NHPC Limited has formalized agreements with Tata Power Renewable Energy Limited (TPREL) and ACME Solar Holdings for the development of standalone Battery Energy Storage System (BESS) projects aimed at strengthening grid stability and supporting renewable energy integration in Kerala and Andhra Pradesh.

Project Overview

Under the agreements, ACME Solar Holdings will develop a total of 275 MW / 550 MWh across two standalone BESS projects in Andhra Pradesh. These projects were secured under NHPC’s Tranche-I tender at tariffs of INR 2,10,000/MW/month for a 50 MW / 100 MWh project, and INR 2,22,000/MW/month for a 225 MW / 450 MWh project.

TPREL, a wholly owned subsidiary of Tata Power, has signed its first standalone Battery Energy Storage Purchase Agreement (BESPA) under the same tender. The project entails a 30 MW / 120 MWh BESS, to be installed at the 220 kV Areacode substation in Kerala.

Implementation Timeline

The Andhra Pradesh projects are scheduled to be commissioned within 18 months, while the Kerala installation is expected to be completed in 15 months from the date of signing. Land and grid evacuation infrastructure will be provided by the respective state utilities, facilitating streamlined execution and commissioning.

Policy Support and Impact

These BESS projects are backed by the Government of India’s Viability Gap Funding (VGF) scheme, offering financial support of up to INR 27 lakh per MWh or 30% of the project cost, whichever is lower. The systems are designed to store surplus electricity generated during off-peak hours and discharge it during peak demand, thereby enhancing grid flexibility and enabling higher integration of intermittent renewable energy sources.

This strategic move aligns with India’s national objectives of ensuring energy security, decarbonization, and grid modernization. NHPC’s initiative also signals growing momentum in the deployment of utility-scale energy storage as a critical infrastructure component.

Sectoral Outlook

With this agreement, TPREL’s total renewable portfolio rises to 10.9 GW, comprising 5.6 GW of operational capacity and 5.3 GW under development. The company’s entry into standalone energy storage through this partnership reflects a broader industry shift toward flexible generation assets that complement renewable energy.

The deals with TPREL and ACME mark a significant milestone in NHPC’s diversification into energy storage and underscore its evolving role beyond conventional hydroelectric power. As battery storage gains prominence in India’s energy transition strategy, collaborations like these are likely to shape the next phase of infrastructure development in the sector.