NTPC Issues Tender to Empanel EPC Service Providers for Solar Projects

IFC, IndiGrid to Develop 180 MW/360 MWh Standalone BESS Project in Gujarat

CleanMax, Toyota Tsusho to Develop 300 MW of Renewable Energy Projects

Delhi Metro Floats Tender for 5 MW Rooftop Solar Projects

Enhancing Grid Stability and Expanding Renewable Energy Integration

Daily News Wrap-Up: Bihar Announces Winners of 500 MWh BESS Auction

Global Offshore Wind Capacity Additions Fell 26% in 2024 to 8 GW: GWEC

Hartek Bags ₹1.38 Billion Substation Contract from PGCIL in Karnataka

Jharkhand Commission Issues Draft Regulations to Determine Solar Tariffs

Senate Passes Budget Bill Without Excise Tax on Wind and Solar Projects


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					</table><p>The International Finance Corporation (<a href="https://www.ifc.org/en/home" target="_blank" rel="noopener">IFC</a>) and Mumbai-based power transmission and renewable energy company <a href="https://www.indigrid.co.in/" target="_blank" rel="noopener">IndiGrid</a> have announced a partnership to develop a 180 MW/360 MWh standalone battery energy storage system (BESS) project in Gujarat.</p>
<p>The partnership aims to strengthen Gujarat’s clean energy infrastructure by enhancing grid stability and ensuring a reliable power supply during periods of peak demand.</p>
<p>IFC has committed ₹46 billion (~$534.88 million) in long-term financing to IndiGrid through a subscription to listed non-convertible debentures. This commitment includes approximately $38.5 million from IFC’s account and $16.5 million in concessional support from the Clean Technology Fund, a multi-donor trust fund under the World Bank-hosted Climate Investment Funds framework.</p>
<p>The investment was made during the quarter ending June 30, 2025. Since 2023, IFC has provided an aggregate debt line of ₹32.5 billion (~$377.91 million) to IndiGrid.</p>
<p>Imad N. Fakhoury, Regional Director for South Asia, IFC, stated that the investment supports Gujarat’s target of achieving 100 GW of renewable capacity by 2030.</p>
<p>IndiGrid manages projects worth over ₹319 billion (~$3.71 billion), including 43 power projects, 53 transmission lines, 16 substations, approximately 1.15 GW of solar generation capacity, and 450 MW/900 MWh of BESS. The Kilokari BESS project was awarded to IndiGrid in October 2023 by BSES Rajdhani Power.</p>
<p>In June this year, IndiGrid <a href="https://www.mercomindia.com/indigrid-to-acquire-solar-and-transmission-assets-from-renew-for-%E2%82%B921-billion" target="_blank" rel="noopener">announced</a> it would acquire ReNew Surya Aayan and Koppal–Narendra Transmission for a total enterprise value of ₹21.08 billion (~$245.12 million). IndiGrid will acquire 100% shareholding and management control of both companies.</p>
<p>In April this year, Indigrid <a href="https://www.mercomindia.com/indigrid-commissions-indias-first-bess-project-for-discoms-in-delhi" target="_blank" rel="noopener">commissioned</a> India’s first commercial standalone BESS project with a 20MW/40MWh capacity at the distribution company level, and a tariff approved by the electricity regulatory authority.</p>
<p>Last year, IndiGrid <a href="https://www.mercomindia.com/nvvn-1-gwh-battery-storage-auction" target="_blank" rel="noopener">won</a> NTPC Vidyut Vyapar Nigam’s auction to set up a 500 MW/1000 MWh standalone BESS with Viability Gap Funding support. IndiGrid 2 was awarded 250 MW at a tariff of ₹236,999 (~$2,819)/MW/month.</p>



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					</table><p>Mumbai-based <a href="https://www.cleanmax.com/" target="_blank" rel="noopener">CleanMax</a> and Toyota Tsusho India (<a href="https://www.ttipl.co.in/" target="_blank" rel="noopener">TTIPL</a>) have formed a new entity to develop 300 MW of renewable energy projects by March 2028, to address the clean energy needs of Japanese corporations in India.</p>
<p>The joint venture aims to accelerate renewable energy development and facilitate a nationwide sustainable transition to green energy. It will facilitate clean energy adoption through long-term corporate power purchase agreements tailored for Japanese corporations.</p>
<p>The new entity will provide a range of customized green energy solutions, including rooftop solar installations, ground-mounted solar and wind projects, wind-solar hybrid systems, and carbon credits.</p>
<p>CleanMax provides renewable energy and net-zero solutions for India’s commercial and industrial sector. As of March 31, 2025, it had 2.2 GW of functioning, owned, and managed capacity of renewable assets across India, the Middle East, and Southeast Asia.</p>
<p>Toyota Tsusho has a presence in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region with over 4 GW of renewable energy assets.</p>
<p>Earlier this year, the Japan Bank for International Cooperation <a href="https://www.mercomindia.com/cleanmax-osaka-gas-form-jv-to-develop-renewable-energy-projects" target="_blank" rel="noopener">signed</a> a shareholders’ agreement with Osaka Gas to invest in a joint venture between the Japanese gas company and Clean Max Enviro Energy Solutions.</p>
<p>In February this year, global e-commerce company Amazon <a href="https://www.mercomindia.com/amazon-to-procure-379-mw-power-from-three-wind-projects-in-india" target="_blank" rel="noopener">announced</a> the procurement of power from CleanMax’s 100 MW wind project in Koppal.</p>
<p>Earlier, CleanMax <a href="https://www.mercomindia.com/clean-max-wind-solar-project-concord-biotech" target="_blank" rel="noopener">entered</a> an agreement to supply power from its 6.6 MW wind and 3.3 MW solar projects for Concord Biotech’s facility at Dholka, Gujarat. Concord would procure the power in captive mode for which it acquired a 26% stake in one of CleanMax’s special purpose vehicles.</p>
<p>Last November, digital infrastructure company Equinix <a href="https://www.mercomindia.com/cleanmax-to-supply-33-mw-of-renewable-energy-to-equinixs-data-centers-in-mumbai" target="_blank" rel="noopener">announced</a> its power procurement under a captive arrangement from 33 MW renewable energy projects to be set up by CleanMax to power its data centers in India. The captive power projects to be developed in Maharashtra comprised 26.4 MW of solar and 6.6 MW of wind power.</p>



