OERC Approves GRIDCO’s 125 MW / 500 MWh BESS Procurement; Coal India and Onward Solar Named Winning Bidders

The Odisha Electricity Regulatory Commission (OERC) has approved GRIDCO’s procurement of 125 MW / 500 MWh of standalone Battery Energy Storage Systems (BESS). Coal India Limited and Onward Solar Power are the winning bidders for the project capacity. This procurement is established through a Battery Energy Storage Purchase Agreement (BESPA) with a duration of 15 years from the Scheduled Commissioning Date (SCD).

Project Specifications and Technical Detail

• Total Capacity: 125 MW / 500 MWh (125 MW x 4 hours).
• Configuration: Grid-connected standalone Battery Energy Storage Project.
• Interconnection: Connection is at the 33kV bus-bar of designated substations.
• Tariff Range: ₹3.04 per kW per month to ₹3.75 per kW per month.
• Operating Requirement: Systems must be available for a minimum of 1 operational cycle per day. GRIDCO may utilize the BESS for up to 2 cycles per day, subject to an annual limit of 420 cycles.
• Cycle Definition: A cycle consists of charging the BESS to the contracted capacity followed by discharge, including any intervening resting periods.

Capacity Allocation and Bidder Breakdown

Locations and Grid Integration

The BESS installations are situated at the 33kV bus-bars of six substations: Padampur, New Bolangir, Bhatli, Basta, Narendrapur, and Tentuli Khunti. The BESS Developer is responsible for the UGFO/Approach cable (minimum 12 fibers) and terminal equipment, including STM-16 Fiber Optic Terminal Equipment (FOTE), Fiber Optic Distribution Panel (FODP), and Phasor Measurement Unit (PMU) at the BESS end.

Regulatory and Financial Framework

The Solar Energy Corporation of India (SECI) conducted the bidding process on behalf of GRIDCO. The OERC is responsible for the adoption of the discovered tariffs. According to the BESPA, the OERC must adopt the tariff within 120 days of the Effective Date (the date of signing the agreement). A delay beyond this 120-day period results in a day-for-day extension of the Scheduled Commissioning Date.

Financial support is provided via Viability Gap Funding (VGF) under the Power System Development Fund (PSDF) at a rate of ₹18 Lakh per MWh. VGF is disbursed in three tranches:

• 20% at Financial Closure.
• 50% at Commercial Operation Date (COD).
• 30% one year after COD.

Developers must submit a capital cost certificate from a Statutory Auditor within six months of the COD.

Key Contractual Provisions (BESPA)

1. Commissioning Timeline: Projects must be commissioned within 18 months from the Effective Date of the BESPA.
2. Availability Guarantee: The developer must maintain a Minimum Annual Average Availability of 95%. Shortfalls result in liquidated damages equivalent to twice the capacity charges for the unavailable capacity.
3. Round Trip Efficiency (RtE): The system must maintain a minimum AC-to-AC RtE of 85% on a monthly basis.
4. Degradation Schedule: The minimum dispatchable capacity is 97.5% at the end of Year 1, 87.5% at the end of Year 5, 75.0% at the end of Year 10, and 62.5% at the end of Year 15.
5. VGF Security: The developer must provide a Bank Guarantee or Insurance Surety Bond equivalent to the value of the VGF to be disbursed. This is separate from the Performance Bank Guarantee of ₹22.5 Lakh per MW.