New Delhi: The Solar Energy Corporation of India Limited (SECI) has invited bids for the short-term utilisation of a 100 MWh standalone Energy Storage System (ESS) as India continues to integrate higher volumes of renewable energy into the power grid.
The tender covers a 50 MW/100 MWh energy storage system with two hours of storage capacity. SECI will select an Energy Storage System Developer (ESSD) to provide the storage capacity on an “on-demand” basis.
The initiative is aimed at supporting grid operations, peak demand management, energy shifting and grid balancing requirements.
SECI Issues Tender for 50 MW/100 MWh Energy Storage System
SECI issued the Request for Selection (RfS) on August 28, 2026, inviting eligible developers to participate in the procurement process.
The tender will follow a tariff-based competitive bidding process with a single-stage, two-envelope structure, followed by an electronic Reverse Auction (e-RA).
The selected developer will provide the required energy storage services to SECI under an Energy Storage Purchase Agreement (ESPA).
Key Tender Details
- Energy Storage Capacity: 100 MWh
- Power Capacity: 50 MW
- Storage Duration: 2 hours
- Contract Period: November 1, 2026 to October 31, 2027
- Bid Process: Tariff-based competitive bidding
- Reverse Auction: Electronic Reverse Auction (e-RA)
- RfS Date: August 28, 2026
Only Operational Energy Storage Projects Eligible
Participation in the tender has been restricted to operational energy storage projects that meet specific eligibility requirements.
Eligible projects must:
- Already be commissioned.
- Be interconnected with the Inter-State Transmission System (ISTS).
- Have declared their Commercial Operation Date (COD) on or before the bid submission deadline.
This requirement ensures that the selected ESSD can provide the contracted storage services within the specified timeline.
SECI Sets Bid Fees and Financial Requirements
SECI has prescribed various fees and financial security requirements for bidders participating in the tender.
Financial Requirements for Bidders
- Document fee: ₹50,000 plus applicable GST.
- Bid processing fee: ₹10 lakh plus applicable GST.
- Earnest Money Deposit (EMD): ₹2.40 crore.
- Performance Bank Guarantee (PBG): ₹6 crore.
The document fee and bid processing fee are required to be paid through NEFT or RTGS.
The EMD can be submitted through a Bank Guarantee or Insurance Surety Bond and must remain valid for six months from the bid submission deadline.
The successful bidder will be required to furnish the ₹6 crore Performance Bank Guarantee within 10 days of receiving the Letter of Award (LoA).
SECI to Control Charging and Discharging Schedule
Under the operating framework, SECI will have full rights to schedule the charging and discharging of the ESS.
The system may be operated for one to two cycles per day, subject to a maximum of 485 operational cycles during the contract period.
The selected developer will also have to meet specified performance standards.
Performance Requirements
- Minimum 95% annual system availability.
- Minimum 85% monthly AC-to-AC Round-Trip Efficiency (RtE).
- Maximum of 485 operational cycles during the contract period.
- ESS operation of one to two cycles per day, as scheduled by SECI.
Penalties for ESS Underperformance
The tender framework includes financial penalties for failing to meet the prescribed availability and efficiency requirements.
If the required system availability is not achieved, liquidated damages will be calculated at twice the monthly capacity charges for the unavailable capacity.
In case the monthly Round-Trip Efficiency falls below 85%, liquidated damages of ₹3.50 per kWh will apply to the excess conversion losses.
For an RtE below 70%, SECI will withhold the entire monthly tariff payment, in addition to applicable penalties.
Bids to Be Evaluated on Monthly Capacity Charge
Bidders will quote a single monthly capacity charge in ₹/MW/month. The quoted tariff will form the basis for evaluation under the competitive bidding process.
The agreement will become effective 20 days after the Letter of Award or on October 31, 2026, whichever is earlier.
This will enable the selected ESSD to commence storage services from November 1, 2026.
Energy Storage Tender to Support Renewable Energy Integration
The SECI initiative comes as India increases its reliance on renewable energy sources such as solar and wind, which can create fluctuations in power generation and increase the need for flexible grid resources.
The standalone ESS is expected to support:
- Peak demand management
- Energy shifting
- Grid balancing
- Improved power system flexibility
- Integration of increasing volumes of renewable energy
Energy storage systems can help store electricity when generation is available and make it available when required, thereby supporting more flexible and reliable grid operations.
About SECI
Solar Energy Corporation of India Limited (SECI) is a Navratna Central Public Sector Enterprise under the Ministry of New and Renewable Energy (MNRE), Government of India. SECI plays a key role in the development and implementation of renewable energy projects and schemes in India, including solar power, energy storage and other clean-energy initiatives.