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					</table><p><a href="https://hartek.com/" target="_blank" rel="noopener">Hartek Group</a>, an engineering, procurement, and construction (EPC) company, has secured a contract worth ₹1.38 billion (~$16.05 million) from the Power Grid Corporation of India (<a href="https://www.powergrid.in/en" target="_blank" rel="noopener">PGCIL</a>) to develop a 400 kV air-insulated substation (AIS).</p>
<p>In February this year, PGCIL had <a href="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" target="_blank" rel="noopener">won</a> the transmission project from <a href="https://www.pfcclindia.com/" target="_blank" rel="noopener">PFC Consulting</a>. This substation is part of the transmission program to integrate renewable energy zones in Davanagere, Chitradurga, and Ballari districts of Karnataka. The Ministry of New and Renewable Energy has identified 17 GW of renewable energy potential in Karnataka.</p>
<p>The scope of work under this contract includes the design, engineering, procurement, construction, testing at the manufacturer’s works, supply, unloading, storage, erection, testing, and commissioning of the 400 kV AIS. The project will be delivered on a turnkey basis.</p>
<p>Hartek said that once completed, the substation will facilitate the seamless transmission of green electricity across the region, enhance grid stability, reduce transmission losses, and lower the overall cost of clean energy for end-users.</p>
<p>The company added that it has connected over 10 GW of solar power to the national grid and installed 200 MW of rooftop solar capacity across the country.</p>
<p>In May this year, Hartek Group <a href="https://www.mercomindia.com/leading-solar-epc-companies-2024" target="_blank" rel="noopener">emerged</a> as one of the top utility-scale solar engineering, procurement, and construction service providers in 2024, according to Mercom’s recently released India Solar Market Leaderboard 2025 Report.</p>
<p>It bagged an EPC contract to develop a 300 MW ground-mount solar project in Rajasthan, valued at ₹4.7 billion (~$55.3 million) in 2024.</p>
<p>In January, Hartek Group’s commercial and industrial rooftop solar business <a href="https://www.mercomindia.com/hartek-wins-epc-contract-for-8-mw-rooftop-solar-project-in-jk" target="_blank" rel="noopener">won</a> a solar EPC contract from Kandhari Beverages for an 8 MW rooftop solar installation project in Jammu and Kashmir.</p>
<p>In February 2024, Hartek <a href="https://www.mercomindia.com/hartek-power-secures-solar-project-from-sjvn" target="_blank" rel="noopener">secured</a> an order from SJVN Green Energy to develop, implement, and maintain a 75 MW grid-connected solar power project and a 132 kV substation in Jamui, Bihar.</p>



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					</table><p><a href="http://www.barbrikindia.com/" target="_blank" rel="noopener">Barbrik Projects</a>, <a href="https://saatvikgroup.com/" target="_blank" rel="noopener">Saatvik Green Energy</a>, <a href="https://www.kundangreenenergy.com/" target="_blank" rel="noopener">Kundan Green Energy</a>, <a href="https://prostarm.com/" target="_blank" rel="noopener">Prostarm Info Systems</a>, Hindustan Thermal Project (<a href="https://hindustanpower.in/" target="_blank" rel="noopener">Hindustan Power</a>), and <a href="https://groupsurya.co.in/suryam-international.php" target="_blank" rel="noopener">Suryam International</a> have won the Bihar State Power Generation Company’s (<a href="http://bspgcl.bihar.gov.in/" target="_blank" rel="noopener">BSPGCL</a>) auction to set up standalone battery energy storage systems (BESS) of a cumulative capacity of 125 MW/500 MWh.</p>
<p>Prostarm Info Systems won 30 MW/120 MWh, Barbrik Projects 37.5 MW/150 MWh, Suryam International 10 MW/40 MWh, Kundan Green Energy 10 MW/40 MWh, Hindustan Thermal Project 30 MW/120 MWh, and Saatvik Green 7.5 MW/30 MWh. All projects were secured at a tariff of ₹444,000 (~$5,180.26)/MW/month.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/auction-table-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81449 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/auction-table-1.png" alt="" width="554" height="308" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/auction-table-1.png 554w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/auction-table-1-300x167.png 300w" sizes="(max-width: 554px) 100vw, 554px" /></a></p>
<p>The tender was <a href="https://www.mercomindia.com/bihar-tenders-125mw-500-mwh-standalone-bess" target="_blank" rel="noopener">floated</a> in March 2025.</p>
<p>Bidders could apply for a minimum of 5 MW/20 MWh and a maximum capacity of 125 MW/500 MWh.</p>
<p>The selected bidders will receive viability gap funding (VGF) for the projects, amounting to ₹2.7 million (~$ 31,501.58)/MWh or 30% of the project&#8217;s capital cost, whichever is lower.</p>
<p>They must make the energy storage facility available to the state transmission utility (STU) for charging and discharging on an “on-demand” basis. The BESS must be connected to the grid at a minimum voltage level of 33 kV. The scope of work also includes interconnecting the storage system with the STU/grid network.</p>
<p>The BESS will be charged by drawing power and discharged by injecting it into the transmission network per the dispatch instructions issued by the state load dispatch center in consultation with the distribution companies.</p>
<p>The selected bidders must use commercially established and operational technologies to minimize technology risks and achieve timely project commissioning.</p>
<p>In June 2025, BSPGCL <a href="https://www.mercomindia.com/bihar-issues-tender-for-10-mw-floating-solar-project-at-durgawati-dam" target="_blank" rel="noopener">invited</a> bids for the development of a 10 MW grid-connected floating solar project over the reservoir of Durgawati Dam, in the state’s Kaimur/Rohtas district.</p>
<p>In the same month, the Ministry of Power <a href="https://www.mercomindia.com/government-54-billion-vgf-battery-storage" target="_blank" rel="noopener">announced</a> the second tranche of VGF to support BESS development. Under this tranche, a VGF of ₹1.8 million (~$21,043)/MWh will be provided to support the development of 30 GWh of BESS capacity.</p>


