MSEDCL said it plans to support energy storage facilities to meet its Energy Storage Obligations and electricity demand from suitable standalone pumped hydro storage plants connected to the grid anywhere in India.

It is therefore asking pumped storage developers to provide long-term grid-connected energy storage capacity of 1,000 MW/8,000 MWh (for eight hours of discharge, with a maximum five hours continuous of discharge per day) from pumped hydro storage plants anywhere in India on an on-demand basis for a period of 40 years.

The developers will be selected through tariff-based competitive bidding.

MSEDCL will sign energy storage facility agreements on an annual fixed-charge basis with the selected bidders for a period of 40 years.

The contracted capacity will be provided by the developer on a build-own-operate-maintain (BOOM) basis. The developer will be responsible for financing, development, design, engineering, procurement, construction, commissioning, operation, and maintenance of the storage capacity.

In a separate tender, MSEDCL has started accepting bids from developers to supply 5 GW of solar from PV plants in any part of the country. It will enter into power purchase agreements with the solar developers selected through competitive bidding, for a total capacity of 5 GW.

MSEDCL said that tying up large-scale capacity in one step with an optimal mix will lead to better rates and attract potential coal-based power generators to meet their obligations