The Central Electricity Regulatory Commission has approved tariffs for a large 2,000 MW solar power project integrated with energy storage systems, marking a major move to strengthen India's renewable energy reliability. The project has been developed under the leadership of the Solar Energy Corporation of India and aims to make solar power more stable and available even after sunset.

Project Structure and Storage Integration

The initiative includes 1,000 MW of energy storage systems, which will help convert solar energy into "firm and dispatchable" power. The storage component addresses one of the biggest challenges with solar energy - that it is only generated during the day, while electricity demand often rises in the evening. By adding storage, excess power generated during the day can be saved and used later, especially during peak hours between 6:00 PM and midnight.

For every 1 MW of solar capacity, developers must install at least 0.5 MW of storage capacity. This requirement ensures that sufficient energy is stored for use during non-solar hours. Developers must also maintain a minimum annual capacity utilization factor of 19 percent, which ensures that the plants generate a consistent amount of electricity throughout the year.

Bidding Process and Selected Developers

The project was awarded under the SECI-ISTS-XX tranche, following guidelines issued by the Ministry of Power for renewable energy projects combined with storage. The bidding process saw strong participation from 27 companies, showing high interest from the industry. After a competitive e-reverse auction held in October 2025, 11 developers were selected.

Eight companies secured capacity at a tariff of INR 2.86 per kWh. Major developers among the winners include Welspun Renewable Energy, Shivalaya Construction, and Purvah Green Power. Other selected firms include MB Power, Oswal Cables, Banyan Insulation, LC Infra Projects, and Stockwell Solar Services.

Additionally, three companies, SAEL Industries, GH2 Solar, and Navayuga Green Energy, won capacity at a slightly higher tariff of INR 2.87 per kWh.

Financial Structure and Trading Arrangements

The financial structure of the project has been clearly defined with SECI acting as an intermediary agency. SECI will sign long-term power purchase agreements with the developers for 25 years and will then sell this power to distribution companies through separate agreements.

The Commission has approved a trading margin of ₹0.07 per kWh for SECI, provided it maintains proper payment security mechanisms such as letters of credit. If these conditions are not fulfilled, the margin will be reduced to INR 0.02 per kWh.

Impact on India's Power System

This approval represents an important step in improving the stability of India's power system. By combining solar energy with storage, the project helps ensure a steady supply of clean electricity even during peak demand hours. The initiative also supports distribution companies in meeting their renewable purchase obligations while reducing dependence on fossil fuels.

The decision highlights how large-scale storage integration can make renewable energy more dependable and sets an example for future projects. The project moves India closer to building a strong, clean, and reliable energy system by addressing the intermittency challenges traditionally associated with solar power generation.

Discover Global Wind Power Projects with Ease

Are you seeking reliable and up-to-date insights into Solar power projects in India?

Explore the Global Project Tracking (GPT) platform by Blackridge Research, your go-to resource for the latest wind power projects and tenders across all stages:

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Book a Free Demo today and see how the GPT platform can help you unlock opportunities and achieve your business goals.