Prostarm, Hindustan Power, Barbrik Among Winners in Bihar’s 500 MWh BESS Auction


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					</table><p>SJVN Green Energy, a wholly owned subsidiary of <a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a>, has issued an engineering, procurement, and construction (EPC) tender for setting up 951 MW of solar projects across Maharashtra under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 program, aligned with the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) Component C.</p>
<p>The 74 projects will be set up in three districts: Pune, Ahmednagar, and Solapur.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81432 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image.png" alt="SJVN tender" width="640" height="243" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image.png 640w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image-300x114.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image-624x237.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVN-tender-image-600x228.png 600w" sizes="(max-width: 640px) 100vw, 640px" /></a></p>
<p>Bids must be submitted by July 22, 2025. Bids will be opened on the same day.</p>
<p>Bidders must furnish an earnest money deposit of ₹1.12 million (~$13,023)/MW and a bid document fee of ₹5,000 (~$58) plus 18% GST, totaling ₹5,900 (~$69).</p>
<p>The scope of work encompasses the design, engineering, procurement, construction, and commissioning of the solar projects. It also entails providing operations and maintenance services for three years.</p>
<p>Selected bidders must identify and acquire the project land. They must also develop the evacuation infrastructure up to the interconnection point and install a supervisory control and data acquisition-based monitoring system.</p>
<p>Only modules from the Approved List of Modules and Manufacturing must be used.</p>
<p>Bidders must have designed, supplied, erected, supervised the erection, and commissioned solar projects with a cumulative capacity of at least 30 MW in India. One of these projects must have had a minimum capacity of 10 MW. These projects must have been operational for at least three months.</p>
<p>Alternatively, they must have implemented projects worth ₹16.8 million (~$195,349)/MW in the power, steel, oil and gas, petrochemical, fertilizer, cement, coal mining, including coal handling, infrastructure development, and/or any other process industry as a developer or EPC contractor.</p>
<p>They must have also set up an electrical substation of at least 33 kV rating as a developer or an EPC contractor. The substation must have consisted of equipment such as 33 kV or above voltage level circuit breakers and a power transformer.</p>
<p>The solar projects and the substation must have been operational for at least six months.</p>
<p>Bidders must have an average annual turnover of ₹16.8 million (~$195,349)/MW in the last three financial years and a positive net worth for the past two years.</p>
<p>Bidders can be joint ventures and consortiums, with a maximum of two members. The lead partner must have at least 50% participation, and the other partner must have at least 20%. They may collectively meet the technical criteria. The financial eligibility will be assessed proportionally.</p>
<p>In February this year, SJVN Green Energy <a href="https://www.mercomindia.com/sjvn-invites-bids-for-25-mw-green-hydrogen-project-in-assam" target="_blank" rel="noopener">invited</a> bids for consultancy services to develop a comprehensive roadmap, prepare a detailed project report, and draft a tender document to set up a 25 MW green hydrogen project in Assam.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


SJVN Green Floats EPC Tender for 951 MW Solar Projects in Maharashtra


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					</table><p>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has issued the draft “Planning, Procurement, Deployment, and Utilisation of Battery Energy Storage Systems (BESS)” Regulations, 2025.</p>
<p>Stakeholders must submit their comments before July 21, 2025.</p>
<p>The regulations aim to enable BESS deployment and utilization as part of generation, transmission, and distribution assets. They also promote cost-effective energy storage solutions that support grid stability, frequency management, and renewable energy integration.</p>
<p>According to the regulations, energy storage systems (ESS) can be utilized independently. Alternatively, they can be utilized as a part of the generation, transmission, or distribution system, or by integrating the consumer’s load with renewable sources co-located behind the meter.</p>
<p>ESS can be developed, owned, leased, or operated by a generating company, a transmission licensee, a distribution licensee, a consumer, a system operator, or an independent energy storage service provider.</p>
<p>It can have the same legal status as that of the owner if it is not co-located with a generating station, distribution licensee, or consumer, but rather owned and operated by them.</p>
<p>The reverse power flow from lower to higher voltage at various substations must be the criterion for finalizing the BESS locations in the distribution system or transmission system by distribution licensees.</p>
<p>The minimum individual project size must have a minimum power rating of 1 MW, with a suitable energy rating of at least four hours, based on the application at a single site.</p>
<p>Distribution licensees can also set up BESS at the distribution transformer level to store the power from the ‘step response time’ locally. The 1 MW condition would not apply in such cases.</p>
<p>Under the regulations, BESS can provide frequency regulation (primary, secondary, tertiary), spinning and non-spinning reserves, voltage support, and black start services.</p>
<p>Market-linked BESS services will be compensated based on market-clearing prices in the ancillary services market or under other mechanisms approved by the Commission.</p>
<p><strong>Compliance with Standards</strong></p>
<p>BESS installations must conform to technical standards specified by the Central Electricity Authority (CEA) and other relevant authorities.</p>
<p>Cybersecurity and communication protocols must adhere to the Ministry of Electronics and Information Technology, the CEA, and the Ministry of Power guidelines.</p>
<p><strong>Role of Aggregators, Distribution Licensees, and Nodal Agency</strong></p>
<p>Aggregators are entities registered or appointed by the distribution licensee to provide the aggregation of one or more services within a control area. These services can include demand response under the demand response mechanism, distributed generation, and energy storage,  among others.</p>
<p>They will aggregate BESS resources from multiple sites to provide services to the grid or market participants.</p>
<p>Aggregators will also register with the state load dispatch centers (SLDCs) and obtain approval from them following the notified eligibility conditions.</p>
<p>The regulations mandate cost recovery for licensee-owned BESS assets through tariffs determined by the Commission based on prudent investment norms. For procurement from BESS service providers, the Commission will adopt tariffs determined under competitive bidding.</p>
<p>Distribution licensees must publish potential sites at the 11 kV voltage level in their 33/11 kV substations for establishing BESS with the required capacities based on the feeder level solarisation and smart remote terminal installations in the feeder purview. This data must be updated annually.</p>
<p>The Transmission Corporation of Andhra Pradesh will develop the standard agreement template for procuring ancillary services and seek the Commission’s approval before signing any agreements.</p>
<p>The nodal agency (Andhra Pradesh State Load Despatch Centre) will verify the governor settings of all generators regarding their automatic primary response to changes in the system frequency.</p>
<p>It will estimate the requirement of ‘secondary reserve ancillary service’ and ‘tertiary reserve ancillary service’ for each distribution company (DISCOM) area for the specified period, using an appropriate methodology, and publish the same on its website.</p>
<p>The SLDC will prepare a procedure for scheduling, metering, accounting, mechanisms for remuneration, settlement, and verification of ancillary service provision for approval by the Commission within one month of the regulation’s publication date.</p>
<p>It will monitor state of charge, round-trip efficiency, availability, response time, and aggregated performance metrics.</p>
<p>Consumers and prosumers not covered under net-metering/billing may establish behind-the-meter BESS along with solar projects without requiring permission from the concerned DISCOMs.</p>
<p>However, all such systems must comply with the CEA’s technical standard for connectivity regulations.</p>
<p>The APERC Green Energy Open Access Charges and Banking Regulation, 2024, will govern the open access and charges.</p>
<p>The state <a href="https://www.mercomindia.com/andhra-pradesh-energy-access-rules-2024" target="_blank" rel="noopener">adopted</a> the Green Energy Open Access, Charges, and Banking Regulations in 2024, granting open access for electricity generated from renewable energy sources for utilization within the state, involving intrastate transmission systems and/or distribution systems of licensed entities.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to stay informed about critical updates from the renewable industry.</p>


