Solar & Wind Power Company Secures 275 MW/550 MWh Battery Storage Projects with NHPC in Andhra Pradesh

DSIJ Intelligence-2 / 19 Jul 2025/ Categories: Mindshare, Trending

Solar & Wind Power Company Secures 275 MW/550 MWh Battery Storage Projects with NHPC in Andhra Pradesh

The stock has given over 50 per cent returns from its 52-week low of Rs 167.55 per share.

ACME Solar Holdings, through its wholly-owned subsidiaries, has officially signed Battery Energy Storage Purchase Agreements (BESPA) with NHPC. This agreement encompasses a total contracted capacity of 275 MW / 550 MWh across two Standalone Battery Energy Storage System (BESS) projects.

These significant projects were awarded to ACME Solar following an e-reverse auction held on June 24, 2025. The tariffs secured are Rs 2,10,000 per MW per month for the 50 MW / 100 MWh project and Rs 2,22,000 per MW per month for the 225 MW / 450 MWh project. These initiatives are supported by the Government of India's Viability Gap Funding (VGF) scheme, which provides Rs 27 lakh per MWh or 30 per cent of the total project cost, whichever is lower, as VGF.

Letters of Award (LOA) for these projects were granted on July 8, 2025. The rapid progression from LOA to the signing of the BESPA is largely attributed to the prior identification of Andhra Pradesh as the customer. The Standalone BESS installations will be established at the customer site, with land and evacuation infrastructure being provided by the customer, which is expected to expedite the execution of these projects. These pioneering projects in Andhra Pradesh are anticipated to be commissioned within 18 months from the signing of the BESPA.

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The company has a market cap of over Rs 15,000 crore. The shares of the company have a PE of 66x, an ROE of 8 per cent and an ROCE of 8 per cent. The stock has given over 50 per cent returns from its 52-week low of Rs 167.55 per share.

The company’s current portfolio includes 6,970 MW of capacity across solar, wind, hybrid, and storage solutions, with 2,890 MW operational and 4,080 MW under development. It also operates 550 MWh of storage capacity. With in-house Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) divisions, ACME Solar is positioned to deliver cost-effective and timely execution while maintaining industry-standard Capacity Utilization Factors (CUF) and operating margins.

This move further strengthens India’s clean energy infrastructure and reflects ACME Solar’s strategic focus on energy storage as a core pillar of renewable energy deployment.

Disclaimer: The article is for informational purposes only and not investment advice.