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Home Storage

MoP Releases Draft Guidelines for TBCB in Procuring Storage Capacity from PSP

editor by editor
August 29, 2024
in Storage
Reading Time: 1 min read
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The Ministry of Power (MoP) has issued draft tariff based competitive bidding (TBCB) for procurement of storage capacity/stored energy from pumped storage plants (PSP).

The draft proposes a single stage two-part bidding process, consisting of technical and financial bidding stages for procuring storage capacity from pumped storage projects. For on-river PSPs, operations must begin within 66 months after signing the power purchase agreement (PPA). On the other hand, off-river PSPs require completion within 48 months of signing the PPA. The developers can start operations early with a 15-day notice, and the first phase of part commissioning must have a capacity of at least 50 per cent of the total project or 50 MW, whichever is lower. According to the draft, the government proposes two modes for procuring storage capacity from PSPs. The first mode involves PSPs located on sites pre-specified by the government, where the procurer can choose to develop the project on a site mentioned in the bidding document. If the site belongs to the government or a government entity, the project will be developed on a build own operate transfer basis for 25-40 years. The second mode allows the bidder to supply storage capacity from a PSP developed on a self-identified site or an existing commissioned PSP. In this case, the project may be developed on a finance own operate basis for a period of 15-25 years.

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