Juniper Green Files Draft Papers with SEBI for ₹30 Billion IPO

Waaree Solar Secures 540 MW Solar Module Order from US Developer

MNRE Introduces IoT-Based Monitoring of Data Under Biomass Energy Program

Gujarat Regulator Grants 343-Day Extension for 70 MW Wind-Solar Project

INOX Acquires Skypower Solar India’s 50 MW Solar Project in Madhya Pradesh

MENA Weekly Roundup: Egypt Launches $200 Million Solar Components Plant

Daily News Wrap-Up: Virtual PPA Framework in India Needs Regulatory Backing

Government Plans India Energy Stack to Digitalize Power Sector

Mercom Renewables Summit Returns for its Fifth Edition in July 2025

Premier Energies Commissions 1.2 GW TOPCon Cell Manufacturing Line


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					</table><p><strong>Egypt</strong>’s <strong>Suez Canal Economic Zone</strong> and Chinese firm <strong>Sunrev Solar</strong> <a href="https://sczone.eg/with-investments-of-200-million-chairman-of-sczone-witnesses-groundbreaking-ceremony-for-an-integrated-solar-energy-components-industrial-complex-in-sokhna-spanning-200000-square-meters/" target="_blank" rel="noopener">commenced</a> construction of an integrated solar energy components industrial complex in Ain Sokhna. Spanning 200,000 sq m and backed by a $200 million investment, the project will be developed in two phases. The first phase, valued at $90 million, will comprise two factories designed to produce 2 GW of solar cells and modules. The second phase, valued at $110 million, will localize the production of key raw materials, including silicon ingots and wafers.</p>
<p>The <strong>Arab Petroleum </strong><strong>Investments Corporation (APICORP)</strong> <a href="https://english.ajel.sa/business/apicorp-funds-sirajpower-with-50mn-for-solar-energy-projects" target="_blank" rel="noopener">extended</a> a $50 million credit facility to the <strong>United Arab Emirates (UAE)</strong>-based <strong>SirajPower</strong> to boost its portfolio of distributed solar energy projects across the Middle East. The financing represents the largest lease-funding platform for solar projects in the Gulf Cooperation Council countries. It aims to support businesses in reducing their utility bills and lowering carbon emissions. Ahmed Attiga, CEO of APICORP, stated that the investment is part of the company’s $450 million renewable energy commitment over the next four years.</p>
<p><strong>The UAE’s Sharjah <a href="https://masdar.ae/en/news/newsroom/sultan-bin-ahmed-inaugurates-sharjah-1st-solar-plant-sana" target="_blank" rel="noopener">inaugurated</a> its first utility-scale solar facility, “SANA,” with a capacity of 60 MW and an area of 850,000 square meters</strong>. Located near the Sajaa Gas Plant, the solar project will supply clean power to the Sharjah National Oil Corporation’s operations and feed surplus electricity to the Sharjah Electricity, Water and Gas Authority. The project was executed in collaboration with <strong>Emerge</strong>, a joint venture between <strong>Masdar </strong>and <strong>EDF</strong>, which will also handle its operation and maintenance over the next 25 years.</p>
<p><strong>Algeria</strong>’s state-owned oil company <strong>Sonatrach</strong> has <a href="https://fuelcellsworks.com/2025/06/25/h2/sonatrach-hecate-and-tosyali-launch-feasibility-study-for-green-hydrogen-in-algeria-s-steel-sector" target="_blank" rel="noopener">signed</a> a memorandum of understanding with <strong>U.S.-</strong>based <strong>Hecate Renewable Energy</strong> and steel maker <strong>Tosyali Algerie</strong> to evaluate a green hydrogen production project powered by renewables, aimed at decarbonizing Algeria’s steel sector.</p>



