NTPC Green Energy, Opera Energy, and Tata Power Renewable Energy won NHPC’s auction to develop 125 MW/500 MWh standalone battery energy storage systems (BESS) connected to the intrastate transmission system in Kerala (Tranche I).

NTPC Green won 40 MW/160 MWh capacity at a tariff of ₹434,000 (~$4,953.21)/MW/month at the Sreekantapuram substation. It also won another 40 MW/160 MWh at a tariff of ₹457,000 (~$5,215.70)/MW/month at the Pothencode substation.

Opera won 15 MW/60 MWh capacity at a tariff of ₹438,000 (~$4,998.86)/MW/month at the Mulleria substation. Tata Power won 30 MW/120 MWh at a tariff of ₹438,000 (~$4,998.86)/MW/month at the Areacode substation.

The tender was issued in January this year.

The winners must commission the projects within 18 months of signing the battery energy storage purchase agreement.

The developers will be eligible for viability gap funding of ₹2.7 million (~$30,814.88)/MWh or 30% of the project’s capital cost, whichever is lower.

They must provide a security deposit of ₹500,000 (~$5,776)/MWh to NHPC before declaring the commissioning of the project’s first part capacity. They must also ensure the BESS is available for at least one operational cycle per day, maintain a minimum monthly system availability of 95%, and guarantee a monthly AC-to-AC round-trip efficiency of 85%.

Kerala State Electricity Board will prioritize renewable energy sources for BESS charging.

The winners must employ commercially established and operational technologies, compliant with the guidelines specified codes and standards to minimize technological risks.

India installed over 341 MWh of BESS in 2024, marking an over sixfold increase from the 51 MWh installed in 2023, according to Mercom India Research’s newly released report India’s Energy Storage Landscape. With these additions, India’s total installed battery energy storage capacity stood at approximately 442 MWh as of December 2024.

Mercom had previously reported on the growing importance of BESS as a key solution for balancing power generation and consumption, especially as India’s grid becomes more complex with the increasing integration of renewable energy. BESS plays a vital role in stabilizing the grid by smoothing out fluctuations in renewable power output and enabling the use of surplus energy generated during the day to meet peak demand in the evening.

According to the National Electricity Plan released by the Central Electricity Authority, India will need nearly 74 GW/411 GWh of energy storage capacity by 2032. This is crucial for supporting the integration of an estimated 364 GW of solar and 121 GW of wind energy capacity.