Andhra Pradesh has issued a tender for 1,250 MW/5,000 MWh of standalone BESS with four-hour storage duration
Winning bidders will sign 12-year BESPAs with state discoms
Projects need to be set up across three locations under a build-own-operate model
Andhra Pradesh has launched a call for the deployment of 1,250 MW/5,000 MWh of standalone battery energy storage system (BESS) capacity at selected project locations across the state.
As the bid coordinator, the Andhra Pradesh Power Coordination Committee (APPCC) may procure up to 25% additional BESS capacity for each project under a green shoe option, amounting to 125 MW/500 MWh each for Projects 1 and 3, and 50 MW/200 MWh for Project 2. The tender documents state that the additional capacity will be included in the contracted capacity if allocated.
To be set up under a build-own-operate (BOO) model, the capacity will be established at three locations. Of the total, 500 MW/2,000 MWh will be located at Dr. M.V. Ramana Reddy Rayalaseema Thermal Power Plant (RTPP). Another 250 MW/1,000 MWh will come up at the Talaricheruvu RE Project, and 500 MW/2,000 MWh at the NP Kunta RE Project. The entire 1,250 MW translates into 4-hour storage capacity.
Bidders are required to design the BESS under Battery Energy Storage Purchase Agreements (BESPAs), ensuring the system can charge and discharge at a C-rate of 0.25. It must also be capable of being charged and discharged in blocks of either 50 MW/200 MWh or 100 MW/400 MWh, alone or in combination up to the total rate capacity specified for each location.
Interested BESS developers are invited to submit bids for the grid-connected projects, each of which will be tendered, evaluated, and awarded separately, with tariffs determined independently. No viability gap funding (VGF) is available for these projects.
APPCC has launched the call on behalf of AP discoms, namely Andhra Pradesh Central Power Distribution Corporation Limited (APCPDCL), Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL), and Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL).
State discoms will enter into a 12-year BESPA with the winning bidders to secure energy storage facilities on an on-demand basis.
APPCC issued the tender on October 7, 2026. It will accept bids till November 23, 2026. Details of the tender are available on the APEPDCL website.
Under its Integrated Clean Energy Policy 2024, Andhra Pradesh targets 25 GWh of BESS and 22 GW of pumped storage hydropower capacity by 2029 to accommodate growing renewable energy capacity. It also aims to add 78.5 GW of solar and 35 GW of wind capacity between 2024 and 2029.
