The National Hydroelectric Power Corporation (NHPC) launching a significant tender for solar-plus-storage projects. The company is seeking to secure 1.2GW of solar photovoltaic (PV) capacity paired with 600MW of storage with 4-hour duration, which will greatly enhance the country’s ability to store renewable energy and address intermittency issues in power generation.
As India accelerates its renewable energy targets, this tender signals NHPC’s pivotal role in shaping the future of green energy. The projects will not only contribute significantly to India’s renewable energy capacity but also help meet its ambitious goals of reducing carbon emissions and transitioning to a cleaner, more sustainable power grid.
The NHPC tender invites bids for projects that will have a solar-to-storage ratio of 2:1 in megawatt terms. Each project must include a minimum of 50MW of solar capacity, paired with at least 25MW of storage (100MWh). This ratio ensures that the energy storage system can store solar power for at least four hours at full capacity, making it an ideal solution for balancing peak demand and ensuring uninterrupted power supply. In regions such as north-eastern states and special category areas, the minimum capacity requirements are adjusted to 30MW of solar and 15MW/60MWh of batteries.
The use of established solar technologies is a key requirement for the tender, with NHPC seeking commercially proven PV technologies, including crystalline silicon and thin-film solar. This focus on proven technologies ensures that the projects can be implemented efficiently, without the risk of experimenting with untested solutions, which is crucial for delivering large-scale renewable electricity within tight timelines.
In line with India’s broader renewable energy expansion, the projects awarded under this tender will be linked to 25-year power purchase agreements (PPAs). Successful bidders will sell the generated electricity to NHPC under these agreements, which provide long-term financial stability and a reliable revenue stream for developers. The bid process is open until 24 April, after which the selected projects will be incorporated into India’s broader energy strategy. However, while the tender focuses on increasing solar capacity, it also highlights a significant challenge facing India’s renewable energy sector: the lack of grid capacity to handle the new generation of renewable power. With India aiming to add 500GW of non-fossil fuel capacity by 2030, significant investments in grid infrastructure are needed. The Indian government has already announced plans to invest US$29.2 billion in grid expansion over the coming decade, but the ability to handle the massive increase in renewable energy will remain a concern unless this capacity is realised.
India’s renewable energy ambitions received a significant boost in 2024, with the country adding 25.2GW of new solar capacity, marking a record high and a 204% year-on-year increase. The government’s goal of reaching 500GW of non-fossil fuel power by 2030 will require substantial investments in both renewable energy projects and the transmission infrastructure necessary to connect them to the grid. In particular, energy storage systems, like those sought in the NHPC tender, will be crucial in managing the output from intermittent renewable sources, such as solar, and ensuring that excess energy can be stored for use when demand is high. In this context, the NHPC tender is not just an opportunity for developers but also a critical component of India’s renewable energy future. It will drive forward the country’s commitment to zero carbon emissions and its goal of establishing a sustainable, eco-friendly energy grid. As bidders prepare to submit their proposals, the country’s renewable energy landscape stands at a crossroads, with these projects set to play a key role in shaping its green energy future.
With the private sector increasingly involved in renewable energy generation and storage, India’s renewable energy push is entering an exciting new phase. However, the challenge of expanding grid infrastructure to match this growth remains a significant hurdle, and its resolution will determine how quickly India can transition to a cleaner, more sustainable energy future.
NHPC India Launches Solar-Storage Tender for Green
