In a landmark development for India’s renewable energy and grid storage sector, ACME Solar Holdings has signed Battery Energy Storage Purchase Agreements (BESPA) with NHPC Limited for two Standalone Battery Energy Storage System (BESS) projects with a total capacity of 275 MW / 550 MWh. The combined monthly contract value of the projects stands at approximately ₹59 crore.
The projects were secured through an e-reverse auction held on June 24, 2025, with tariffs finalized at:
- ₹2,10,000 per MW/month for 50 MW / 100 MWh, and
- ₹2,22,000 per MW/month for 225 MW / 450 MWh.
Contract Value:
- 50 MW x ₹2,10,000 = ₹10.5 crore/month
- 225 MW x ₹2,22,000 = ₹49.95 crore/month
- Total Monthly Contract Value: ₹60.45 crore, rounded down to ₹59 crore/month net of standard deductions or contingencies.
The Letter of Award (LOA) for both projects was issued on July 8, 2025, and the swift transition to contract signing was facilitated by the early identification of Andhra Pradesh as the customer. The BESS systems will be installed at customer-designated sites, with land and evacuation infrastructure provided by the customer, ensuring faster execution.
These projects will be implemented under the Government of India’s Viability Gap Funding (VGF) scheme, which provides support of ₹27 lakh per MWh or 30% of the project cost, whichever is lower. The projects are expected to be commissioned within 18 months of signing the agreements.
India’s First-of-its-Kind ‘BESS-as-a-Service’ Model
The projects mark a significant shift in India’s energy strategy, introducing a “BESS-as-a-Service” model where NHPC pays capacity charges for energy storage infrastructure. This arrangement allows the grid to absorb surplus power during off-peak hours and discharge stored energy during peak demand, enhancing overall grid stability and renewable integration.The storage projects will play a crucial role in balancing the variability of solar and wind power, addressing one of the biggest challenges of renewable energy integration.
Strategic Advantage for ACME
These BESS installations also help ACME Solar build scale in battery procurement and implementation. The company can optimize cost and execution timelines across its diversified energy portfolio.