ACME Solar Holdings has signed landmark Battery Energy Storage Purchase Agreements (BESPA) with NHPC, covering a total capacity of 275 MW / 550 MWh. These agreements, executed through ACME’s wholly owned subsidiaries, represent two Standalone Battery Energy Storage System (BESS) projects and mark a pioneering step in India’s energy transition.
Auction-Winning Projects Under VGF Support
The projects were secured via an e-reverse auction held on June 24, 2025, with tariffs set at:
- INR 2,10,000/MW/month for a 50 MW/100 MWh project
- INR 2,22,000/MW/month for a 225 MW/450 MWh project
These initiatives fall under the Government of India’s Viability Gap Funding (VGF) scheme, which provides up to Rs 27 lakh per MWh or 30% of the total project cost, whichever is lower, enhancing the economic feasibility of large-scale energy storage deployment.
Swift Progress from LOA to Agreement Signing
The Letters of Award (LOA) for both projects were issued on July 8, 2025, and the subsequent quick signing of the BESPA is credited to the pre-identified customer—the state of Andhra Pradesh. The BESS installations will be sited directly at the customer’s premises, with land and evacuation infrastructure to be provided by the customer. This setup is expected to accelerate project execution timelines.
Commissioning and Strategic Benefits
Both projects are expected to be commissioned within 18 months, introducing a “BESS-as-a-Service” model where capacity charges are paid, an emerging concept in India’s energy market. The systems are designed to enhance grid stability, storing power during off-peak periods and discharging it during peak demand hours—thereby aiding the integration of renewable energy sources like solar and wind, known for their intermittency.
This strategic investment further enables ACME Solar to capitalize on scale efficiencies in battery procurement and installation, reinforcing its position as a leader in the renewable and energy storage space.
These projects set a precedent for utility-scale storage solutions in India, particularly for states like Andhra Pradesh, and signify a major milestone in India’s ambition to modernize its grid infrastructure and meet its clean energy targets.
