NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of NTPC, recently concluded a groundbreaking auction to develop a 250 MW/1,000 MWh standalone Battery Energy Storage System (BESS) — one of India’s first such tenders where participating developers are also responsible for charging capacity and quote tariffs per kWh
Winners:
Sunsure Energy was awarded 125 MW/500 MWh at a tariff of ₹6.64 per kWh (~USD 0.0768/kWh).
Enerica Infra 3 (operating as EnerGrid) secured the remaining 125 MW/500 MWh at ₹6.65 per kWh (~USD 0.076)
The tender, issued in February 2025, includes a Viability Gap Funding (VGF) provision of up to ₹27 lakh per MWh (about 30% of the project’s capital cost) or up to ₹2.7 million per MWh, whichever is lower
🚀 Why This Auction Matters
First-of-its-kind structure: For the first time in India, BESS developers are responsible for providing charging infrastructure, and tariffs have been quoted in INR/kWh instead of INR/MW-month, adding clarity and efficiency .
Operational benchmarks: Developers must ensure at least 95% system availability per month. If NVVN can’t take scheduled energy, penalties are imposed (NVVN pays ~52.88% of the tariff for unused scheduled energy). Liquidated damages apply if availability falls short, compensating at twice the composite discharge value.
Flexibility in operation: The systems must support a maximum discharge duration of four hours and be interconnected across ISTS (interstate transmission system) substations across India
📈 Broader Context & Green Energy Push
This BESS auction is a strategic milestone in India’s transition to clean energy:
It supports the integration of intermittent renewables like solar and wind by facilitating energy dispatch during peak demand.
India targets 500 GW of non‑fossil fuel capacity by 2030, and large-scale storage plays a crucial role in meeting that goal.
Complementary projects in Maharashtra’s state energy sector and four new hydrogen innovation clusters further underscore the government’s proactive push toward sustainable infrastructure
🗓️ Project Timeline & Investment
Timeline: The tender launched in February 2025 and concluded in late July 2025.
Commissioning: Sunsure plans to commission its installation by Q4 FY 2027, with an investment of about ₹1,000 crore ($120m), split evenly between BESS and sourcing renewable energy for charging via solar generation in Uttar Pradesh—located near Jhansi’s Garoutha substation on the 220 kV grid
✅ Summary Snapshot
| Feature | Detail |
|---|---|
| Auction Size | 250 MW / 1,000 MWh |
| Winning Firms | Sunsure Energy (125 MW) & Enerica Infra 3 (125 MW) |
| Tariffs | ₹6.64/kWh (Sunsure), ₹6.65/kWh (EnerGrid) |
| VGF Scheme | ₹27 lakh/MWh or 30% of capital cost |
| Required Availability | ≥95% system uptime monthly |
| Discharge Duration | 4 hours |
| Commissioning Target | Q4 FY 2027 |
| Strategic Significance | Boosts grid reliability, supports renewables |
India’s first large-scale BESS auction of this structure not only sets a tariff benchmark but also reflects the growing maturity and transition-readiness of its renewables ecosystem.
