New Delhi – In a significant step toward strengthening India’s renewable energy infrastructure, NHPC Limited has signed Battery Energy Storage Purchase Agreements (BESPA) with ACME Solar Holdings for a total contracted capacity of 275 MW/550 MWh. The agreement marks a major stride in the deployment of Standalone Battery Energy Storage Systems (BESS) to enhance grid resilience and support the energy transition.
The projects will be developed by ACME’s wholly owned subsidiaries and are part of the Government of India’s Viability Gap Funding (VGF) scheme, aimed at supporting large-scale, capital-intensive clean energy infrastructure.
Competitive Tariff Through E-Reverse Auction
The projects were awarded through a competitive e-reverse auction held on June 24, 2025. Two separate contracts were finalized:
- 50 MW/100 MWh at a tariff of ₹2,10,000 per MW/month
- 225 MW/450 MWh at ₹2,22,000 per MW/month
The formal Letters of Award (LoA) were issued on July 8, 2025.
As per VGF provisions, financial assistance of up to ₹27 lakh per MWh or 30% of the total project cost (whichever is lower) will be provided by the government, making these BESS projects economically viable and faster to implement.
Project Execution and Location
Both BESS installations will be developed at customer-designated sites in Andhra Pradesh, where land and evacuation infrastructure will be provided by the customer. This arrangement is expected to significantly speed up the execution process. The projects are targeted for commissioning within 18 months from the date of signing the agreements.
Boosting Grid Stability and Renewable Integration
The BESS units are designed to store surplus energy during off-peak periods and release it during high-demand hours, enhancing the overall flexibility and stability of the power grid. By enabling better integration of intermittent renewable sources such as solar and wind, the systems will play a crucial role in addressing the variability challenges of green energy.
This collaboration between NHPC and ACME sets a precedent for large-scale BESS deployment under India’s clean energy framework.
About NHPC Limited
NHPC Limited is a Schedule-A, Mini-Ratna Category-I PSU under the Ministry of Power, Government of India. As the largest hydropower development organization in the country, NHPC is also venturing into solar, wind, and hybrid energy projects to diversify its renewable portfolio. With a growing emphasis on sustainability and innovation, NHPC continues to play a critical role in India’s clean energy transition.
Also Read: Leadership Shift: PESB Selects Mahesh Kumar Sharma for Director (Finance) Role at NHPC
