JSW emerges lowest bidder for pilot battery storage mega tender

Sajjan-Jindal-led JSW Energy has emerged as the lowest bidder in the pilot large scale battery storage auction with a winning bid of Rs 10.84 lakh per MW. The battery storage auction, concluded late on Thursday by SECI, is one of the largest in the world.
Eight companies including Acme Solar, Hartree Partners Singapore, Eden Renewable Vavin Pvt led, Sterlite Power Transmission, NTPC Renewable Energy, Renew Power and Azure Power were in race for the contracts.

Acme Solar stood a close second with a bid of Rs Rs 10.85 lakh per Mw in the auctions, while the other bids were higher.

The tender is for two battery storage projects at a single site at Fatehgarh-III substations in the state of Rajasthan. Land will be provided on a lease by SECI in agreement with the Transmission Licensee.

SECI will enter into a battery energy storage purchase agreement with winning bidders. The systems will be delivered on a build, own, operate and transfer basis and once commissioned,

Under the contract, 60% of the capacity is contracted with SECI, while 40% can be sold by the selected bidder in market.

India has recently added energy storage obligation on its power distribution companies along with renewable purchase obligations. The nergy storage obligation has been pegged at 1% for FY24 to be scaled up to 4% in FY30.