India’s state-owned hydropower company, NHPC Ltd., has issued a tender for the development of 1.2 GW of grid-connected solar photovoltaic (PV) projects, integrated with 600 MW/2,400 MWh of energy storage systems (ESS). This initiative includes a “greenshoe” option, allowing for an additional capacity of up to 1.2 GW of solar PV with ESS, effectively doubling the potential capacity to 2.4 GW.
Tender Details and Development Framework
Under the tender requirements, developers are responsible for identifying, building, owning, and operating the projects. For every 1 MW of solar capacity, a minimum of 0.5 MW/2 MWh of storage is mandated. The ESS component can be directly owned by the solar developer or arranged through a third-party supplier to ensure stable power delivery.
The minimum project size is set at 50 MW, necessitating at least 25 MW/100 MWh of storage capacity. For projects located in the Northeastern states and designated special categories, the minimum capacity is 30 MW, with a corresponding 15 MW/60 MWh ESS component.
25-Year Power Purchase Agreements (PPAs)
NHPC will enter into long-term power purchase agreements (PPAs) with successful bidders, securing a 25-year commitment. The electricity generated will be supplied to state utilities, distribution companies (Discoms), and other authorized buyers. This initiative aims to enhance India’s renewable energy mix while offering investors long-term revenue stability.
Greenshoe Option: Expanding Market Opportunities
A notable feature of this tender is the inclusion of a “greenshoe” option, enabling developers to scale their projects beyond the initial 1.2 GW limit. This mechanism allows for an additional 1.2 GW of solar PV, with a proportional ESS component, offering flexibility and encouraging higher investment in India’s renewable energy market.
Key Dates and Industry Context
The tender process officially commenced on March 26, 2025, with a submission deadline of April 24, 2025. This follows NHPC’s recent initiatives in renewable energy, including a 1.2 GW wind-solar hybrid tender with an equivalent greenshoe option in December 2024 and a 1.2 GW solar-plus-storage tender in September 2024.
Driving India’s Renewable Energy Transition
India is aggressively expanding its renewable energy capacity, aiming for 500 GW of non-fossil energy installations by 2030. This NHPC tender is expected to play a crucial role in strengthening the country’s energy storage infrastructure, improving grid reliability, and accelerating the transition toward sustainable energy solutions.
With strong market interest, this tender is poised to attract leading developers and investors, further solidifying India’s position as a global renewable energy leader.
