ACME Solar signs battery storage contracts with NHPC for 275 MW capacity in Andhra Pradesh Energy Watch
Renewable Energy

ACME Solar signs battery storage contracts with NHPC for 275 MW capacity in Andhra Pradesh

ACME Solar signs battery storage deals with NHPC for 275 MW/550 MWh projects in Andhra Pradesh; backed by govt’s VGF scheme

EW Bureau

  • Projects backed by viability gap funding, to be commissioned in 18 months

  • Standalone BESS projects awarded via e-reverse auction

Gurugram: ACME Solar Holdings Ltd has signed battery energy storage purchase agreements (BESPAs) with NHPC Ltd for a total capacity of 275 MW/550 MWh, the company said in a statement on Friday. The contracts, executed through ACME Solar’s wholly-owned subsidiaries, cover two standalone battery energy storage system (BESS) projects that were secured via e-reverse auction held on June 24. The projects were awarded at tariffs of Rs 2,10,000 per MW per month for a 50 MW/100 MWh system and Rs 2,22,000 per MW per month for a 225 MW/450 MWh system.

Backed by VGF and customer infrastructure support

The projects are eligible for support under the Government’s Viability Gap Funding (VGF) scheme, which offers Rs 27 lakh per MWh or 30 percent of the project cost, whichever is lower.

Letters of award were issued on July 8, and the quick contract signing was made possible by prior identification of Andhra Pradesh as the customer. The state will provide both the land and evacuation infrastructure at the project sites, which ACME said will help fast-track implementation.

“These one-of-its-kind projects in Andhra Pradesh are expected to be commissioned within 18 months from the signing of the BESPAs,” ACME Solar stated.

‘BESS as a service’ model introduced

The company said the BESS installations will support grid stability by absorbing excess power during off-peak hours and discharging it during peak demand. The projects also aim to enhance the integration of variable renewable energy sources like solar and wind.

ACME highlighted that the agreements mark a significant milestone for the Indian energy sector, introducing a new model under which capacity charges are paid under a “BESS as a service” framework.

ACME’s total portfolio crosses 6.9 GW

ACME Solar currently manages a diversified renewable energy portfolio of 6,970 MW and 550 MWh across solar, wind, hybrid, and storage systems. The company’s operational capacity stands at 2,890 MW, with another 4,080 MW under development. It executes projects through in-house EPC and O&M teams, and reports industry-leading plant load factors and operating margins, the statement said.

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