Tender Issued for 500 MWh Battery Energy Storage System
Bihar has taken a significant step in energy storage development. Efforts to establish a 2000 MWh battery energy storage system in the state have gained momentum, with a tender already issued for a 500 MWh battery energy storage system.
Request for Approval of 2000 MWh Project
State Energy Minister, Mr. Bijendra Prasad Yadav, recently met with Union Energy Minister, Mr. Manohar Lal Khattar, and submitted a letter requesting approval and cooperation for setting up the 2000 MWh battery energy storage system.
Ongoing Energy Storage Initiatives in Bihar
Mr. Yadav stated that Bihar is already working on the development of the country’s largest battery energy storage system, with a total capacity of 495 MWh. This initiative is accompanied by two large solar power projects of 301 MW each at Kajra in Lakhisarai.
Significance of the 500 MWh Battery Energy Storage System
The proposed 500 MWh battery energy storage system will help meet the state’s rising electricity demand, particularly during peak hours. This initiative aims to ensure affordable electricity supply while addressing the increasing demand efficiently.
Government’s Vision and Support for the Project
Energy Minister Bijendra Prasad Yadav highlighted that this initiative aligns with the visionary leadership of Honorable Chief Minister Nitish Kumar. The project aims to provide uninterrupted and cost-effective electricity to the public, thereby enhancing economic empowerment.
The Bihar government has prioritized battery energy storage development and approved the 500 MWh project on state grid sub-centre land. A tender has been issued to select the implementing agency.
Industry Participation and Competitive Bidding Process
Twelve major companies have expressed interest in the project during a pre-tender meeting. Some of the notable participants include Tata Power, JSW Energy, Schneider Electric, Avada Company, and Pace Power. The project will be implemented through a tariff-based competitive tender process, ensuring affordable rates for stored electricity and swift project completion without financial burden on the state government.
Funding Structure and Implementation Plan
The Central Government will provide up to 30% of the total cost, or Rs 27 lakh per MWh, through the Viability Gap Funding Scheme. The remaining 70% will be covered by the storage system developer. In the first phase, the project will utilize available land at 16 identified grid sub-stations to keep storage electricity rates low.
A total of Rs 135 crore will be allocated to developers in five installments for 500 MWh implementation. The project is expected to be completed within 18 months, followed by a 12-year operation and storage agreement with the selected agencies.
Benefits of the Battery Energy Storage System
The system will allow surplus electricity generated during the day to be stored and used during peak hours. Since electricity costs are significantly higher during peak hours, this project will help reduce expenses for power distribution companies and ensure consumers receive electricity at lower rates.
This initiative will also contribute to fulfilling the Renewable Purchase Obligation by promoting the use of renewable energy sources.
Expansion of Solar Energy Projects in Bihar
Bihar is rapidly expanding its solar energy capacity, with 1920 MW of solar energy already secured. The development of a battery energy storage system will complement these renewable energy projects, ensuring continuous electricity availability while providing financial benefits to distribution companies.
Gratitude to the Central Government
Honorable Energy Minister Shri Yadav has expressed his gratitude to the Central Government for its prompt support in this ambitious project. This initiative marks a crucial step in Bihar’s journey toward energy security and sustainable development.