Andhra Pradesh Commission Releases Draft BESS Regulations


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					</table><p>The Ministry of Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has expanded the Approved List of Models and Manufacturers (ALMM) by adding 742 MW of solar module manufacturing capacity.</p>
<p>The cumulative solar module manufacturing capacity under ALMM has now reached 91,458 MW after the latest additions.</p>
<p>Nithin Sai Renewables <span data-teams="true">(<a href="https://navgrun.com/" target="_blank" rel="noopener">Navgrun</a>)</span> (473 MW) and <a href="https://worldoneenergies.com/" target="_blank" rel="noopener">Worldone Energies</a> (164 MW) are the new entries to the list, adding a cumulative 637 MW.</p>
<p><a href="https://www.orbenergy.com/" target="_blank" rel="noopener">Orb Energy</a> and <a href="https://swelectes.com/shpv/" target="_blank" rel="noopener">Swelect HHV Solar</a> increased their capacities by 1 MW and 104 MW, respectively.</p>
<p><a href="https://www.jakson.com/" target="_blank" rel="noopener">Jakson Engineers</a>, <a href="https://pahalsolar.com/" target="_blank" rel="noopener">Pahal Solar</a>, and <a href="https://www.tpsolarltd.com/" target="_blank" rel="noopener">TP Solar</a> reduced their manufacturing capacities. Jakson’s revised capacity is 1,124 MW, Pahal&#8217;s is 264 MW, and TP Solar’s is 187 MW.</p>
<p>The total number of module manufacturers has now increased to 107.</p>
<p>In June this year, MNRE <a href="https://www.mercomindia.com/almm-authorized-solar-module-manufacturing-capacity-rises-by-2-98-gw">updated </a>the ALMM by adding 2,988 MW of solar module manufacturing capacity.</p>
<p>In May, MNRE <a href="https://www.mercomindia.com/mnre-clarifies-net-billing-and-metering-provisions-under-almm" target="_blank" rel="noopener">clarified</a> that net billing, virtual, and group net metering will be treated on a par with net metering provisions under the ALMM List-II. Virtual and group net metering are models of net metering that cover a group of consumers of the same category or a single consumer with multiple service connections.</p>
<p>In the same month, MNRE <a href="https://www.mercomindia.com/mnre-issues-clarifications-on-enlisting-solar-cells-in-almm" target="_blank" rel="noopener">issued</a> clarifications on solar cell enlistment in the ALMM. It stated that it would treat potential induced degradation (PID) and non-PID cells as different products or families and list them separately.</p>
<p>Jinko Solar, Waaree Energies, LONGi Green Energy Technology, Trina Solar, and Adani Solar were the top solar module suppliers in 2024, according to Mercom’s recently <a href="https://www.mercomindia.com/jinko-waaree-longi-trina-adani-lead-solar-module-supply-in-2024" target="_blank" rel="noopener">released</a> India Solar Market Leaderboard 2025.</p>
<p>The demand for solar modules in India has been growing, driven by the unprecedented number of solar project installations – 25.2 GW in 2024- and India’s goal to install 280 GW of solar energy by 2030.</p>
<p>Jinko Solar was the leading supplier in 2024, accounting for 15.7% of the modules shipped to India.</p>
<p>India <a href="https://www.mercomindia.com/almm-strong-demand-drive-indias-solar-panel-manufacturing-capacity-to-25-3-gw-in-2024" target="_blank" rel="noopener">added</a> 25.3 GW of solar module capacity and 11.6 GW of solar cell capacity in 2024, according to Mercom’s State of Solar PV Manufacturing in India 2025 report.</p>


Solar Module Manufacturing Capacity Under ALMM Grows to 91.5 GW


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					</table><p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has permitted special purpose vehicles (SPVs) or subsidiaries of renewable energy companies to submit land and financial closure documents in place of their parent companies for the grant of connectivity and general network access.</p>
<p>The decision will be effective until the third amendment to the Connectivity and General Network Access (GNA) to ISTS Regulations, 2022, is formally notified.</p>
<p><strong>Background</strong></p>
<p>The petitions were filed by Oyster Renewable Energy (<a href="https://www.oysterrenewable.com/" target="_blank" rel="noopener">OREPL</a>) and Avaada Energy (<a href="https://avaada.com/" target="_blank" rel="noopener">AEPL</a>), along with their SPVs, Oyster Green Hybrid One (OGHOPL) and Avaada MPSustainable2 (AMSPL), respectively, for approval of their land documents.</p>
<p>The Central Transmission Utility of India (<a href="https://www.ctuil.in/" target="_blank" rel="noopener">CTUIL</a>) granted final connectivity to both parent companies in April 2024. However, when the SPVs submitted land documents between March and April 2025, CTUIL rejected them because Regulation 11A required such documents to be in the name of the parent company.</p>
<p>OREPL, which is implementing a hybrid renewable project in Agar, Madhya Pradesh, through its SPV (OGHOPL), submitted that it had already invested ₹7.8 billion (~$90.48 million) in the project, acquired 70% to 97% of the land, and completed up to 31% of the erection work.</p>
<p>Similarly, AEPL, which won a Solar Energy Corporation of India tender, applied for 50 MW connectivity and submitted all project documents through its SPV, AMSPL.</p>
<p>CTUIL maintained that it was bound by the current regulations but expressed no objection to acting on specific or generic directions from the Commission.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>CERC noted that it had used its relaxation powers to allow similar SPV submissions in previous orders. It found that there was no regulatory or commercial risk in allowing land and financial closure documents from SPVs if they are wholly owned subsidiaries of the connectivity grantee.</p>
<p>Recognizing that the draft third amendment to the GNA Regulations already proposes such flexibility, the Commission relaxed Regulations 11A (1) and 11A (2), permitting SPVs to submit the required documents.</p>
<p>The Commission also mandated CTUIL to return the land bank guarantees within seven days of receiving the documents. However, connectivity bank guarantees will be released only after the commercial operation date.</p>
<p>CTUIL was directed to verify the legal status of SPVs and process all submissions accordingly.</p>
<p>Recently, CERC <a href="https://www.mercomindia.com/cerc-approves-tariffs-for-ntpcs-1170-mw-wind-solar-hybrid-projects" target="_blank" rel="noopener">approved</a> tariffs ranging from ₹3.28 (~$0.038) to ₹3.29 (~$0.038)/kWh for NTPC’s 1,170 MW of wind-solar hybrid power projects.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


