Karnataka Invites Bids for 250 MW Solar Project with Battery Storage at Pavagada

The Karnataka Renewable Energy Development Ltd. (KREDL) has kicked off a major clean energy initiative with a fresh tender for a 250 MW solar power project paired with a 1100 MWh Battery Energy Storage System (BESS) at the Pavagada Solar Park in Tumkur district.

The Request for Selection (RfS) seeks solar developers to build, own, and operate the project, with power purchase secured under a 25-year PPA by Karnataka’s ESCOMs.

The project’s goal is to deliver reliable, dispatchable peak power, helping stabilise the grid and meet the Ministry of Power’s 2023 policy push for firm renewable energy through storage solutions.

Developers will get access to 1,000 acres of land across Annadanapura and Reddivarahalli villages on lease, priced at INR 30,000 per acre per year, escalating by 5 percent every two years. A Local Area Development Charge of INR 5 lakh per MW must also be paid in five equal annual installments after commercial operations begin.

The project has to be commissioned within 24 months from the date of PPA signing, with an added six-month grace period, though penalties apply if deadlines slip. The bidding process follows a single-stage, two-envelope e-tender format through the ISN-ETS platform.

The RfS document is priced at INR 41,300 including GST, while the non-refundable bid processing fee is INR 25 lakh plus 18 percent GST. To qualify, developers must also furnish an Earnest Money Deposit of INR 59.35 crore and a hefty Performance Bank Guarantee of INR 148.42 crore.

KREDL mandates that at least 80 percent of the annual solar generation be stored and dispatched through BESS. If developers fall short on delivering the committed daily dispatchable energy, they’ll face stiff penalties, INR 10 per kWh or the highest discovered market price, whichever is greater. Each entity is allowed to bid for only one project capacity of 250 MW, and power offtake will begin only after all commissioning and grid compliance checks are cleared.