NHPC Invites Bids for 500 MW/1,000 MWh BESS Under VGF Scheme in Andhra Pradesh

NHPC Limited has issued a tender for the development of standalone battery energy storage systems (BESS) in Andhra Pradesh, with a total storage capacity of 1,000 MWh (500 MW with a two-hour discharge duration). The projects will be implemented under the viability gap funding (VGF) scheme. The deadline for the bidding is March 17, 2025.

The BESS will be connected to the state transmission system and will support Andhra Pradesh power distribution companies by meeting morning and evening peak power demands. The system will operate with a two-cycle charging and discharging mechanism each day, with charging power supplied by the buying entity. NHPC has been designated as the implementing agency by the Ministry of Power and will oversee project execution on behalf of the state’s power distribution companies.

NHPC will facilitate the operation of the storage facility in accordance with agreements between the BESS developer and the buying entity. The successful bidders will enter into a battery energy storage purchase agreement, enabling the discoms to utilise the storage facility on an on-demand basis. Additionally, projects selected under this request for selection will qualify for central financial assistance in the form of viability gap funding.