India’s largest power producer, NTPC Limited, has launched a major tender for battery energy storage systems (BESS), signaling a decisive step in the country’s energy transition. The state-owned utility is seeking engineering, procurement, and construction (EPC) partners to deliver 1,700MW/4,000MWh of storage capacity across 11 thermal power plant sites in Uttar Pradesh.
The tender, issued on 8 August, covers both short-duration and longer-duration storage: 1,400MW of 2-hour systems (2,800MWh) and 300MW of 4-hour systems (1,200MWh). Each asset is designed for a 12-year service life with daily cycling expected twice per day, and bidders must also include annual maintenance contracts as part of their proposals.
A Utility in Transition
NTPC, formerly known as the National Thermal Power Corporation, has historically been synonymous with coal-fired generation. With over 80GW of installed capacity, the company still accounts for roughly a quarter of India’s electricity output. Yet, the new tender illustrates how legacy thermal operators are seeking to reposition themselves in an era of growing renewable integration.
By embedding BESS into existing coal power plant sites, NTPC is effectively turning conventional infrastructure into hybrid hubs capable of balancing variable renewable energy and providing firm capacity to the grid. This model—repurposing thermal facilities with energy storage—has strong implications for countries where coal remains dominant but is under pressure to decarbonise.
Market Development Under Pressure
India has emerged as one of the most active tendering markets for large-scale energy storage, with the government mandating standardized frameworks since 2022 and committing support for more than 43GWh of capacity through a Viability Gap Funding (VGF) scheme that covers up to 30% of capital expenditure.
According to the India Energy Storage Alliance (IESA), cumulative tenders for 171GWh of storage had been issued by mid-2025, including 55GWh in the first half of this year alone. However, the gap between procurement announcements and operational assets remains wide: fewer than 220MWh of utility-scale BESS are currently online.
Analysts warn that aggressive tariff-based bidding, often driven by reverse auctions, has pushed project pricing to unsustainable levels. The Institute for Energy Economics and Financial Analysis (IEEFA) notes that developers face difficulties securing grid connections and finalizing offtake agreements, raising concerns about whether awarded projects can realistically be built on schedule.
Implications for Global Markets
For international EPCs and battery suppliers, NTPC’s 4GWh procurement offers one of the largest immediate opportunities in Asia. The scale of the projects, alongside India’s policy support mechanisms, could attract global players experienced in deploying commercial and industrial energy storage and large battery energy storage systems (BESS).
At the same time, the tender reflects a broader trend relevant to European markets: integrating energy storage into conventional power infrastructure. As Europe grapples with coal phaseouts, the Indian model of co-locating BESS with thermal plants highlights a potential pathway for ensuring grid stability while accelerating renewables.
Outlook
NTPC’s latest call for bids underscores both the ambition and challenges of India’s storage roadmap. If successfully executed, these projects would mark a significant leap from tendering on paper to megawatts on the ground, offering valuable lessons for other regions seeking to scale C&I ESS and utility-scale storage.
Yet, the execution risk cannot be ignored. Bridging the gap between policy ambition and operational reality will require not only competitive pricing but also robust project delivery, financing, and grid integration strategies.
As India moves forward, Europe and other global markets will be watching closely. The success—or failure—of NTPC’s storage deployment could set the tone for how emerging economies approach the delicate balance of decarbonisation, reliability, and affordability.
