Uttar Pradesh DISCOM to Tender 10 MW/40 MWh Battery Energy Storage Project
The commission approved UPPCL’s request to issue a tender for the project
September 23, 2022
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a request by the Uttar Pradesh Power Corporation (UPPCL) to issue a tender to install five battery energy storage systems (BESS) with a capacity of 10 MW/40 MWh in the state.
The project will be set up under build, own, operate, and transfer mode for 12 years.
The battery energy storage purchase agreement (BESPA) will be inked between the state distribution company (DISCOM), UPPCL, and the winning bidder.
The land for the project will be provided at identified 132/33 kV substations on a lease/right-to-use basis to the developer.
UPPCL, in its petition, highlighted a deficit of 2.5-3 GW in the state during peak hours, and to manage this, it was essential to install battery energy storage systems.
The BESS installation would also help UPPCL meet its Energy Storage Obligations (ESO).
UPPCL had conducted a feasibility study at various load centers for BESS and decided to install five battery energy storage systems of capacity 10 MW*4 hours.
To help install these systems, UPPCL intended to invite developers to set up BESS within 18 months of the award. The petitioner stated that the proposed tender was similar to the one issued by SECI to set up 1 GWh BESS and that there were no deviations from the Ministry of Power guidelines.
The selected bidder will be responsible for financing, construction, operation, maintenance (O&M), and electricity supply per the BESPA.
The fee set for the tender is ₹25,000 (~$309), and the document processing fee is ₹100,000 (~$1,237) per project.
Bidders must submit an earnest money deposit of ₹740,000 (~$9,155)/ MW per project.
Bidders must furnish a performance bank guarantee of ₹1.11 million (~$13,610)/ MW per project.
The net worth of the bidders must be ₹11.60 million (~$143,522)/ MW, and their turnover must be ₹2.9 million (~$35,884)/ MW.
The Commission observed that integrating BESS with existing and upcoming renewable energy capacity can optimize the generation mix and better utilization of the transmission infrastructure in the state.
It also noted that in its order on March 8, 2022, in a separate petition, UPPCL was directed to explore energy storage opportunities within or outside the state. In another order on March 11, 2022, the Commission asked UPPCL to prepare a plan to install a minimum of 100 MW of battery storage projects at various load centers in the state.
Considering the points presented by the petitioner, the Commission ruled that UPPCL could proceed with the bidding process.
The Commission noted that UPPCL must select revenue surplus locations in the interest of viability.
It also directed UPPCL to set the performance parameters at minimum round-trip efficiency (RtE) of 90% instead of 97.5% monthly and for BESS monthly availability to be less than 70% and no tariff payable.
UPERC directed UPPCL to validate the term liquidated damages in the bid documents while specifying the treatment of deviation settlement mechanism for the charging/ discharging schedule for the BESS.
Recently, the Ministry of Power issued the Renewable Purchase Obligation trajectory until the financial year 2029-2030. The notification for the first time included ESO to be met by all state DISCOMs.
In March 2022, the Ministry issued guidelines to procure and utilize BESS as part of the generation, transmission, and distribution assets, along with ancillary services.