NHPC Signs Pact With Tata Power, ACME For BESS Projects

NHPC Limited has now signed agreements with Tata Power Renewable Energy Limited (TPREL) and ACME Solar Holdings for standalone Battery Energy Storage System (BESS) projects. This came after the central government entity had earlier issued a tender in this regard under Tranche I. These projects are set to play a vital role in enhancing grid stability, supporting renewable energy integration, and meeting peak demand across Kerala and Andhra Pradesh.

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ACME Solar Secures BESS Project in AP 

ACME Solar Holdings, through its wholly owned subsidiaries, has signed Battery Energy Storage Purchase Agreements (BESPAs) with NHPC for a total of 275 MW / 550 MWh across two standalone BESS projects to be developed in Andhra Pradesh.

Secured via e-reverse auction held on June 24, 2025, the projects were awarded at tariffs of INR 2,10,000/MW/month (for 50 MW / 100 MWh) and INR 2,22,000/MW/month (for 225 MW / 450 MWh). These projects are supported under the Government of India’s Viability Gap Funding (VGF) scheme, which provides up to INR 27 lakh per MWh or 30% of the project cost, whichever is lower.

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Letters of Award (LoAs) were issued on July 8, 2025, with the swift BESPA signings enabled by the prior identification of Andhra Pradesh as the end-user. The installations will be set up at customer-designated sites, where land and evacuation infrastructure are being provided by the state utility—ensuring timely execution. The projects are expected to be commissioned within 18 months from signing.

These systems will store surplus power during off-peak hours and discharge it during peak demand, significantly improving grid flexibility and enabling greater penetration of renewables. This is one of the first BESS projects to adopt a “BESS-as-a-Service” framework in India, where capacity charges are payable under a long-term contract model.

TPREL Signs First BESPA In Kerala

Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, has also signed its first standalone Battery Energy Storage Purchase Agreement with NHPC under the same Tranche-I tender. The contract involves a 30 MW / 120 MWh BESS to be installed at the 220 kV Areacode substation in Kerala, for ultimate use by the Kerala State Electricity Board Limited (KSEBL).

The storage system will play a strategic role in managing peak power demand, enhancing grid resilience, and facilitating the smooth integration of renewable energy in the region. It is part of NHPC’s plan to develop 125 MW / 500 MWh of BESS capacity in Kerala, aligned with the Ministry of Power’s guidelines and the Government of India’s 2030 goal of 500 GW non-fossil fuel capacity.

The project will be developed under a 12-year BESPA and is targeted for commissioning within 15 months. TPREL already operates a 100 MW solar + 120 MWh BESS hybrid project in Rajnandgaon, Chhattisgarh, developed under an EPC contract from SECI. The NHPC award marks TPREL’s entry into the standalone BESS segment, further strengthening its position as a provider of dispatchable, sustainable energy solutions.

With this win, TPREL’s total renewable capacity stands at 10.9 GW, including 5.6 GW operational (4.6 GW solar, 1 GW wind) and 5.3 GW under development.