CERC Allows Project SPVs to Submit Land Documents for ISTS Connectivity


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					</table><p>China Energy Engineering Corporation&#8217;s (<a href="http://en.ceec.net.cn/" target="_blank" rel="noopener">CEEC</a>) auction for 25 GWh of lithium-iron-phosphate (LFP) battery systems resulted in a record-low quoted tariff of CNY 0.37/Wh (~$0.051), a 30% year-over-year decrease from 2024.</p>
<p>The tender was structured into three packages based on system duration and received bids from more than 70 companies. For the one-hour systems, totaling 3 GW/3 GWh, prices ranged from CNY 0.673 to CNY 0.89/Wh (~$0.093–$0.124/Wh), with an average bid of CNY 0.7863/Wh (~$0.109/Wh).</p>
<p>The two-hour systems covered 6 GW/12 GWh. Bids in this category fell between CNY 0.416 and CNY 0.5764/Wh (~$0.058–$0.08/Wh), with an average price of CNY 0.4646/Wh (~$0.064/Wh). Notably, ten companies submitted nearly identical top bids, clustered between CNY 0.428 and CNY 0.44/Wh (~$0.059–$0.061/Wh).</p>
<p>The most competitive pricing appeared in the four-hour systems segment, totaling 2.5 GW/10 GWh. Here, bids ranged from CNY 0.37 to CNY 0.495/Wh (~$0.051–$0.068/Wh), with an average of CNY 0.4249/Wh (~$0.059/Wh). The lowest bid of CNY0.37/Wh (~$0.051) set a new low for the industry.</p>
<p>China&#8217;s leading battery manufacturers, including CATL, BYD, Sungrow, and Envision Energy, participated in the auction.</p>
<p>More than 60% of the tendered capacity is expected to support standalone battery energy storage systems, designed to provide services like peak shaving and frequency regulation.</p>
<p>Other deployments will be hybridized with renewable energy sources, particularly wind and solar, to enhance dispatchability and grid stability. A smaller share is earmarked for commercial and industrial users seeking to exploit time-of-use pricing and manage demand peaks.</p>
<p>According to the China Energy Storage Alliance, China added 13.3 GW/32.1 GWh of new energy storage capacity, a YoY increase of 52.5% in power and 41.8% in energy until May 2025.</p>
<p>Global energy storage capacity additions are expected to <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes/" target="_blank" rel="noopener">grow</a> by 35% in 2025 to 94 GW or 247 GWh, according to BloombergNEF&#8217;s latest outlook.</p>
<p>Corporate funding for energy storage companies, including venture capital, debt, and public market financing, <a href="https://www.mercomindia.com/energy-storage-funding-declines-sharply-in-q1-2025" target="_blank" rel="noopener">totaled</a> $2.2 billion across 31 deals in Q1 2025, according to Mercom Capital Group&#8217;s recently released Q1 2025 Funding and M&amp;A Report for Energy Storage.</p>


China Discovers Record Low Tariff of $0.051/Wh in Battery Storage Auction


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					</table><p><strong>Egypt</strong>’s <strong>Suez Canal Economic Zone</strong> and Chinese firm <strong>Sunrev Solar</strong> <a href="https://sczone.eg/with-investments-of-200-million-chairman-of-sczone-witnesses-groundbreaking-ceremony-for-an-integrated-solar-energy-components-industrial-complex-in-sokhna-spanning-200000-square-meters/" target="_blank" rel="noopener">commenced</a> construction of an integrated solar energy components industrial complex in Ain Sokhna. Spanning 200,000 sq m and backed by a $200 million investment, the project will be developed in two phases. The first phase, valued at $90 million, will comprise two factories designed to produce 2 GW of solar cells and modules. The second phase, valued at $110 million, will localize the production of key raw materials, including silicon ingots and wafers.</p>
<p>The <strong>Arab Petroleum </strong><strong>Investments Corporation (APICORP)</strong> <a href="https://english.ajel.sa/business/apicorp-funds-sirajpower-with-50mn-for-solar-energy-projects" target="_blank" rel="noopener">extended</a> a $50 million credit facility to the <strong>United Arab Emirates (UAE)</strong>-based <strong>SirajPower</strong> to boost its portfolio of distributed solar energy projects across the Middle East. The financing represents the largest lease-funding platform for solar projects in the Gulf Cooperation Council countries. It aims to support businesses in reducing their utility bills and lowering carbon emissions. Ahmed Attiga, CEO of APICORP, stated that the investment is part of the company’s $450 million renewable energy commitment over the next four years.</p>
<p><strong>The UAE’s Sharjah <a href="https://masdar.ae/en/news/newsroom/sultan-bin-ahmed-inaugurates-sharjah-1st-solar-plant-sana" target="_blank" rel="noopener">inaugurated</a> its first utility-scale solar facility, “SANA,” with a capacity of 60 MW and an area of 850,000 square meters</strong>. Located near the Sajaa Gas Plant, the solar project will supply clean power to the Sharjah National Oil Corporation’s operations and feed surplus electricity to the Sharjah Electricity, Water and Gas Authority. The project was executed in collaboration with <strong>Emerge</strong>, a joint venture between <strong>Masdar </strong>and <strong>EDF</strong>, which will also handle its operation and maintenance over the next 25 years.</p>
<p><strong>Algeria</strong>’s state-owned oil company <strong>Sonatrach</strong> has <a href="https://fuelcellsworks.com/2025/06/25/h2/sonatrach-hecate-and-tosyali-launch-feasibility-study-for-green-hydrogen-in-algeria-s-steel-sector" target="_blank" rel="noopener">signed</a> a memorandum of understanding with <strong>U.S.-</strong>based <strong>Hecate Renewable Energy</strong> and steel maker <strong>Tosyali Algerie</strong> to evaluate a green hydrogen production project powered by renewables, aimed at decarbonizing Algeria’s steel sector.</p>


