earnest money deposit of ₹1.2 million/MW (~$13,625) and a performance bank guarantee of ₹3 million (~$34,063.5)/MW.

They must also submit a tender document fee of ₹10,000 (~$113.54) and an application cost of ₹10,000 (~$113.54).

MPPMCL, on behalf of MP distribution companies and Uttar Pradesh Power Corporation (UPPCL), has floated the tender.

The scope of work encompasses the supply of energy storage from PSPs on a demand-based basis for 40 years, on a build, own, and operate basis.

The projects must ensure up to 6 hours of discharge and a maximum of 4 hours of continuous discharge.

Bidders must bid for a capacity of at least 50 MW from a single location.

Successful bidders must supply energy between November and April to MPPMCL and between May and October to UPPCL.

The projects must supply power within 72 months from the signing of the pumped storage project agreement (PSPA). The maximum period for the commencement of supply of the full contracted capacity from the signing of the PSPA will be limited to 10 years.

The power procurer must ensure the availability of the charging power required up to the declared cycle loss at the delivery point for the scheduled dispatch of power at its cost.

The scope of work also covers the maintenance of the transmission system up to the delivery point, bearing all costs related to transmission development and operation until the interconnection point.

Successful bidders must obtain ISTS connectivity, long-term access (LTA), and general network access (GNA) required for the projects and must incur all costs involved. All expenses, including connectivity charges, GNA charges, LTA charges, and losses up to the delivery point, must be borne by the bidders.

They must be responsible for ensuring the availability of ISTS-connected substations.

The projects must have a simple design with a minimum requirement of river diversion works, desilting and silt flushing arrangements, surge chambers, and very small water conductor systems.

The projects must have a cycle loss of less than 25% up to the metering point.

The procurer must bear all expenses incurred during the discharging of power, including wheeling charges and losses during transmission and distribution of power beyond the delivery point.

PSPs commissioned or in various stages of development beyond March 31, 2024, will be considered eligible for this project.

A successful bidder must have executed a contract exceeding the contract value of ₹500 million (~$5.67 million).

Bidders must use only commercially established and operational technologies to minimize technology risk and ensure the timely commissioning of projects.

They must have a net worth of at least 20% of the capital cost, subject to a minimum capital cost of ₹12 million (~$136,254)/MW.

Successful bidders must have a minimum annual turnover of ₹6 million (~$68,127)/MW in the last financial year.

Alternatively, they may demonstrate internal resource generation capability, as indicated by profit before depreciation, interest, and taxes, excluding other and exceptional income, for a minimum amount of ₹1.2 million (~$13,625)/MW.

Alternatively, they may submit an in-principle approval letter from lending institutions/banks of the successful bidder, committing a line of credit for a minimum amount of ₹1.5 million (~$17,031.8)/MW of the quoted capacity.

According to the Central Electricity Authority, the Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker, India added an additional 1,200 MW of pumped hydro capacity in the second quarter of 2025.