Andhra Pradesh Awards Rs550 Crore Storage Tender to ACME Solar
Andhra Pradesh is set to add serious muscle to its renewable power backbone as ACME Solar Holdings secures a ₹550 crore tender from NHPC for two grid-scale battery energy storage system (BESS) projects. The development marks ACME’s foray into standalone battery storage infrastructure and signals a pivotal moment in India’s clean energy landscape.
The projects, totalling 275 MW / 550 MWh in capacity, are to be installed at Kuppam and Ghani in Andhra Pradesh. These sites are strategically located to support the region’s fast-growing renewable power output and are designed to execute two full charge-discharge cycles of two hours each day. This operational model ensures that stored renewable energy can be dispatched flexibly to meet peak demand and stabilise fluctuations in grid supply. At Kuppam, ACME won the bid for a 50 MW / 100 MWh storage system at a monthly tariff of ₹2.1 lakh per MW. The larger Ghani installation, with a capacity of 225 MW / 450 MWh, was awarded at ₹2.22 lakh per MW per month. These tariffs reflect growing competitiveness in India’s storage sector, where scale is beginning to reduce cost curves.
The tender was floated by NHPC, India’s premier hydropower PSU, as part of a broader push to modernise grid operations in Andhra Pradesh. With the state’s renewable generation—particularly solar—scaling up sharply, grid flexibility has become a priority. Battery storage is emerging as a crucial enabler, allowing for time-shifting of power and buffering sudden dips or surges in renewable generation. To make the projects commercially viable, ACME Solar will receive viability gap funding (VGF) under the central government’s scheme to incentivise energy storage. The VGF is capped at ₹27 lakh per MWh or 30% of the project cost, whichever is lower. This fiscal support reflects the government’s commitment to making clean, dispatchable power scalable and investment-worthy.
ACME’s win is significant because it marks the company’s formal entry into the standalone BESS segment. Until now, ACME has built a diversified clean energy portfolio that includes solar, wind, hybrid, and firm dispatchable renewable energy (FDRE) assets. With this development, it takes a critical leap into a space that will define the next phase of India’s clean energy grid—reliability. The project is also ACME’s first major BESS contract without being coupled to generation assets. This opens the door for future storage-only deployments that provide grid services independently—such as peak shaving, frequency regulation, and ancillary support—which are essential as India targets 24/7 clean power.
ACME Solar currently holds a total renewable capacity of 6,970 MW and 550 MWh across solar, wind, storage, FDRE, and hybrid categories. Of this, 2,890 MW is operational, and 4,080 MW along with 550 MWh of storage is under various stages of development. The new Andhra Pradesh BESS win boosts that strategic roadmap significantly. From a policy perspective, the project aligns closely with India’s long-term climate goals. The country aims to reach 500 GW of non-fossil capacity by 2030, and energy storage—especially grid-connected BESS—has become the missing piece in ensuring supply stability from intermittent sources like wind and solar. The ACME projects at Kuppam and Ghani are designed not just to store energy, but to operate in two full cycles each day. This allows for energy captured during off-peak renewable generation to be used during peak consumer demand—flattening the load curve and ensuring that fossil peaker plants don’t have to be ramped up.
The projects are also expected to contribute indirectly to reducing grid emissions by offsetting the need for coal-based backup. By smoothing power supply and offering fast response support, BESS facilities like these improve grid reliability and reduce dependence on inefficient load-following thermal assets. Equally important is the decentralised nature of the projects. Sited at Kuppam and Ghani, the BESS assets will cater to regional stability in southern India—supporting local grids where renewable penetration is especially high. This sub-national reinforcement is key as India’s grid becomes more complex and decentralised in its renewable buildout. What also makes this development notable is NHPC’s role. Known primarily as a hydropower utility, NHPC has been pivoting towards a more diversified clean energy portfolio. Its entry into battery-backed solutions not only widens the market for storage developers but brings institutional rigour to what has been a niche sector until now.
ACME’s successful bid could also spur other independent power producers to sharpen focus on standalone storage. As regulatory frameworks evolve to allow battery storage to participate in capacity markets and ancillary services, storage economics are expected to improve further. This tender may also influence tariff benchmarks for future BESS auctions. The Kuppam and Ghani price points provide early signals to the market, helping investors calibrate risk and return for standalone storage without relying on bundled generation.
Overall, ACME Solar’s Andhra Pradesh win marks a clear evolution in India’s clean energy journey—from building capacity to delivering control. It reflects a maturing renewable ecosystem that recognises storage as central to decarbonisation—not merely supplemental. And with government backing, it hints at a coming wave of scale that could reshape the future of India’s power grid.
