Tata Power and ACME win NHPC-backed BESS projects

India’s battery storage sector saw a major boost as Tata Power Renewable Energy Limited (TPREL) and ACME Solar Holdings secured Battery Energy Storage Purchase Agreements (BESPAs) with NHPC Limited for projects in Kerala and Andhra Pradesh, respectively.

As per exchange filings on 18 July 2025, Tata Power’s subsidiary TPREL has won a contract to set up a 30 MW / 120 MWh standalone battery energy storage system (BESS) at KSEB’s substation in Mulleria, Kasaragod, Kerala. The project, worth approximately Rs 110 crore, will operate under a 12-year lease model and is expected to be commissioned within 15 months. NHPC, acting as the implementing agency under the Ministry of Power’s BESS Tranche-I scheme, facilitated the project under a Viability Gap Funding (VGF) framework.

Meanwhile, ACME Solar announced BESPAs totalling 275 MW / 550 MWh for two standalone BESS projects in Andhra Pradesh. The projects were awarded at tariffs of Rs 2,10,000/MW/month and Rs 2,22,000/MW/month for 50 MW and 225 MW capacities, respectively. Both contracts are backed by the central VGF scheme, with Rs 27 lakh per MWh or 30% of the project cost eligible for subsidy. These projects are expected to be commissioned within 18 months and will be hosted on customer-provided land with ready evacuation infrastructure, which is expected to speed up implementation.

The Tata Power project will support grid flexibility in Kerala by storing excess renewable energy for dispatch during peak demand. ACME’s projects will serve Andhra Pradesh’s grid using a “BESS as a service” model, where fixed monthly capacity charges are payable.