In a major move to strengthen India’s renewable energy reliability, the Central Electricity Regulatory Commission has approved tariffs for a large 2,000 MW solar power project integrated with energy storage. The project has been developed under the leadership of the Solar Energy Corporation of India, aiming to make solar power more stable and available even after sunset.
This initiative includes 1,000 MW of energy storage systems, which will help convert solar energy into “firm and dispatchable” power. One of the biggest challenges with solar energy is that it is only generated during the day, but electricity demand often rises in the evening. By adding storage, excess power generated during the day can be saved and used later, especially during peak hours between 6:00 PM and midnight.
The project was awarded under the SECI-ISTS-XX tranche, following guidelines issued by the Ministry of Power for renewable energy projects combined with storage. The bidding process saw strong participation from 27 companies, showing high interest from the industry. After a competitive e-reverse auction held in October 2025, 11 developers were selected.
Out of these, eight companies secured capacity at a tariff of ₹2.86 per kWh. Major developers such as Welspun Renewable Energy, Shivalaya Construction, and Purvah Green Power were among the winners. Other selected firms include MB Power, Oswal Cables, Banyan Insolation, LC Infra Projects, and Stockwell Solar Services. Additionally, three companies—SAEL Industries, GH2 Solar, and Navayuga Green Energy—won capacity at a slightly higher tariff of ₹2.87 per kWh.
To ensure reliable performance, the project comes with strict operational conditions. For every 1 MW of solar capacity, developers must install at least 0.5 MW of storage capacity. This requirement ensures that sufficient energy is stored for use during non-solar hours. Developers must also maintain a minimum annual capacity utilization factor of 19 percent, which ensures that the plants generate a consistent amount of electricity throughout the year.
The financial structure of the project has also been clearly defined. SECI will act as an intermediary agency by signing long-term power purchase agreements with the developers for 25 years. It will then sell this power to distribution companies through separate agreements. The Commission has approved a trading margin of ₹0.07 per kWh for SECI, provided it maintains proper payment security mechanisms such as letters of credit. If these conditions are not fulfilled, the margin will be reduced to ₹0.02 per kWh.
This approval is an important step in improving the stability of India’s power system. By combining solar energy with storage, the project helps ensure a steady supply of clean electricity even during peak demand hours. It also supports distribution companies in meeting their renewable purchase obligations while reducing dependence on fossil fuels.
Overall, the decision highlights how large-scale storage integration can make renewable energy more dependable. It sets an example for future projects and moves India closer to building a strong, clean, and reliable energy system.
