HISTORIC: MP’s First Solar+BESS Project Sees Record Tariff Of ₹2.70/kWh

The Indian solar sector has achieved a new milestone with the discovery of its lowest-ever tariff for a solar-plus-energy storage project. In a recent development, Madhya Pradesh’s maiden solar-plus-storage project in Morena recorded a tariff of ₹2.70/kWh.

According to state government officials, this marks the first time in India that a Firm and Dispatchable Renewable Energy (FDRE) project has achieved a tariff below ₹3/kWh, setting the stage for more affordable and reliable renewable power. The tender for the project had earlier been issued by Madhya Pradesh Power Management Company Limited (MPPMCL).

Manu Srivastava, Additional Chief Secretary of Madhya Pradesh, noted that this is also the country’s first solar-plus-storage project with assured annual availability of 95% peak supply. “The project ensures the same level of supply during peak hours as during normal solar hours, whereas all previous projects in the country have had much higher solar capacity compared to their peak-hour capacity,” Srivastava wrote in a social media post."

Under the auction, MPPMCL awarded the project to CEIGALL India Limited at ₹2.70/kWh and to ACME Group at ₹2.76/kWh.

The project comprises 600 MW of solar capacity along with a 220/880 MWh Battery Energy Storage System (BESS). It also includes provisions such as free night charging (10 p.m.–5 a.m.), incentives for lower charging power requirements, a cap on maximum solar export with reduced tariffs beyond that, a three-tier payment security mechanism, 100% land allotment, and both internal and external evacuation infrastructure provided by the state.

So far, India has witnessed solar-plus-BESS tariffs of ₹3.13/kWh (solar + 4 hrs BESS), ₹3.59 lakh/MW/month (standalone BESS for 4 hours), and ₹6.64/kWh (standalone BESS with charging in the developer’s scope).

"The Tender saw global participation with 16 bidders participating in the tender, with an over-subscription of around 10 times the bid capacity. The bidders include reputed players, including Acme Solar, Adani Renewable, AMPIN Energy, Apraava Energy, CEIGALL India, Dilip Buildcon, Engie Energy, Goldi Solar, MB Power, NTPC Renewable Energy, Power Mech, Purvah Green, ReNew Solar, Serentica Renewables, Shivalaya Constructions, and Waaree Forever Energies," Srivastava added. 

About the Tender

Madhya Pradesh and Rewa Ultra Mega Solar Limited (RUMSL) will develop their first storage project — a 600 MW solar plant with an 880 MWh dual-cycle BESS — in Morena. As per the tender, these developers must ensure 95% annual availability for both peak supply periods. The tender allows an additional payment of Rs. 2.15 per unit for power supplied beyond 220 MW, up to 300 MW, with the annual CUF capped at 35%.

RUMSL had planned to provide 100% of the land — 575 hectares for Unit 1 and 635 hectares for Unit 2 for the project. Power evacuation will be handled via the state transmission utility (STU), with internal evacuation infrastructure by RUMSL and external infrastructure by MP Transco. Both are being developed as a single package by MP Transco under one contractor to ensure synergy.