Punjab Discom Invites Bids for 500 MW/1,000 MWh Standalone BESS
Punjab State Power Corporation (PSPCL) has issued a tender to develop 500 MW/1,000 MWh of standalone battery energy storage systems (BESS) in Punjab under the BOO model. Bid submission ends on February 13, 2026.
January 17, 2026. By Mrinmoy Dey
The projects must be set up under the build, own, operate (BOO) model. BESS plants must be connected with the STU network at the Ablowal (Patiala) and Laltonkalan (Ludhiana) substations – each with a capacity of 250 MW/500 MWh.
Bidders need to pay INR 59,000 as a cost of the bid document. They also need to deposit INR 3 lakh (plus GST) as a bid processing fee. Further, they need to furnish INR 4.71 lakh/MW as an earnest money deposit (EMD). Selected bidders must deposit INR 11.775 lakh/MW as a performance bank guarantee (PBG), prior to signing BESPA.
The last date for submission of bids is February 13, 2026. The techno-commercial bids will be opened on February 16, 2026.
The minimum bid size must be 100 MWh (50 MW x 2 hours), and the minimum Increment bid size must be 50 MW.
PSPCL will enter into a 12-year BESPA with the winning bidders.
The BESS developer must set up a BESS, with the primary objective of making the energy storage facility available to the buying entity/PSPCL for charging/discharging of the BESS, on an ‘on demand’ basis.
The charging and discharging schedule of the BESS system will be under the scope of PSPCL. The BESS must be charged by drawing power from PSPCL/PSTCL and discharged by injecting power into the PSPCL/PSTCL network.
Land will be provided on a lease/right-to-use basis to the BESSD through a suitable agreement with PSPCL/PSTCL.
The BESSD must make the BESS available for 2 operational cycles per day and must guarantee a minimum system availability of 95 percent on a monthly basis.
The application software of the energy management system (EMS) of the BESS must be developed indigenously within India. The BESSD must ensure that the BESS installed is of requisite quality and complies with best industry practices. The use of refurbished or second-hand battery cells in the project is strictly prohibited.
The noise level of the BESS system must be maintained at less than 80 decibels. Since residential colonies may be developed in the future on the land adjacent to the sites, the BESSD shall install adequate sound barriers to minimise noise emanating from the BESS system, as specified in the tender.
The net worth of the bidder must be at least INR 47.10 lakh/MW as on the last date of FY25, or as on the day at least seven days prior to the bid submission deadline.
Additionally, the bidder must have a minimum annual turnover of INR 52.92 lakh/MW during FY25. Alternatively, they must demonstrate internal resource generation capability, in the form of Profit Before Depreciation Interest and Taxes (PBDIT) for a minimum amount of INR 10.584 lakh/ MW as on the last date of FY25, or as on the day at least seven days prior to the bid submission deadline.
Alternatively, the bidder can produce an in-principle sanction letter from the lending institutions/ banks of the bidder, committing a line of credit for a minimum amount of INR 13.23 lakh/MW towards meeting the working capital requirement of the project.
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