MENA Weekly Roundup: Egypt Launches $200 Million Solar Components Plant


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					</table><p>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">MHI</a>) has launched the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI),’ inviting global and domestic manufacturers to establish electric vehicle (EV) production facilities in the country.</p>
<p>The application portal will remain active until October 21, 2025.</p>
<p>The program aims to attract major global EV manufacturers by offering a reduced customs duty structure and a policy framework that encourages long-term investments in India’s automotive sector.</p>
<p>MHI had recently MHI had recently <a title="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" href="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" target="_blank" rel="noreferrer noopener">issued</a> guidelines for SPMEPCI. Investments under this program must target domestic manufacturing of eligible products. If the program’s investment is directed towards a brownfield project, there must be a clear physical separation from current manufacturing facilities.</p>
<p>The guidelines also allow applicants to import completely built units of electric four-wheelers with a minimum cost, insurance, and freight value of $35,000 (~₹2.99 million) at a reduced customs duty rate of 15% for five years from the date of application approval.</p>
<p>To qualify for the program, manufacturers must commit a minimum investment of ₹41.5 billion (~$485.33 million). The program also includes clear domestic value addition targets and requires applicants to meet specified localization milestones to support the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.</p>
<p>These provisions are designed to ensure that the development of domestic capabilities accompanies the transfer of EV technology. They also aim to ensure that India benefits from both foreign direct investment and increased local innovation.</p>
<p>Earlier this year, the Ministry <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 electric vehicle components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-2024" target="_blank" rel="noopener">reached</a> a record 1.95 million units in 2024, representing an over 27% year-over-year growth from the 1.53 million units sold in 2023. These vehicles accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.</p>


Government Opens Doors to Global Electric Car Makers with Portal Launch


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					</table><p>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has proposed amendments to the guidelines for the tariff-based competitive bidding process to procure power from grid-connected power projects. These revisions apply to solar, wind, wind-solar hybrid, and firm and dispatchable power from renewable energy projects with energy storage systems.</p>
<p><strong>PSA Approval Timeline</strong></p>
<p>According to the proposed amendments, all projects will have a fixed timeline for regulatory approvals.</p>
<p>The amendments would require that when power procurement involves an intermediary agency and the end buyer is a distribution licensee, the latter must obtain regulatory approval for the power sale agreement (PSA) within 30 days of signing it. Such requirements apply to cases where prior approval was not obtained.</p>
<p>These provisions aim to avoid prolonged delays in obtaining regulatory clearance for PSAs. They apply uniformly to all types of renewable projects, including solar, wind, hybrid, and energy storage-linked generation.</p>
<p><strong>SCSD Extensions</strong></p>
<p>In cases where the appropriate regulatory commission fails to approve either the tariff or the PSA within 60 days of submission or 120 days from the date of the PSA, the project developer would be granted an extension for the scheduled commissioning and supply date (SCSD).</p>
<p>The extension would be based on the number of days there is a delay in tariff adoption or PSA approval, whichever is longer. It aims to ensure that developers are not penalized for regulatory inaction.</p>
<p>The government has also clarified that if delays occur in both tariff adoption and PSA approval, the longer of the two delays will be considered when granting the SCSD extension.</p>
<p><strong>PBG Slashed to 3%</strong></p>
<p>The proposed amendments aim to reduce the performance bank guarantee (PBG) requirement to 3% of the estimated cost for the relevant financial year, down from the earlier 5% of the estimated project or capital cost.</p>
<p>The PBG amount will be specified in the bid documents and must be submitted at the time of signing the power purchase agreement. In the case of wind projects, the amount must also conform to the limits specified by the Ministry of Finance.</p>
<p>In February this year, the Ministry <a href="https://www.mercomindia.com/power-ministry-amends-bidding-guidelines-renewable-energy-projects" target="_blank" rel="noopener">introduced</a> several amendments to the competitive bidding guidelines, including compensation mechanisms for failure to meet the minimum capacity utilization factor and location-specific bid requirements.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


