ACME Solar Holdings has taken a major step in India’s energy storage landscape by signing Battery Energy Storage Purchase Agreements (BESPA) with NHPC for a total capacity of 275 MW/550 MWh. These agreements, finalized through ACME’s wholly owned subsidiaries, cover two standalone Battery Energy Storage System (BESS) projects in Andhra Pradesh.
Secured via an e-reverse auction held on June 24, 2025, the contracts were awarded at tariffs of ₹2,10,000 per MW/month for a 50 MW/100 MWh system and ₹2,22,000 per MW/month for a larger 225 MW/450 MWh project. Both projects fall under the Government of India’s Viability Gap Funding (VGF) scheme, which provides support of up to ₹27 lakh per MWh or 30% of the project cost, whichever is lower.
The Letter of Award (LOA) was issued on July 8, 2025, with swift movement to signing the BESPA, thanks to early identification of the customer—Andhra Pradesh. Since these BESS systems will be set up at the customer site with land and evacuation infrastructure provided by the state, the implementation timeline is expected to accelerate. Commissioning is targeted within 18 months.
These projects are among the first of their kind in Andhra Pradesh, and play a key role in enhancing grid reliability by storing excess power during off-peak hours and discharging it during peak demand. With the rise in renewable energy integration, such BESS projects are crucial for balancing variable sources like solar and wind.
Notably, this marks a significant shift toward the “BESS as a Service” model, where capacity charges are payable, ensuring long-term sustainability and scalability. For ACME Solar, the projects represent a strategic move to harness the benefits of large-scale battery procurement and strengthen its green energy portfolio.
