NTPC Invites Bids For 1.2 GW Solar Project With Energy Storage

NTPC Renewable Energy has issued a tender to select solar power generators for a 1.2 GW solar + BESS project. The project includes a 600 MW/2400 MWh (600 MW × 4 hours) energy storage system (ESS) to be located anywhere in India (SOLAR-ESS-01). NTPC has invited bids until February 27, 2025.

The tender stated, “The minimum project size would be 50 MW, with increments in multiples of 10 MW thereafter. The maximum capacity to be allotted to a single bidder would be 600 MW with a 300 MW/1200 MWh energy storage system. Further, an ESS of at least 0.5 MW/2 MWh capacity for 1 MW of project capacity will be installed as part of the project. The project can be developed anywhere in India on a Build-Own-Operate (BOO) basis.” It also mentioned, “All bids must be accompanied by an Earnest Money Deposit (EMD) at a rate of ₹16.38 lakh per MW.”

Recent tender bids have come in at very attractive prices, with NHPC getting bids at Rs 3.09 for a recent auction. Prices could fall further, going by the bids received by RVUNL for its own tender at Rs 2.21 with viability gap funding. That translates to effective bids in the region of Rs 3.00/kWh being a real possibility now.

NTPC Expands in the Energy Storage Segment

NTPC is steadily advancing its energy storage initiatives. Earlier this year, in 2025, NTPC released tenders to build and test a pilot project for proof of concept. The tender aims to replace diesel generators (DGs) with battery energy storage systems (BESS) at the Dadri Thermal Plant Stage-I.

NTPC’s renewable energy arm, NTPC REL, also issued a tender to develop a 2500 MW/10,000 MWh Battery Energy Storage System (BESS) project. The NTPC subsidiary has planned the project to be distributed across NTPC thermal power stations, with each station having a capacity of 500 MW/2000 MWh. The project will have a tentative minimum bid size of 250 MW/1000 MWh (two blocks of 250 MW for each plant). All capacities will be measured at the 400 kV/220 kV interconnection points.

Other Renewable Energy Players Join the Energy Storage Push

Other renewable energy independent aggregators (REIAs), like NHPC, are also exploring energy storage options alongside their solar projects. NHPC recently issued a tender for a battery energy storage system (BESS) in Kerala. The tender aims to select developers for a 125 MW/500 MWh (InSTS) connected standalone BESS (NHPC-Tranche-I-BESS). The project, located in Kerala, will include viability gap funding (VGF) support for 2024-25. Telangana is also considering energy storage solutions to meet its growing on-demand energy requirements.