AP floats its first stand-alone battery energy storage system

Vijayawada:In a significant step towards strengthening its energy infrastructure, Andhra Pradesh has announced its first standalone Battery Energy Storage System (BESS) tender with a capacity of 500mw/1000mwh under the Viability Gap Funding scheme.

This initiative, spearheaded by the state government, is part of India's larger effort to integrate renewable energy sources and enhance grid stability.

The first board meeting of NTPC Green Energy’s AngelOne was held on Wednesday at the AP Secretariat with chief minister Chandrababu Naidu in the chair. Chief secretary K Vijayanand led the discussions.

The officials said the NHPC Ltd has been nominated as a BESS Implementing Agency (BIA) by the central power ministry under the Viability Gap Funding scheme for BESS. NHPC shall enter into a battery energy storage purchase agreement with the successful bidders for availing the energy storage facility as per the terms, conditions and provisions of the RfS and BESPA.

The charging power shall be provided by the buying entity.

The officials said the energy storage facility to be procured by NHPC from the above BESS has been provisioned to be done on behalf of APDISCOMs. NHPC shall be an intermediary nodal agency for using the energy storage facility and charging/discharging the BESS in line with respective agreements with the BESSD and buying entity / APDISCOMs, based on due performance by the concerned parties.

For this tranche, 100 per cent of the awarded capacity shall be off taken by APDISCOMs / buying entity. The tender for the project was published on February 14, 2025, and the last date for submission of bid is March 19, 2025.

The project has a total capacity of 500mw/1000 mwh, with APDISCOM being the designated off-taker.

The storage system will be located near three inter-state transmission system substations in AP, including two substations at 400kV with capacities of 227mw/450mwh each at Jammalamadugu and Ghani and one substation at 22 kV with a capacity of 50mw/100mwh at Kuppam.

Developers will be provided land on a lease or right-to-use basis in Jammalamadugu, Ghani, and Kuppam.