Indigrid, Kintech Synergy, And HG Infra Secure 500 MW BESS Projects In NVVN’s First VGF-Supported Auction

In a significant development, IndiGrid 2 Limited, Kintech Synergy Private Limited, and H.G. Infra Engineering Limited have secured contracts in NVVN’s recent auction for standalone battery energy storage systems (BESS) with Viability Gap Funding (VGF) support. The auction was for a total capacity of 500 MW/1000 MWh, and it represents NVVN’s first standalone BESS tender with VGF assistance.

The discovered tariff for this auction ranged between ₹2.37 and ₹2.38 lakhs per MW per month. IndiGrid 2 Limited won the largest share with 250 MW at a tariff of ₹2.36999 lakhs/MW/month. Kintech Synergy Private Limited secured 65 MW at ₹2.3749 lakhs/MW/month, and H.G. Infra Engineering Limited obtained 185 MW at ₹2.38 lakhs/MW/month. These rates represent a considerable decrease compared to recent tariffs observed this year, which were between ₹3.72 and 4.48 per kWh for similar tenders but without VGF support. The current tariffs show a 36% reduction from the lowest tariff seen previously, reflecting the impact of VGF support and the ongoing decline in battery energy storage system costs.

The tender was launched in September 2024, and projects selected under this round will be eligible for Central Financial Assistance through VGF. The total BESS capacity eligible for VGF is 4,000 MWh, which will be allocated in multiple phases. This phase marks the first part of that allocation. The selected BESS developers must make the battery systems available to NVVN for on-demand charging and discharging.

Developers are responsible for setting up and interconnecting the BESS with the ISTS network. Although the tender does not mandate a specific battery storage technology, it requires the systems to meet the performance criteria defined for BESS. The project capacity will connect to one of the designated ISTS substations. This tender aims to support the deployment of commercially viable and operational technologies to minimize risks and ensure that the projects are commissioned on time.