PSPCL Finalizes Auction for 500 MW/1,000 MWh Standalone Battery Energy Storage Systems

Auction Results

Punjab State Power Corporation Limited (PSPCL) has concluded the procurement process for standalone Battery Energy Storage Systems (BESS), awarding a total capacity of 500 MW / 1,000 MWh (1 GWh). The auction was conducted under an efficient procurement cycle, progressing from the initial tender issuance on January 13, 2026 (RfS No. 59 /PSPCL/1000MWh/ELEC/BIO-43/(BESS-II)) to the final result announcement on May 15, 2026.

Winning Bidders and Discovered Tariffs

The auction results established a lowest tariff of ₹3.35 Lakh/MW/Month. While Rama Reflection India and Ceigall India shared the same tariff of ₹3.44 Lakh/MW/Month, the latter’s 100 MW allocation was determined by the bucket-filling method to reach the total tender capacity.

PSPCL BESS Auction Winners & Tariffs

Under the established allocation logic, Ceigall India secured the residual 100 MW capacity as the final bidder in the merit order required to fulfill the 500 MW requirement.

Financial and Legal Framework

The procurement is governed by specific financial entry barriers and long-term legal obligations:

• Earnest Money Deposit (EMD): INR 4,71,000 per MW.
• Performance Bank Guarantee (PBG): INR 11,77,500 per MW.
• Bid Processing Fee: INR 3,00,000 + applicable GST.
• RfS Document Cost: INR 50,000 + applicable GST.
• Bid Validity: The submitted bids remain valid for a period of 12 months, expiring on February 13, 2027.

Successful bidders will enter into a 12-Year Battery Energy Storage Purchase Agreement (BESPA). The Effective Date of the BESPA is defined as the 90th day following the issuance of the Letter of Award (LoA).

Technical and Operational Specifications

Project developers are mandated to meet the following operational standards and grid requirements:

• System Availability: A guaranteed minimum monthly availability of 95% is required.
• Operational Duty: The BESS must be capable of completing 2 full operational cycles per day.
• Grid Control and Interconnection: PSPCL maintains connectivity and scheduling control. Metering will occur at the 400kV Fatehgarh (ATL) PS interconnection point. Notably, this interconnection point is located in Rajasthan, establishing an interstate transmission framework for the Punjab-based utility.
• Software Compliance: All systems must utilize domestic Energy Management System (EMS) software.
• Phased Commissioning: Developers may utilize “Unit/Part Commissioning” rules. The first phase must be at least 50 MW / 100 MWh, with the total project limited to a maximum of three phases.

Project Implementation Timeline

Following the Effective Date, developers must adhere to “Conditions Subsequent” to maintain project eligibility:

• Financial Closure: Developers must secure 100% of the project cost within nine months of the Effective Date. Funding via internal resources must be supported by a formal Board Resolution, while external funding requires firm loan commitments.
• Technical Documentation: Bidders must submit a Detailed Project Report (DPR) specifying the final project configuration and commissioning schedules.

The Expiry Date for the 12-year agreement is calculated from the Scheduled Commissioning Date (SCD) or the date of full commissioning, whichever occurs later.

Administrative and Corporate Data

Official administrative oversight for this project is managed by the Office of Chief Engineer/NRSE & Thermal Designs, PSPCL, Patiala.

• Corporate Identity Number (CIN): U40109PB2010SGC033813
• Signatory Authority: Superintendent Engineer/Electrical, Thermal Design, Shakti Vihar, PSPCL, Patiala.