Sunsure Energy and Enerica Infra 3 Win 250 MW Battery Storage Project at Record Low Tariffs NTPC Vidyut Vyapar Nigam Limited (NVVN), a subsidiary of NTPC Limited, has completed the auction for setting up a 250 MW/1,000 MWh standalone Battery Energy Storage System (BESS) in India. 

The project was awarded under a tariff-based competitive bidding process, with the lowest tariff discovered during the auction reaching ₹6.64 per kWh. Sunsure Energy emerged as the lowest bidder, securing 125 MW capacity at the record tariff of ₹6.64 per kWh.

Enerica Infra 3 won the remaining 125 MW capacity at a slightly higher tariff of ₹6.65 per kWh, completing the total 250 MW allocation between the two companies.

Project Timeline and Objectives

The tender was initially issued in February 2025 and aimed to promote large-scale battery energy storage systems that can support India's growing renewable energy sector. The total 250 MW capacity will help store and discharge renewable power as needed, providing crucial grid stability and energy management capabilities.

The project represents a significant milestone in India's energy storage infrastructure development, with the 1,000 MWh storage capacity providing substantial energy storage capabilities for the national grid.

Financial Support and Agreements

The project will receive support under the Viability Gap Funding (VGF) scheme, which provides financial assistance to make infrastructure projects economically viable. This government backing demonstrates the strategic importance of battery energy storage systems in India's renewable energy transition.

The selected bidders will sign a Battery Energy Discharge Purchase Agreement (BEDPA) with NVVN. This agreement will ensure that the stored energy is supplied when required, providing a structured framework for energy discharge and grid support operations.

Market Impact and Industry Significance

The competitive tariffs achieved in this auction, with rates as low as ₹6.64 per kWh, represent a significant development in India's battery energy storage market. The close competition between the winning bids, with only a one paisa difference between the two tariffs, demonstrates the competitive nature of the current market.

The 250 MW/1,000 MWh standalone Battery Energy Storage System will contribute to India's energy security by providing reliable storage and discharge capabilities for renewable energy integration. 

The project's scale and the competitive pricing achieved through the auction process highlight the maturing battery storage sector in India.