FCC

KPTCL Awards 700 MWh in 1 GWh Energy Storage System Tender

2025-04-08

The Karnataka Power Transmission Corporation (KPTCL) has finalised the results of its 500 MW/1 GWh battery energy storage system (BESS) tender, awarding a total capacity of 350 MW/700 MWh to three companies. As part of the allocation, Sarala Project Works has been awarded a capacity of 50 MW/100 MWh at a tariff of Rs 249,000 per MW of project nominal power per month. Pace Digitek has secured the largest share with 250 MW/500 MWh, while Oriana Power has received 50 MW/100 MWh. Both Pace Digitek and Oriana Power will operate at a tariff of Rs 254,000 per MW of project nominal power per month.

The selected firms will implement the BESS projects on a build-own-operate (BOO) basis. These installations will be located near identified substations across Karnataka. The primary objective is to enhance grid stability by mitigating power fluctuations and addressing peak demand challenges.

The projects will play a vital role in supporting the state’s growing renewable energy portfolio, especially in balancing variable generation from solar and wind sources. They are also expected to contribute significantly to improving the reliability and efficiency of power distribution.

In addition to their strategic importance, the awarded BESS projects are eligible for central financial support under the viability gap funding (VGF) scheme. This incentive aims to promote large-scale deployment of energy storage solutions by bridging the financial gap and encouraging private investment in sustainable energy infrastructure. News source: Renewable Watch