The Andhra Pradesh Power Coordination Committee (APPCC), the state-level power sector coordination body, acting on behalf of the Andhra Pradesh Central Power Distribution Company Limited, Andhra Pradesh Eastern Power Distribution Company Limited and Andhra Pradesh Southern Power Distribution Company Limited, has invited bids for the selection of developers to set up 1,250 MW/5,000 MWh of standalone battery energy storage system (BESS) capacity across three locations in Andhra Pradesh. The proposed projects comprise 500 MW/2,000 MWh BESS at the Rayalaseema thermal power plant, 250 MW/1,000 MWh BESS at the Talaricheruvu renewable energy project and 500 MW/2,000 MWh BESS at the NP Kunta renewable energy project. The projects will be developed under the build-own-operate model through tariff-based competitive bidding. The online bid submission deadline is November 23, 2026.
According to the tender guidelines, the selected developers will be responsible for setting up, operating and maintaining the storage systems, including developing the required power evacuation and grid interconnection infrastructure. The facilities will provide storage services to the state discoms on an on-demand basis. The tender is technology-agnostic with respect to the BESS deployed. Moreover, it stipulates that at least 20 per cent of the project’s BESS procurement cost must comprise local content, including energy management system software. The scheduled commissioning deadline is 24 months from the effective date of the battery energy storage purchase agreement (BESPA) for the Rayalaseema and NP Kunta projects, and 18 months for the Talaricheruvu project. The BESPA will remain in force for 12 years from the scheduled commissioning date or the date of full commissioning, whichever is later. Additionally, the maximum green shoe capacity shall be 125 MW/500 MWh each for the Rayalaseema and NP Kunta projects, and 50 MW/200 MWh for the Talaricheruvu project.
Furthermore, the bidders are required to submit an earnest money deposit of Rs 5 million per MW of project capacity and a document fee of Rs 300,000, along with GST. Successful bidders must furnish a performance bank guarantee of Rs 10 million per MW before signing the BESPA. According to the financial eligibility criteria, the bidders must have a minimum net worth of Rs 15 million per MW of quoted capacity, based on the previous financial year (FY) or at least seven days before the bid submission deadline. They must also demonstrate a minimum annual turnover of Rs 15 million per MW of quoted capacity for the previous FY. Under the technical eligibility criteria, bidders must have commissioned and operated either at least 400 MWh of grid-connected BESS capacity or 1 GW of grid-connected power projects.
