ACME Solar, NHPC Sign Deals for 275 MW Battery Storage in Andhra Pradesh

ACME Solar Holdings Limited (NSE: ACMESOLAR), through its wholly-owned subsidiaries, has entered into Battery Energy Storage Purchase Agreements (BESPA) with NHPC for a total contracted capacity of 275 MW/550 MWh.

These projects, comprising 50 MW/100 MWh and 225 MW/450 MWh standalone Battery Energy Storage Systems (BESS), were secured through an e-reverse auction on June 24, 2025, at tariffs of ₹2,10,000 per MW per month and ₹2,22,000 per MW per month, respectively.

Government Support and Quick Progress

These projects fall under the Viability Gap Funding (VGF) scheme of the Government of India, wherein financial assistance of ₹27 lakh per MWh or 30% of the total project cost (whichever is lower) will be provided.

The Letter of Award (LOA) for these projects was issued on July 8, 2025, and the quick transition to BESPA signing is attributed to the prior identification of Andhra Pradesh as the customer.

Since the Standalone BESS installations will be set up at the customer site, with land and evacuation infrastructure provided by the customer, the execution timeline is expected to be expedited.

Grid Stability and Renewable Integration

These one-of-a-kind projects in Andhra Pradesh are slated for commissioning within 18 months from the BESPA signing. The BESS solutions will store energy during off-peak hours and discharge power during peak demand, thereby enhancing grid stability. They also facilitate better integration of renewable energy sources such as solar and wind, which are variable by nature.

A Milestone for ACME Solar and Indian Energy Sector

The projects introduce a pioneering “BESS as a Service” model, where capacity charges are payable, setting a precedent for future storage projects in India. This move strengthens ACME Solar’s portfolio by leveraging large-scale battery procurement and installation advantages, aligning with India’s renewable energy expansion goals.

Also Read: ACME Solar Signs 25-Year PPA with SECI for 300 MW Solar Project in Rajasthan!

Conclusion

With these 275 MW/550 MWh BESS projects, ACME Solar Holdings marks a significant step forward in advancing grid reliability and renewable energy adoption in India. The company’s strategic collaboration with NHPC under the VGF-backed model sets a benchmark for future storage-driven energy solutions in the country.

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