MoP Proposes Amendments to Renewable Energy Bidding Guidelines


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					</table><p>Battery-backed solar energy systems need just 17 kWh of storage to flatten a 5 kW solar generation profile into a steady 1 kWh of output across 24 hours, according to a new report by <a href="https://ember-energy.org/" target="_blank" rel="noopener">Ember</a>.</p>
<p>For example, in a sunny city like Las Vegas, which has a solar capacity factor of around 20%, a 5 kW system generates an average of 1 kWh per hour or 24 kWh per day.</p>
<p>However, the city requires storage to redistribute excess generation since most of this energy is produced during daylight hours.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81236 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png" alt="Battery Storage " width="602" height="437" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1-300x218.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1-600x436.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a></p>
<p>Of the total 24 kWh generated daily, approximately 9.6 kWh can be consumed directly during sunlit hours. The remaining 15 kWh must be stored for non-sunlight periods. Typically, a 90% usable capacity is required to ensure safe operation between 5% and 95% charge levels, and a 17 kWh battery is needed to reliably store the 15 kWh. This configuration enables approximately 14.4 kWh to be discharged later.</p>
<p>While achieving 24-hour solar power is straightforward in sunny locations, delivering this consistently across all 365 days remains a challenge due to seasonal and weather-related variability.</p>
<p>However, the Ember report said that modeling using hourly solar irradiance data from 12 cities worldwide shows that optimized solar and storage ratios make achieving approximately 97% of full-year 24-hour coverage possible. In high-insolation regions, this can be achieved at a competitive levelized cost of $104/MWh.</p>
<p><strong>Impact of Solar Tracking </strong></p>
<p>Battery requirements vary across days and regions, but the variation is not large in sunny locations. In Las Vegas, the daily battery requirement fluctuates between 15.8 kWh and 18.2 kWh throughout the year. Analysis shows that a 17 kWh battery remains close to optimal for most sunny areas.</p>
<p>The requirement for battery storage remains largely unchanged, even if solar panels use tracking systems rather than fixed mounts. Although tracking can increase output during early morning and late afternoon, any power above the 1 kW continuous demand would be used to charge the battery rather than being utilized.</p>
<p><strong>Significant Savings </strong></p>
<p>Solar energy paired with batteries can reduce the need for expensive grid expansion. In sunny regions, a single solar panel has an annual capacity factor of 20%. A fixed grid connection that would otherwise support only a limited solar installation can now support up to five times the solar capacity with the addition of batteries.</p>
<p>In 2024, over 3,000 GW of renewable projects worldwide were stuck in interconnection queues, compared to 585 GW of total new installations during the year. The report opines that batteries offer a practical and immediate solution for such situations.</p>
<p><strong>Cost Declines </strong></p>
<p>In 2024, battery prices dropped 40%, reaching a record low of $165/kWh for a fully integrated system (excluding engineering, construction, procurement, and grid connection costs). The downward trend continues into 2025, with auctions in Saudi Arabia achieving prices as low as $72/kWh.</p>
<p>This price drop is largely due to the widespread adoption of lithium-iron-phosphate (LFP) batteries, which comprised 80% of new grid-scale installations in 2023. LFP technology does not use nickel or cobalt, improves safety, and now comes with 20-year warranties from some manufacturers. These improvements significantly enhance the economics and reliability of battery investments.</p>
<p>Last December, BloombergNEF <a href="https://www.mercomindia.com/lithium-ion-battery-historic-low-price" target="_blank" rel="noopener">reported</a> that lithium-ion battery pack prices dropped 20% from 2023 to a record low of $115/kWh, the most significant annual decline since 2017.</p>
<p>Battery enclosures have also witnessed technical improvements, enabling denser cell packing, improved insulation, and reduced maintenance, particularly in hot and arid regions. Simpler integration further reduces system installation costs.</p>
<p>The development of sodium-ion batteries could potentially eliminate the need for lithium entirely and further reduce costs. The first grid-scale sodium-ion system is already operational.</p>
<p>Despite these advances, battery deployment remains in its early stages of development. In 2024, only 169 GWh of grid-scale battery capacity was installed globally, despite 1,450 GWh of battery manufacturing capacity already being in place. This includes electric vehicle batteries and is more than enough to support the 585 GW of solar capacity added in 2024 at a ratio of over 2 kWh of battery per 1 kW of solar panel.</p>
<p>Global energy storage capacity additions are <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes" target="_blank" rel="noopener">expected</a> to grow by 35% in 2025 to 94 GW or 247 GWh, according to BloombergNEF’s latest outlook.</p>
<p><strong>Shortfall Variation</strong></p>
<p>A standard configuration of 6 GW of solar energy paired with 17 GWh of battery storage was tested across 12 cities worldwide to assess how close each location could get to delivering firm, round-the-clock solar electricity year-round. The analysis revealed that the sunniest cities can achieve over 90% of full 24/365 reliability, but seasonal and climatic variations still impact output, especially during extended periods of cloudy weather.</p>
<p>Even in high-irradiance cities like Las Vegas, which achieves 97% reliability, shortfalls occur in winter, when daylight drops to just over nine hours on the shortest day, nearly three hours below the average.</p>
<p>Across the hemisphere, in Hyderabad, India, another city with high irradiance, monsoon clouds rather than winter, caused dips in solar generation.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81237 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png" alt="Battery Storage" width="602" height="491" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2-300x245.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2-600x489.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a></p>
<p>In Spain, Madrid experienced its worst gaps during November and December due to low sun angles and frequent overcast skies. Birmingham in the UK saw limited sunlight even in summer, managing just two months of consistent solar generation.</p>
<p>In China, Wuhan suffered from dense cloud cover throughout the year.</p>
<p>Muscat in Oman performed best overall, reaching 99% of the way to 24/365 solar generation. Other top performers included Mexico City, Mexico (96%); Johannesburg, South Africa (95%); Manila, Philippines; and Abuja, Nigeria (both 92%).</p>
<p>Four other cities surpassed the 80% mark: Hyderabad (89%), Madrid (88%), Buenos Aires, Argentina, and Washington, D.C. (both 81%). Only Wuhan (74%) and Birmingham (62%) fell short due to persistent cloudiness and lack of sunlight during the winter months.</p>
<p><strong>Commercial and Industrial Consumers</strong></p>
<p>Commercial and industrial users are also turning to behind-the-meter microgrids to reduce reliance on the grid and shield themselves from price volatility and outages.</p>
<p>Notable examples include the 100 MW Moro Hub data center in the United Arab Emirates, powered entirely by a co-located solar project. In West Virginia, U.S., a 106 MW solar microgrid with 261 MWh of storage can power titanium melting operations. Saudi Arabia’s tourism development now operates 16 resorts using a 400 MW solar project with 1.3 GWh of battery storage.</p>
<p><strong>Regulatory and Financial Barriers </strong></p>
<p>The Ember report identified entrenched regulatory and financial mindsets as the primary obstacles to delivering 24-hour solar power. While the systems are now mature, cost-effective, and capable of providing round-the-clock clean energy, power planners, regulators, and financiers remain either unaware of the potential or skeptical of its reliability.</p>
<p>Properly designed solar battery systems can meet or exceed these reliability standards, especially when supplemented by modest oversizing, grid electricity, or rarely-used backup generators. Unlike fossil fuels, solar systems benefit from increasingly accurate weather forecasting and lower maintenance requirements.</p>
<p><strong>Reduction in Grid Costs</strong></p>
<p>The report stated that integrating 24-hour solar with battery storage offers a strategic advantage at the national level by reducing the need for costly grid expansion. While not a standalone solution, solar-plus-storage plays a vital role in balancing the grid alongside other resources such as wind, hydro, geothermal, interconnectors, and flexible demand systems.</p>


