NTPC, Tata Power, Opera win bids in NHPC’s 125 MW BESS tender in Kerala

NHPC Limited has announced the winning bidders for its 125 MW/500 MWh standalone battery energy storage system (BESS) tender in Kerala under Tranche I, issued in January 2025.

NTPC Green Energy emerged as the largest awardee, securing two contracts: 40 MW/160 MWh at Sreekantapuram substation with a tariff of Rs 434,000 per MW per month, and another 40 MW/160 MWh at Pothencode at Rs 457,000 per MW per month.

Opera Energy won a 15 MW/60 MWh project at Mulleria with a tariff of Rs 438,000 per MW per month. Tata Power Renewable Energy Limited was awarded a 30 MW/120 MWh project at Areacode at the same tariff.

According to NHPC’s conditions, developers must commission the awarded projects within 18 months from the date of signing the battery energy storage purchase agreement. Each project is eligible for viability gap funding of Rs 2.7 million per MWh or 30 per cent of the capital cost, whichever is lower.

Before commissioning any part of the project, developers are required to deposit Rs 500,000 per MWh as security. They must ensure at least one operational cycle per day, maintain a minimum monthly system availability of 95 per cent, and guarantee an AC-to-AC round-trip efficiency of 85 per cent per month.

Battery energy storage systems are essential for enhancing grid flexibility, especially as Kerala scales up its renewable energy capacity. They allow the grid to absorb surplus solar power during peak production and release it during evening demand peaks.