KREDL Floats 250 MW Solar + 1.1 GWh BESS Tender to Deliver Dispatchable RE for Karnataka

Karnataka Renewable Energy Development Limited (KREDL), the state nodal agency for renewable energy, has issued a landmark Request for Selection (RfS) to develop a 250 MW solar photovoltaic (PV) project integrated with a 250 MW / 1,100 MWh Battery Energy Storage System (BESS) under tariff-based competitive bidding. The project will be situated in the Ryapte region of Pavagada in Tumkur district, Karnataka.

This initiative under “KREDL Solar + BESS Tranche-I” aims to facilitate round-the-clock renewable energy supply during peak demand periods and reduce grid curtailment losses, marking a critical step in India’s transition toward dispatchable clean energy.

Project Overview and Scope

The tender seeks selection of a single Solar Power Developer (SPD) or Renewable Power Developer (RPD) on a Build-Own-Operate (BOO) basis to implement the 250 MW solar PV project co-located with 1,100 MWh BESS capacity. The project is structured to deliver firm peak power to Karnataka’s state distribution companies (ESCOMs) through a 25-year Power Purchase Agreement (PPA).

The project will be located in Annadanapura and Reddivarahalli villages, under Tirumani Gram Panchayat in the Tumkur district. KREDL will lease 1,000 acres of land at a base rate of ₹30,000 per acre per annum with a 5% biennial escalation. Additionally, the SPD must pay a Local Area Development Charge of ₹5 lakh per MW over five years.

Technical Configuration

• Installed Solar Capacity: 250 MW (AC/DC as applicable)

• Battery Energy Storage: Minimum 1 MW / 4.4 MWh per MW of solar = 250 MW / 1,100 MWh total

• Minimum Annual CUF: 19% declared; variation permitted within +10% and -15% for the first 10 years (min. 16%), and +10% and -20% thereafter

• Energy Dispatch from BESS: Daily dispatchable energy ranges from 0.89 GWh (Year 1) to 0.59 GWh (Year 25), factoring system degradation

Grid Integration and Scheduling

The project shall connect at 220 kV KSPDCL PSS-6 in the solar park, which ties into the 400/220 kV PGCIL Tumkur (Pavagada) ISTS Substation.The RPD is fully responsible for obtaining connectivity, building evacuation infrastructure, and handling scheduling, losses, SLDC charges, and forecasting in accordance with applicable CERC/KERC regulations.

Power metering and delivery will be at the 220 kV side of the CTU interface, and all costs till that point are borne by the RPD.

Financial Terms and Security Instruments

• RfS Document Fee: ₹41,300 (including GST)

• Bid Processing Fee: ₹25 lakh + 18% GST

• EMD Requirement: ₹9.54 lakh per MW of solar + ₹3.34 lakh per MWh of BESS

• Performance Bank Guarantee (PBG): ₹23.85 lakh per MW (solar) + ₹8.35 lakh per MWh (BESS)

Bank Guarantees or Payment on Order Instruments (POI) from approved institutions are acceptable.

Eligibility and Qualification

• Project Configuration: Single package of 250 MW with 1.1 GWh BESS (no partial bids)

• Financial Qualification:

  • Net worth requirement = ₹1.5 crore/MW (solar) + ₹0.75 crore/MWh (BESS)

    
    

    Minimum Net Worth: ₹562.5 crore

• Technical Experience: While not mandating prior BESS experience, technical compliance and proven project execution capabilities are expected.

Timelines and Execution Milestones

• Scheduled Commercial Operation Date (SCOD): 24 months from PPA Effective Date

• Grace Period: Additional 6 months allowed with daily penalty via partial PBG encashment

• Early Commissioning: Allowed; power purchase by ESCOMs during solar hours at zero cost, and during non-solar hours at PPA tariff (subject to ESCOMs’ acceptance)

Key Operational Conditions

• BESS Charging: Must be charged exclusively from the co-located solar PV. A 5% annual allowance from external green market sources is permitted.

• Dispatch Obligation: 100% of scheduled daily dispatch from BESS must be met.

  Penalty for shortfall = ₹10/kWh or the highest discovered market rate, whichever is higher.

• Curtailment Management: RPD must manage scheduling and storage to avoid curtailment due to grid constraints—no deemed generation will be compensated.

Strategic Significance

This tender comes at a time when hybrid solar + storage models are gaining traction across India. With a total of 79.3 GW solar projects tendered and 48.1 GW auctioned in 2024, this KREDL initiative represents one of the most advanced state-level procurements of dispatchable renewable energy. It closely follows recent SECI Tranche XVII tenders for 2 GW solar with 4 GWh BESS and aligns with national goals for firm renewable energy and grid stability.

KREDL’s 250 MW Solar + 1.1 GWh BESS tender offers developers a significant opportunity to lead Karnataka’s next phase of renewable energy integration. The project’s configuration, robust commercial framework, and alignment with national storage mandates make it a flagship model for grid-interactive clean energy projects across India.

#BESS, #Solar, #Karnataka, #Storage, #KREDL, #RESI, #MNRE, #MoP, #Grid, #PowerMarket

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