JSW Energy has won the bid to set up a 125 MW/500 MWh standalone battery energy storage system (BESS) in Kerala, India, through a tender floated by the Solar Energy Corporation of India (SECI). The company quoted a tariff of ₹441,000 (~$5,057)/MW/month, which is the lowest among all the bidders. The project is expected to be commissioned within 15 months of signing the battery energy storage purchase agreement (BESPA) and achieve financial closure within nine months of signing the BESPA.
The project will be connected to the Mylatti 220 kV substation in Kasaragod and will meet the grid stability requirements of the Kerala State Electricity Board. The company must ensure that the BESS is available for at least one operational cycle per day, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC roundtrip efficiency of 85% monthly.
The project can be commissioned in three phases, with the initial phase covering 50% of the MWh capacity and up to two additional phases thereafter. The company must also employ commercially established and operational technologies to minimize technology risks and ensure compliance with guidelines and standards.
JSW Energy will be eligible for viability gap funding of up to ₹2.7 million (~$30,963)/MWh or 30% of the project’s capital cost, whichever is lower. This funding will help the company to finance the project and make it more viable. The project will also create employment opportunities and contribute to the growth of the renewable energy sector in India.