KREDL Invites Bids for 450 MW/900 MWh Standalone BESS Projects in Karnataka; Deadline June 29

Tender Announcement and Primary Objectives

In a decisive move to address the inherent intermittency of its vast variable renewable energy (VRE) portfolio, the Karnataka Renewable Energy Development Limited (KREDL) has issued a tender for the development of 450 MW/900 MWh of standalone Battery Energy Storage Systems (BESS) across the state. This strategic procurement is designed to bolster grid resilience and ensure the optimal utilization of Karnataka’s renewable resources by shifting energy to peak demand periods. The project, which is being implemented with Viability Gap Funding (VGF) support under the state component, requires developers to submit their bids by June 29, 2026. This initiative represents a significant step in the state’s transition toward a storage-backed, 24/7 clean energy grid.

Technical Specifications and Capacity Allocation

The projects are structured under a Build-Own-Operate (BOO) implementation model with a total duration of 2 hours, reflecting a 1:2 power-to-energy ratio. The cumulative capacity is distributed across two strategic load centers to optimize regional grid stability. While separate state initiatives, such as the 3 GW solar push for agriculture, identify Pavagada and other hubs for storage integration, this specific 450 MW tender is concentrated at the Huliyurdurga and Kushtagi substations.

The capacity breakdown and interconnection details are as follows:

Grid Connectivity and Substation Integration

Connectivity for these standalone BESS facilities will be established through the intra-state transmission network. The Karnataka Power Transmission Corporation Limited (KPTCL), acting as the State Transmission Utility (STU), is responsible for land identification and allocation in the vicinity of the identified substations.

Operationally, the primary objective is to make the storage capacity available to the State Load Despatch Centre (SLDC) on an “on-demand” basis. Under this framework, the SLDC will exercise full control over the scheduling of charging and discharging on behalf of state ESCOMs. Critically, the BESS units may be charged from any energy source, including conventional power, to ensure system readiness. This operational model aligns with the draft framework proposed by the Karnataka Electricity Regulatory Commission (KERC), which introduces “solar-hour” and “non-solar-hour” access categories to maximize transmission infrastructure efficiency and streamline the scheduling of storage assets during peak and off-peak cycles.

Key Bidding and Financial Parameters

KREDL will select developers through a tariff-based global competitive bidding process, followed by an e-reverse auction. Prospective bidders must adhere to the following stringent financial and technical requirements:

• Procurement Method: Tariff-based global competitive bidding focused on the storage capacity charge (per MW per month).
• Financial Support: Projects are eligible for Viability Gap Funding (VGF) to bridge the cost-gap and ensure competitive tariffs for state utilities.
• Manufacturing Mandate: In a push for domestic supply chain security, it is mandatory that the Interested Party (IP) or its subsidiary possesses an existing facility for the manufacturing of cells or batteries within India.
• Financial Benchmarks: Bidders must demonstrate a robust financial standing, including an average annual turnover of at least ₹780 crore over the last three financial years. Additionally, the average net worth of the bidder must exceed ₹500 crore for the same three-year period.
• Experience Requirements: Applicants must have previously commissioned, or be in the process of commissioning, Battery Energy Storage Systems to prove technical competency.

Closing and Submission Guidelines

The bid submission window is officially open, with the final deadline for uploading proposals to the designated e-tendering portal set for June 29, 2026.

TENDER PORTAL: https://kppp.karnataka.gov.in/#/portal/portal-home

Developers are required to provide a comprehensive Technical Data Sheet as part of their submission. This must include verified metrics for Round Trip Efficiency (AC-AC), Auxiliary Consumption, Response Time (ms), Depth of Discharge (DoD), and yearly degradation limits. All systems must comply with international and national safety and performance standards, including UL, IEC, and BIS. For detailed bidding instructions and to download the full Request for Selection (RfS) documents, interested parties should visit the KREDL official website or the REC e-wizard portal. Reiteration of the final bid submission date remains June 29, 2026.