ACME Solar Partners with NHPC for Battery Storage Projects in Andhra Pradesh

Speedy Summary

• ACME Solar Holdings has signed Battery Energy Storage Purchase Agreements (BESPA) with NHPC Ltd.for two standalone Battery Energy Storage system (BESS) projects in Andhra Pradesh.
• The total capacity of the projects is 275 MW/550 MWh, awarded through an e-reverse auction.
• Tariffs were set at ₹2,10,000 per MW per month for a 50 MW/100 MWh project and ₹2,22,000 per MW per month for a 225 MW/450 MWh project.
• Projects are part of the Government of India’s Viability Gap Funding (VGF) scheme providing financial support: ₹27 lakh/MWh or up to 30% of total cost.
• Expected to be commissioned within 18 months; aims to stabilize energy grids and facilitate renewable integration by storing power during off-peak hours and using it during peak demand.
• introduces ‘BESS-as-a-Service’ model with capacity charges payable for storage services.

Indian Opinion Analysis

The development of standalone battery energy storage systems in Andhra Pradesh represents a notable advance toward grid stability amid India’s transition to renewable energy. With renewables like solar and wind gaining prominence but presenting intermittency challenges, BESS solutions serve as crucial enablers. Underpinned by government-backed financial support through VGF schemes, this initiative reflects commitment toward combating these hurdles while ensuring sustained advancements in clean infrastructure.

The introduction of a ‘BESS-as-a-Service’ model sets a precedent with implications beyond cost efficiency-it could lead to more market-driven investments in future deployment across states if commercial viability holds firm. Additionally, stabilizing tariffs from competitive auctions demonstrates progress in transparency. Within the framework of India’s long-term energy goals focused on sustainability and reduced dependence on fossil fuels, such projects signify incremental strides with lasting impact potential.

Read more: Published – July 18, 2025