24-Hour Uninterrupted Solar Power with Battery Storage is Real: Ember


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					</table><p>The U.S. energy storage market added more than 2 GW across all segments in the first quarter (Q1) of 2025, marking the highest Q1 on record, according to the latest U.S. Energy Storage Monitor report from the <a href="https://cleanpower.org/" target="_blank" rel="noopener">American Clean Power Association</a> and <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81231 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png" alt="Woodmac 1" width="632" height="527" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png 632w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-300x250.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-624x520.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-600x500.png 600w" sizes="(max-width: 632px) 100vw, 632px" /></a></p>
<p>The utility-scale energy storage market added 1,558 MW of capacity in Q1 2025, a 57% year-over-year (YoY) increase. Deployments rose 33% to 4,078 MWh from 3,056 MWh in the same period of the previous year.</p>
<p>California led with 457 MW of installed capacity, followed by Indiana with 256 MW. Arizona and Texas added 255 MW each, and Nevada 200 MW. Texas led this quarter in terms of project count with eight projects installed, followed by California, where the biggest project, with 240 MW of capacity, was brought online.</p>
<p>Residential energy storage posted the highest relative growth across all segments. Installed power capacity <a href="https://www.mercomindia.com/us-energy-storage-market-deployed-in-q1-2024-up-89-yoy" target="_blank" rel="noopener">rose</a> 82% to 458 MW in Q1 2025 from 252 MW in Q1 2024. Energy capacity grew to 893 MWh from 516 MWh, a 73% YoY increase. The residential segment continued to grow with expansion in the California and Puerto Rico markets. These two markets contributed 74% to the overall growth.</p>
<p>Illinois emerged as a new market with net billing, although attachment rates have not yet reached the anticipated levels. Like with other segments, there are continued efforts across the country to take advantage of existing tax credits this year while they remain available.</p>
<p>The commercial, community, and industrial (CCI) segment also recorded gains. Power capacity additions increased to 26 MW in Q1 2025, up from 19 MW in Q1 2024, representing a 33% jump. Energy capacity additions increased by 6%, rising to 63 MWh from 59 MWh over the same period.</p>
<p>The California CCI sector is struggling as the state faces challenges from the slow adoption of NEM 3.0 projects. Additionally, the limited number of new community storage projects this quarter hindered growth in the segment.</p>
<p>A key growth driver in this quarter was the decline in system costs. The average price of utility-scale battery systems fell to $874/kW in Q1 2025, down from $1,165/kW in Q1 2024. This represents a 25% reduction, which has helped improve the economics of storage projects and broadened deployment across market segments.</p>
<p>The pipeline for future utility-scale projects also expanded. By the end of Q1 2025, the total utility-scale segment pipeline stood at 603 GW. This pipeline includes 127 GW of projects in Wood Mackenzie&#8217;s database and 476 GW in interconnection queues. The total represents a 12% increase from Q1 2024, which had a pipeline of 538 GW.</p>
<p><strong>Outlook</strong></p>
<p>Across all segments, 15.2 GW/48.7 GWh of capacity will be added in 2025. In the near term, all segments of the energy storage market are expected to face policy-related challenges. Despite this issue, cumulative installations are projected to reach 79.8 GW and 289.4 GWh.</p>
<p>This year is on track to set new records for utility-scale storage, with a 22% YoY anticipated growth rate. However, political uncertainty is likely to dampen progress in 2026, with the utility-scale segment expected to decline by 29% compared to 2025.</p>
<p>Throughout Q1 and Q2, fluctuating tariff rates have restricted battery procurement from China. Unless there are changes to the Investment Tax Credit (ITC) or Section 45X, the market is forecast to rebound in 2028 and 2029.</p>
<p>Over the next five years, cumulative installations are expected to match earlier projections despite short-term volatility. Long-term demand is driven by strong interest in renewables from hyperscalers, capacity constraints in independent system operators, and state-level targets.</p>
<p>The residential storage market is set to expand by 45% in 2025. This growth will be supported by stabilized tariffs, continued price declines, and program expansions. The net billing transition in select regions will also contribute to higher adoption rates.</p>
<p>Growth in the CCI segment remains limited. Lower-than-expected uptake in California, along with ongoing uncertainty surrounding tariffs and policy measures, has slowed momentum. The segment continues to face difficulties due to the complexity of applications and weak project economics. Any further reduction in tax credit availability could place additional pressure on its growth trajectory.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81232 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png" alt="Woodmac 2" width="648" height="511" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png 648w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-300x237.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-624x492.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-600x473.png 600w" sizes="(max-width: 648px) 100vw, 648px" /></a></p>
<p><strong>House Reconciliation Bill Impact</strong></p>
<p>Provisions in the House reconciliation bill are expected to <a href="https://www.mercomindia.com/us-senate-budget-bill-proposes-to-slash-solar-wind-incentives-from-2026" target="_blank" rel="noopener">impact</a> the energy storage sector. The projected range of possible outcomes over the next five years spans a 29.5 GW difference between the high and low scenarios.</p>
<p>In the high case, an additional 8 GW of storage capacity would be deployed over the next five years. This outlook assumes that federal clean energy tax credits remain in place, no new tariffs are introduced under the Trump administration, and that renewables paired with storage are actively used to meet growing electricity demand. The high case also assumes improvements in financing conditions and fewer interconnection delays.</p>
<p>The low-case forecast predicts a 27% decline in total installations from 2025 through 2029. This scenario assumes that the reconciliation bill passes in its final form in the House of Representatives. Under these conditions, projects would be required to begin construction within sixty days of the bill&#8217;s passage and be operational by the end of 2028.</p>
<p>The sudden end of the ITC would lead to widespread cancellations as developers struggle to qualify and financial institutions grow increasingly risk-averse. The low case also expects continued trade friction between the U.S. and China, with tariffs remaining volatile through 2026. These conditions would likely drive up system prices and create further procurement delays. For the residential sector, the assumption is that the tax credit under Section 25D would expire after 2025, including for leased systems.</p>


US Energy Storage Hits New Q1 Record with Over 2 GW Installed


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					</table><p>The New Jersey Board of Public Utilities (<a href="https://www.nj.gov/bpu/" target="_blank" rel="noopener">NJBPU</a>) has approved Phase 1 of the Garden State Energy Storage Program (GSESP) with a target of 1,000 MW of energy storage systems (ESS).</p>
<p>Under Tranche 1 of Phase 1, the first solicitation aims to award 350-750 MW. The pre-qualification process, which started on June 25, 2025, has a final bid submission deadline of August 20, 2025.</p>
<p>The NJBPU expects to issue awards for Tranche 1 by October 31, 2025.</p>
<p>GSESP is a multi-phase program designed to deploy 2 GW of energy storage by 2030, a mandate established by the Clean Energy Act of 2018.</p>
<p>By bringing more energy storage online, GSESP will help increase the overall power supply that can be dispatched when needed. This increased supply is expected to mitigate wholesale electricity costs, which are a significant component of electric bills.</p>
<p>The execution of energy storage projects under the GSESP will also reduce long-term electricity costs through improved system efficiency.</p>
<p>Phase 1 of the program will be funded primarily through the New Jersey Clean Energy Program budget.</p>
<p>NJBPU also plans to use existing funds for Phase 1 without increasing rates for consumers. The utilization of existing funds could ensure no new or increased charges are added to ratepayers’ current electric bills.</p>
<p>Tranche 2 will issue a tender to allocate the remaining capacity to reach the target capacity of 1,000 MW.</p>
<p>Under Phase 2, the program will shift its focus to distributed energy storage, beginning in 2026. It will offer incentives for smaller grid-connected systems, including both front-of-the-meter and behind-the-meter projects. These incentives will include a combination of fixed payments and performance-based rewards.</p>
<p>NJBPU might introduce a performance-based incentive for transmission-scale systems under Phase 3, which is still under evaluation.</p>
<p>This program directly addresses demand growth and limited supply — the root causes of recent rate increases — while simultaneously building a major part of the state’s clean energy future.</p>
<p>According to BloombergNEF’s latest outlook, released recently, global energy storage capacity additions are <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes" target="_blank" rel="noopener">expected</a> to grow by 35% in 2025 to 94 GW or 247 GWh. BNEF forecasts a compound annual growth rate of 14.7% between 2025 and 2035, with yearly additions reaching 220 GW or 972 GWh by 2035.</p>
<p>According to the latest U.S. Energy Storage Monitor report from the American Clean Power Association and Wood Mackenzie, <a href="https://mercomindia.com/us-energy-storage-market-hit-new-record-with-12-3-gw-installations" target="_blank" rel="noopener">released</a> in March 2025, the U.S. energy storage market hit a new record with 12.3 GW installations across all segments in 2024.</p>


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