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India Energy Storage Update – May 2025: Big Leaps in BESS, Policy Boosts, and Record Investments

May 2025 saw significant activity in India's energy storage sector with notable progress in PPAs, tenders, project awards, investments, and enabling policies.

PPAs Signed:

JSW signed a 1.5 GW/12 GWh pumped hydro PPA with UPPCL in Uttar Pradesh at INR 77.2 lakhs/MW/year. Reliance NU Suntech inked a PPA with SECI for 930 MW solar plus 465 MW/1,860 MWh BESS at INR 3.52/kWh. GERC approved GUVNL’s 500 MW/1 GWh BESS tariff at INR 2.25 lakhs/MW/month.

Tenders Floated:

Seven major tenders were released. NTPC led with 3 BESS tenders across Kerala, Telangana, and a floating solar-BESS hybrid. AEML issued a 500 MW/2500 MWh storage tender with a 250 MW greenshoe. Powergrid launched solar+BESS projects in Ladakh. KREDL floated a 250 MW solar + 250 MW/1100 MWh BESS tender.

Project Awards:

SJVN's 1.2 GW solar + 2.4 GWh BESS tender went to SAEL, Jindal, Sembcorp, JBM RE, and Hindustan Power at INR 3.32/kWh. NHPC Kerala's BESS tender was awarded to NTPC Green, Opera Energy, and TPREL (INR 4.34–4.58 lakhs/MW/month). SECI’s RTC-2 tender saw only 432 MW awarded at INR 5.06/kWh.

Investments:

ReNew announced a massive INR 22,000 crore investment in AP for 1.8 GW solar, 1 GW wind, and 2 GWh BESS. IFC confirmed financing participation in India’s largest stationary BESS project (Indigrid, Gujarat).

Policy Moves:

NCT discussed BESS as a lower-cost alternative to HVDC lines in Rajasthan. CTUIL recommended 3 acres/100 MWh as BESS land benchmark. Rajasthan mandated BESS for captive projects exceeding 100% contract demand. The Forum of Regulators proposed duty waivers and ISTS charge exemptions to support pumped storage projects.