ACME Solar Holdings, through its wholly owned subsidiaries, has signed Battery Energy Storage Purchase Agreements (BESPAs) with NHPC for a total contracted capacity of 275 MW/550 MWh across two Standalone Battery Energy Storage System (BESS) projects.

The agreements were finalized following an e-reverse auction held on June 24, 2025, with tariffs fixed at Rs 2,10,000/MW/month for a 50 MW/100 MWh project and Rs 2,22,000/MW/month for a 225 MW/450 MWh project. These projects are backed by the Government of India’s Viability Gap Funding (VGF) scheme, which offers financial support of Rs 27 lakh per MWh or 30% of the total project cost, whichever is lower.

Letters of Award (LoAs) were issued on July 8, 2025. The swift transition from LoA to contract signing was enabled by the pre-identified customer—Andhra Pradesh. The BESS installations will be set up at the customer’s site, with land and evacuation infrastructure provided by the customer, thereby streamlining project execution. Both projects are scheduled to be commissioned within 18 months of signing the BESPAs.

These pioneering projects in Andhra Pradesh are designed to enhance grid stability by storing energy during off-peak hours and discharging it during peak demand. The BESS installations will improve the integration of variable renewable energy sources like solar and wind into the power grid.

This initiative marks a significant advancement in India’s energy sector by introducing a unique “BESS as a Service” model, where capacity charges are applied. The addition of these standalone battery systems also enables ACME Solar to capitalize on economies of scale in battery procurement and deployment, further strengthening its clean energy portfolio.