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JSW Renew set to bag SECI’s 1GWh battery storage systems project

SECI’s battery storage projects, which will be the largest standalone project in the world, will be set up through the build-own-operate-transfer (BOOT) route.

August 26, 2022 / 05:56 PM IST
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Sajjan Jindal-led JSW Energy Ltd’s arm JSW Renew Energy is slated to bag a contract for setting up a pilot project of 1 gigawatt hour (GWh) standalone battery energy storage systems (BESS), after it emerged the lowest bidder on Aug 25 in the tender launched by Solar Energy Corporation of India (SECI), officials in the know told Moneycontrol.

The bid for the project was a close fight, with JSW Renew clinching it with a bid of Rs 10.8350 lakh per megawatts (MW), with Acme Solar coming a close second with a bid of Rs 10.8449, said an official from SECI. The bid result will be taken up for board approval and only then will SECI issue a letter of award to JSW Renew.

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JSW spokesperson declined to comment in the absence of a formal communication from SECI.

As India scales up its renewable energy capacity, battery storage systems are gaining importance as a solution to reduce intermittency of renewable energy projects to provide continuous power. In July, India added an Energy Storage Obligation to its existing Renewable Purchase Obligation policy for the first time.

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SECI’s battery storage projects, which will be the largest standalone project in the world, will be set up through the build-own-operate-transfer (BOOT) route.

SECI had invited bids in April for setting up the BESS project in a single location with two units each of 500 MWh capacity. The state-run entity has identified a location in the vicinity of Fatehgarh-III substation in Rajasthan. Land identification and allocation for the projects will be done by the transmission licensee owning the substation. Subsequently, SECI would provide the land to the developer on lease/right-to use basis, in agreement with the transmission licensee.

The project is scheduled to be completed in 18 months. As per the bid document, 60 percent of the contracted capacity will be available to SECI while the remaining 40 percent will be managed by the developer.
Rachita Prasad heads Moneycontrol’s coverage of conventional and new energy, and infrastructure sectors. Rachita is passionate about energy transition and the global efforts against climate change, with special focus on India. Before joining Moneycontrol, she was an Assistant Editor at The Economic Times, where she wrote for the paper for over a decade and was a host on their podcast. Contact: rachita.prasad@nw18.com
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