Uttar Pradesh Power Corporation Limited (UPPCL) has initiated bidding processes for the selection of bidders to whom contracts may be awarded for setting up of 40 MWh (10 MW x 4 hrs) Battery Energy Storage System (BESS) each at five identified load centers in the state of Uttar Pradesh.
The Request for Selection (RfS) document invites proposals from qualified developers for setting up of standalone BESS for "on demand" usage under tariff-based Competitive Bidding under "BOOT" model. The UPPCL will enter into a Battery Energy Storage Purchase Agreement (BESPA) with successful bidders for the projects.
The five identified locations for BESS projects include Vrindavan in Mathura, Jalesar in Etah, Hasayan in Hathras, Dasna in Ghaziabad, and Boner in Aligarh.
With aspirations to transition to a greener energy mix and optimize power transmission infrastructure, UPPCL cites CEA's report on identification of usage of storage that identifies Pumped Hydro Storage System (PSP) and Battery Energy Storage Systems (BESS) as the commercially deployable solutions for providing requisite storage capacity.
It further notes that BESS assets can provide the required flexibility in generation apart from ensuring the resource adequacy and potential to enable better utilization of the country's transmission network and reducing network infrastructure footprint.
UPPCL has decided to utilize energy storage systems on a 'On-Demand' basis, suited to its requirements during the peak and off-peak hours. The RfS is technology agnostic on the nature of BESS being opted by the battery storage system developer (BESSD), as long as it meets the defined definition of BESS and the required performance criteria.
The BESS must be designed for interconnection with the intra-state substations identified for each project, in accordance with the prevailing CERC/UPERC regulations. They may be charged by any source of energy including conventional energy sources. Ownership of such energy source is not mandatory to be held by the BESSD, while the scope of charging and discharging of the system is with the UPPCL.
The RfS claims that land for the projects will be provided on lease or on 'right-to use' basis to the BESSD through suitable agreement with the transmission licensee, facilitated by UPPCL. BESSD are also free to avail various fiscal incentives like accelerated depreciation and concessional customs and excise duties. Already commissioned projects are not considered for the proposal, while those under commissioning will be considered.
The deadline for the submission of online bidding is declared as 24th December 2022. A pre-bid meeting for the projects has been scheduled on 9th November 2022.
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