SJVN has floated a tender to set up 2,000 MW of energy storage capacity from pumped storage projects (PSPs) across India. The storage capacity will have eight hours of discharge with a maximum of five hours of continuous discharge on a build, own, and operate basis.

Bids must be submitted by January 27, 2026. Bids will be opened on January 30.

The project will be set up to provide firm and dispatchable energy to distribution companies/buying entities to help meet their demand patterns during peak hours.

Bidders can quote for a minimum of 50% of the project capacity, or 50 MW, whichever is lower, and a maximum of 2,00 MW.

They must furnish an earnest money deposit of ₹1.11 million (~$12,290.25)/MW and a document cost of ₹29,500 (~$326.63).

Selected bidders must submit a performance bank guarantee of ₹2.77 million (~$30,725.63). They must also sign a 40-year power purchase agreement (PPA) with SJVN.

The scope of work entails the financing, development, design, engineering, procurement, construction, and commissioning of the energy storage system (ESS). It also involves providing operation and maintenance services.

Successful bidders must provide the transmission network up to the interconnection or delivery point and interconnect the ESS with the interstate/intrastate transmission systems. They must also obtain approval for connectivity from the central transmission utility (CTU).

Selected bidders must identify and acquire land for the project and the CTU connection. They must obtain statutory and non-statutory approvals, clearances, licenses, and no-objection certificates for the project’s development.

The scope of work also includes undertaking site studies or investigations, preparing and obtaining approvals for pre-feasibility and detailed project reports, and providing grid connectivity and power evacuation up to the pooling point.

The PSPs must maintain a maximum conversion loss of 25%. They must ensure an annual availability of at least 95% and a minimum round-trip efficiency of 75% for each charging-discharging cycle.

Only commercially established and operational technologies must be used to minimize technology risk and ensure the timely commissioning of the contracted capacity.

Successful bidders can choose the type and power rating of the PSP’s equipment, subject to the project layout, operating water levels, reservoir storage capacity, data on long-term flow availability, the selected turbo-generating equipment type and its parameters, and other relevant parameters.

The projects must be commissioned within five years. Delay in commissioning will result in liquidated damages in the form of daily encashment of the performance bank guarantee, proportional to the undelivered capacity, for up to six months after the scheduled commissioning date. Any delays beyond this period will result in reducing the PPA capacity to the commissioned amount and terminating the remaining contracted capacity.

PSP projects already under construction, pending commissioning, or commissioned but selling energy on a short-term merchant basis are also eligible under this tender. This eligibility will be subject to them not being selected under a state or central program, and they do not have an obligation to sell the power to any beneficiaries.

Bidders can also offer a minimum of 50 MW of partial capacity from their PSPs for which no PPA has been signed.

Already commissioned PSPs must have a minimum lifespan of 40 years from the power supply commencement date.

Bidders must have developed projects in the infrastructure sector with capital expenditure calculated at a rate of at least ₹55.5 million (~$614,606.03)/MW of the quoted capacity in the last five years or as of the bid submission deadline.

Each of these infrastructure projects must have had a minimum capital expenditure of ₹830 million (~$9.2 million).

Bidders must have a minimum net worth of ₹11.1 million (~$122,921.21)/MW for the previous financial year or seven days before the bid submission deadline.

Bidders must meet any of the following criteria:

• They must have had a minimum annual average turnover of ₹16.65 million (~$184,381.81)/MW during the preceding financial year.
• They must also have had a profit before depreciation, interest, and taxes of at least ₹3.33 million (~$36,876.36)/MW during the same period
• They must have an in-principal sanction letter from their lending institution or bank, committing a line of credit of at least ₹3.96 million (~$43,897.27)/MW of the quoted capacity to meet the project’s working capital requirement

Recently, SJVN invited bids to set up 250 MW/500 MWh standalone battery energy storage (BESS) systems at the 1,360 MW Panipat thermal power station in Haryana.

In February this year, SJVN issued a request for selection to develop a 375 MW/1,500 MWh standalone BESS in Uttar Pradesh under the build-own-operate model.