Sunsure and Enerica win NVVN’s standalone BESS auction

NTPC Vidyut Vyapar Nigam Ltd (NVVN) has awarded its 250 MW/1,000 MWh standalone battery energy storage systems (BESS) tender to Sunsure Energy and Enerica Infra 3. Sunsure secured 125 MW/500 MWh at Rs 6.64 per kWh, while Enerica won the remaining 125 MW/500 MWh at Rs 6.65 per kWh. The tender, floated in February 2025, is one of India’s first standalone BESS auctions with charging power placed under the bidder’s scope.

The final tariffs came in well below the ceiling rate of Rs 7.8 per kWh set by NVVN. The auction was highly competitive, with just a 0.15 per cent difference between the top two bids. Other participants included Stockwell Solar, Oriana Power, MKC Green Energy, Reliance NU Energies, Patel Infrastructure, and MB Power. The highest bid stood at Rs 7.99 per kWh, marking a 20.33 per cent premium over the lowest bid.

Developers will be responsible for installing, owning, operating, and maintaining the systems. The storage assets must be made available to NVVN for dispatch on demand, with a minimum availability requirement of 95 per cent each month. A greenshoe option allows for an additional 250 MW/1,000 MWh to be awarded at NVVN’s discretion.

To support project viability, a viability gap funding (VGF) of up to Rs 2.7 million per MWh or 30 per cent of the capital cost, whichever is lower, will be offered to the selected bidders. This structure makes the tender one of the first cost-reflective price discovery exercises for battery storage in India.

The awarded projects are expected to act as early models for future grid-scale storage integration, helping stabilise the grid and improve renewable energy absorption.