The Telangana Power Generation Corporation (TGGENCO) has floated a tender to procure 2,000 MW of energy storage capacity from pumped hydro storage projects under a firm-dispatchable storage framework.

The pumped hydro projects can be located anywhere in India. However, each project location must offer a minimum capacity of 500 MW.

Bids must be submitted by January 19, 2026. Bids will be opened on January 27.

Bidders must furnish an earnest money deposit of ₹500,000 (~$6,024), a tender document fee of ₹10,000 (~$120), and a bid processing fee of ₹10,000 (~$120). Successful bidders must submit a performance bank guarantee of ₹700,000 (~$8,434).

The scope of work includes building, owning, operating, and maintaining the pumped hydro storage capacity and entering into a pumped hydro storage purchase agreement with the procurer for five years, corresponding to the operations and maintenance term.

The capacity must be sourced only from existing, commissioned, and grid-connected pumped hydro storage projects. The storage requirement specifies an 8-hour daily discharge, with a maximum continuous discharge of 6 hours. The projects must be capable of delivering power up to the contracted capacity at the interconnection point.

The Telangana DISCOMs will supply the charging energy required for the storage cycle up to the declared cycle loss. The projects must maintain a minimum annual availability of 95%. Bidders are required to declare the cycle loss, which cannot exceed 25%, and the overall conversion efficiency of the pumped hydro storage system must be at least 75%.

Interconnection is to be provided at interstate transmission system substations at 765 kV, 400 kV, 220 kV, or 132 kV, as applicable, with the metering point defined at the ISTS delivery point at the central transmission unit interface.

Bidders must have commissioned pumped hydro storage projects with a capacity at least twice the storage capacity quoted and have operated that capacity for a minimum of one year.

Bidders must have a minimum net worth of ₹5 million (~$60,241)/MW of quoted capacity and a minimum annual turnover of ₹10 million (~$120,482)/MW. For alternative investment funds, assets under management must be at least ₹15 million (~$180,723)/MW.

Liquidity requirements specify that bidders must demonstrate an annual turnover of ₹10 million (~$120,482)/MW for the financial year 2024–25, or as of a date at least seven days before bid submission, excluding other income. For example, a bidder quoting 500 MW must show a turnover of ₹5 billion (~$60.24 million).

In November this year, TGGENCO invited bids to set up 375 MW/1,500 MWh standalone battery energy storage systems.

In October this year, TGGENCO invited bids to prepare detailed project reports for solar projects of a cumulative capacity of 57 MW.