NVVN Launches 250 MW / 500 MWh Battery Storage Tender to Boost Kerala’s Grid Stability – EQ
In Short : NTPC Vidyut Vyapar Nigam (NVVN) has issued a tender for a 250 MW / 500 MWh standalone Battery Energy Storage System (BESS) in Kerala, near the 220 kV Brahmapuram substation. Supported by ₹900 million Viability Gap Funding, the project aims to enhance grid stability and renewable integration. Bids are due by November 11, 2025, with performance and financial guarantees required from developers.
In Detail : NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of NTPC Limited, has issued a Request for Selection (RfS) for a 250 MW / 500 MWh standalone Battery Energy Storage System (BESS) in Kerala. The project is being developed on behalf of the Kerala State Electricity Board (KSEBL) to strengthen grid reliability.
The BESS will be located near the 220 kV Brahmapuram substation in Kochi, enabling seamless integration with the State Transmission Utility (STU) network. Its strategic location ensures efficient energy transfer and stable grid operation across Kerala.
Designed for a two-hour charge and discharge cycle, the system will provide flexible energy storage solutions. It will help meet peak demand periods, improve load balancing, and optimize the use of renewable energy generated across the state.
To encourage participation, the project benefits from Viability Gap Funding (VGF) under the Power System Development Fund (PSDF). The VGF support totals ₹900 million, or ₹1.8 million per MWh, reducing upfront financial burdens for developers and promoting competitive bidding.
Interested developers must submit bids by November 11, 2025. The process includes an earnest money deposit of ₹480,000 per MW, a document fee of ₹22,500, and a processing fee of ₹1.35 million plus applicable taxes, ensuring serious and capable participants.
Successful bidders are required to provide a performance bank guarantee of ₹1.2 million per MW. This financial safeguard ensures accountability and timely delivery while protecting project interests and facilitating smooth execution of the BESS infrastructure.
The implementation of this BESS project will enhance Kerala’s power system resilience. It will enable rapid response to fluctuations in renewable generation, stabilize voltage and frequency, and reduce reliance on conventional peaking power plants.
This project represents a key step in integrating advanced energy storage solutions into India’s electricity network. It highlights the growing role of BESS technologies in supporting renewable energy penetration and improving overall grid efficiency.
