Patel Infrastructure & ACME Sola Secure NHPC’s 1 GWh BESS Auction in Andhra Pradesh Amid Accelerating National Storage Momentum

In a significant development for India’s rapidly evolving energy storage sector, ACME Solar and Patel Infrastructure have emerged as the winners of NHPC Limited’s Tranche-II auction for a 1,000 MWh standalone Battery Energy Storage System (BESS). The competitive bidding, aimed at strengthening grid flexibility and renewable integration, concluded with the allocation of 500 MW/1,000 MWh of storage capacity at three strategic substations in Andhra Pradesh.

ACME Solar secured a total of 275 MW/550 MWh capacity, with 225 MW/450 MWh for the Ghani substation at a tariff of ₹222,000/MW-month and 50 MW/100 MWh at ₹210,000/MW-month for the Kuppam site. Patel Infrastructure was the winner for 225 MW/450 MWh at the Jammalamadugu substation at a tariff of ₹208,000/MW-month. All winning capacities are eligible for Viability Gap Funding (VGF) of ₹2.7 million per MWh (or up to 30% of the capital cost) and must be commissioned within 18 months under long-term Battery Energy Storage Purchase Agreements.

This NHPC tender aligns with India’s broader efforts to deploy utility-scale energy storage for balancing its renewable-heavy grid. Recent auctions have illustrated a national push toward grid-scale storage. For instance, Tamil Nadu Green Energy Corporation recently concluded contracts for a 1,000 MWh BESS through a Build-Own-Operate (BOO) model, supported by central government VGF in the tariff of Rs. 2,46,000 to Rs. 2,48,000/MW/Month.

These developments are set against a backdrop of surging BESS interest across India. In Q1 2025 alone, energy storage tenders reached 6.1 GW, of which 64% were for standalone systems, reflecting the growing confidence in storage as a commercially viable solution. Unsubsidized standalone BESS tariffs in India now average around ₹2.8 lakh/MW-month (approximately USD 3,370), while co-located solar-plus-storage tariffs have fallen to ₹3.1–₹3.5/kWh—making them competitive with new coal and gas generation sources.

Technological and economic tailwinds are further accelerating this momentum. Battery pack prices for intraday storage applications have dropped to as low as USD 55/kWh as of May 2025. At the policy level, the government has extended inter-state transmission system (ISTS) charge waivers for storage projects until June 2028. Additionally, a ₹54 billion incentive package targeting 30 GWh of domestic battery manufacturing underlines India’s intent to localize the energy storage value chain.

As India targets 500 GW of non-fossil capacity by 2030, large-scale energy storage projects like NHPC’s 1 GWh initiative are critical to ensuring grid reliability, managing renewable intermittency, and replacing expensive fossil-fuel-based peaking power. With favorable economics, strong policy backing, and increasing developer participation, the energy storage sector is poised to play a transformative role in India’s clean energy future.

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