Punjab's Mega 250 MW/500 MWh BESS Tender: A Game-Changer for India's Energy Storage Revolution

• Published
• By Anupam Nath

Punjab is charging ahead in India's clean energy transition with a landmark tender for 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) in Bhatinda. Issued by the Punjab State Power Corporation Limited (PSPCL), this Request for Selection (RfS) marks a pivotal shift from fossil fuels, repurposing the site of the decommissioned 460 MW Guru Nanak Dev Thermal Project. Announced on January 14, 2026, bids close on February 13, with openings on February 16—offering developers a lucrative entry into one of India's fastest-growing energy storage markets.

What makes this tender irresistible? A viability gap funding (VGF) of ₹1.8 million (~$19,946) per MWh sweetens the deal, addressing capex hurdles for large-scale BESS. Bidders can quote from a minimum 50 MW/100 MWh up to the full capacity, but must front earnest money of ₹471,000 (~$5,219)/MW, plus fees. Selected developers face a performance bank guarantee of ₹1.18 million (~$13,048)/MW and must deliver within 18 months, interconnecting at the 220 kV Bhatinda substation. They'll handle everything from approach roads to fire safety, ensuring on-demand charge/discharge via PSTCL's grid.

Technologically agnostic yet pragmatic, the RfS mandates 20% local content, 95% monthly system availability, 85% AC-to-AC round-trip efficiency, and noise below 80 dB. Only proven, commercially operational tech is allowed to minimize risks. Penalties are steep: commissioning delays cap at 10% liquidated damages (LD), with full PBG encashment for failures. Financially, bidders need ₹4.71 million (~$52,192)/MW net worth, plus turnover/profit criteria or bank lines of credit.

This isn't isolated—it's part of India's BESS boom. Echoing Rajasthan's 1,600 MW/6,400 MWh solar+BESS at Pugal Park and Andaman's 20 MWh project, Punjab's move aligns with the 500 GW renewable target by 2030. BESS will stabilize grids amid surging solar/wind integration, enabling peak power and EV growth. Expect heavyweights like Adani Green, Tata Power, NTPC, and Suzlon to bid, potentially slashing tariffs via VGF.

For investors and analysts, this signals robust policy support. Punjab's grid modernization, paired with national PLI schemes for batteries, positions BESS as the next goldmine. Watch for bid outcomes—they could redefine northern India's energy landscape.