ACME Solar inks BESPA with NHPC for 275 MW/550 MWh battery storage projects

The said agreements cover two standalone Battery Energy Storage System (BESS) projects.

Shares of NHPC shed 0.17% to Rs 87.69 on the BSE.

The projects were awarded through an e-reverse auction held on 24th June 2025, with tariffs discovered at Rs 2,10,000 per MW/month for the 50 MW / 100 MWh project and Rs 2,22,000 per MW/month for the 225 MW / 450 MWh project.

Both projects are being developed under the Viability Gap Funding (VGF) scheme of the Government of India, which offers financial support of Rs 27 lakh per MWh or 30% of the total project cost, whichever is lower. The scheme aims to promote investment in energy storage infrastructure and improve the reliability and flexibility of renewable energy supply.

This strategic win reinforces ACME Solar's position as a key player in India's clean energy transition, expanding its footprint in the fast-growing battery energy storage sector.

The quick transition from Letter of Award (LOA) to signing of the BESPAs was enabled by prior identification of Andhra Pradesh as the end-customer. The standalone BESS installations will be set up at the customer's site, where land and evacuation infrastructure will be provided by the state. This arrangement is expected to expedite project execution, with commissioning targeted within 18 months of the agreement.

These projects are among the first of their kind in Andhra Pradesh and represent a significant step in the evolution of India's energy storage sector. The BESS will enhance grid stability by storing energy during off-peak hours and discharging it during peak demand, thereby facilitating better integration of variable renewable energy sources such as solar and wind.

The projects also introduce a pioneering 'BESS as a Service' model, under which capacity charges are payable, creating a scalable commercial framework for energy storage. With these projects, ACME Solar is expected to benefit from economies of scale in battery procurement and installation, further strengthening its energy storage portfolio.

NHPC, a Mini Ratna category I public sector utility, is Government of India's flagship hydroelectric generation company. The company is primarily involved in the generation and sale of bulk power to various Power Utilities. Its other business includes providing project management / construction contracts/ consultancy assignment services and trading of power.

ACME Solar Holdings (ACML) is a renewable power generation company in India with a portfolio of solar, wind, hybrid and FDRE (firm and dispatchable renewable energy) projects.

The scrip shed 0.41% to currently trade at Rs 277.14 on the BSE.

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