The Ministry of Power has issued tariff-based competitive bidding (TBCB) guidelines for procuring stored energy from pumped storage projects (PSPs).
The guidelines define two procurement modes: Mode 1 involves PSPs developed on sites identified by the procurer under a build-own-operate-transfer model, while Mode 2 allows procurement from PSPs identified by bidders or already commissioned under a build-own-operate model. Minimum bid capacities are set at 50 MW for inter-state transmission system projects and 10 MW for intra-state projects. Applicants must demonstrate infrastructure development experience and meet financial eligibility criteria, including a net worth of at least 20 percent of the PSP’s estimated capital cost. Upon selection, the procurer and bidder will sign a power purchase agreement, with tariff adoption required within 60 days of issuing the letter of award. The developer is responsible for securing transmission connectivity and meeting financial closure within 12 months, with penalties for delays.