ACME Solar Holdings has secured a landmark contract to develop two grid-scale Battery Energy Storage System (BESS) projects in Andhra Pradesh, awarded by NHPC as part of its February 2025 tender. The combined capacity of the projects is 275 MW / 550 MWh, and the total contract value is estimated at ₹550 crore. This marks ACME’s first foray into standalone battery storage, reinforcing its position in India’s clean energy sector.

Project Breakdown

The awarded projects are located in Kuppam (50 MW / 100 MWh) and Ghani (225 MW / 450 MWh). Both facilities are designed to deliver two full two-hour charge-discharge cycles per day, supporting grid reliability and renewable integration.

• Kuppam BESS: ₹2.1 lakh per MW per month tariff

• Ghani BESS: ₹2.22 lakh per MW per month tariff

These tariffs are among the most competitive seen in recent Indian BESS procurements, reflecting ACME's cost-optimization capabilities.

Government Support through VGF

To enhance the financial viability of these storage projects, ACME will receive Viability Gap Funding (VGF) of up to ₹27 lakh per MWh or 30% of project cost, whichever is lower. This initiative, backed by the Government of India, is designed to catalyze early adoption of large-scale storage systems across the country.

Strategic Expansion into BESS

ACME Solar, a key player in India's renewable energy sector, currently manages a 6,970 MW portfolio, which includes solar, wind, firm dispatchable renewable energy (FDRE), and hybrid assets. With 2,890 MW operational and 4,080 MW plus 550 MWh under development, this BESS contract represents a strategic pivot toward dispatchable renewable power, enabling round-the-clock clean energy solutions.

Market Implications

The NHPC tender is part of a larger strategy to strengthen grid flexibility and storage infrastructure in high-renewables states like Andhra Pradesh. With growing solar and wind generation, BESS is critical for ensuring stability and predictable power delivery.

“This win is a significant milestone for us as we enter the standalone battery storage space,” said a senior ACME official. “It supports our vision of delivering clean energy around the clock and aligns with India’s goal of building a robust energy storage ecosystem.”

ACME Solar's success in this tender positions the company as a frontrunner in India’s evolving clean energy transition where energy storage is becoming as vital as generation itself.

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