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					</table><p>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">MHI</a>) has launched the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI),’ inviting global and domestic manufacturers to establish electric vehicle (EV) production facilities in the country.</p>
<p>The application portal will remain active until October 21, 2025.</p>
<p>The program aims to attract major global EV manufacturers by offering a reduced customs duty structure and a policy framework that encourages long-term investments in India’s automotive sector.</p>
<p>MHI had recently MHI had recently <a title="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" href="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" target="_blank" rel="noreferrer noopener">issued</a> guidelines for SPMEPCI. Investments under this program must target domestic manufacturing of eligible products. If the program’s investment is directed towards a brownfield project, there must be a clear physical separation from current manufacturing facilities.</p>
<p>The guidelines also allow applicants to import completely built units of electric four-wheelers with a minimum cost, insurance, and freight value of $35,000 (~₹2.99 million) at a reduced customs duty rate of 15% for five years from the date of application approval.</p>
<p>To qualify for the program, manufacturers must commit a minimum investment of ₹41.5 billion (~$485.33 million). The program also includes clear domestic value addition targets and requires applicants to meet specified localization milestones to support the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.</p>
<p>These provisions are designed to ensure that the development of domestic capabilities accompanies the transfer of EV technology. They also aim to ensure that India benefits from both foreign direct investment and increased local innovation.</p>
<p>Earlier this year, the Ministry <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 electric vehicle components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-2024" target="_blank" rel="noopener">reached</a> a record 1.95 million units in 2024, representing an over 27% year-over-year growth from the 1.53 million units sold in 2023. These vehicles accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.</p>


Government Opens Doors to Global Electric Car Makers with Portal Launch


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					</table><p>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has proposed amendments to the guidelines for the tariff-based competitive bidding process to procure power from grid-connected power projects. These revisions apply to solar, wind, wind-solar hybrid, and firm and dispatchable power from renewable energy projects with energy storage systems.</p>
<p><strong>PSA Approval Timeline</strong></p>
<p>According to the proposed amendments, all projects will have a fixed timeline for regulatory approvals.</p>
<p>The amendments would require that when power procurement involves an intermediary agency and the end buyer is a distribution licensee, the latter must obtain regulatory approval for the power sale agreement (PSA) within 30 days of signing it. Such requirements apply to cases where prior approval was not obtained.</p>
<p>These provisions aim to avoid prolonged delays in obtaining regulatory clearance for PSAs. They apply uniformly to all types of renewable projects, including solar, wind, hybrid, and energy storage-linked generation.</p>
<p><strong>SCSD Extensions</strong></p>
<p>In cases where the appropriate regulatory commission fails to approve either the tariff or the PSA within 60 days of submission or 120 days from the date of the PSA, the project developer would be granted an extension for the scheduled commissioning and supply date (SCSD).</p>
<p>The extension would be based on the number of days there is a delay in tariff adoption or PSA approval, whichever is longer. It aims to ensure that developers are not penalized for regulatory inaction.</p>
<p>The government has also clarified that if delays occur in both tariff adoption and PSA approval, the longer of the two delays will be considered when granting the SCSD extension.</p>
<p><strong>PBG Slashed to 3%</strong></p>
<p>The proposed amendments aim to reduce the performance bank guarantee (PBG) requirement to 3% of the estimated cost for the relevant financial year, down from the earlier 5% of the estimated project or capital cost.</p>
<p>The PBG amount will be specified in the bid documents and must be submitted at the time of signing the power purchase agreement. In the case of wind projects, the amount must also conform to the limits specified by the Ministry of Finance.</p>
<p>In February this year, the Ministry <a href="https://www.mercomindia.com/power-ministry-amends-bidding-guidelines-renewable-energy-projects" target="_blank" rel="noopener">introduced</a> several amendments to the competitive bidding guidelines, including compensation mechanisms for failure to meet the minimum capacity utilization factor and location-specific bid requirements.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


MoP Proposes Amendments to Renewable Energy Bidding Guidelines


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					</table><p>Battery-backed solar energy systems need just 17 kWh of storage to flatten a 5 kW solar generation profile into a steady 1 kWh of output across 24 hours, according to a new report by <a href="https://ember-energy.org/" target="_blank" rel="noopener">Ember</a>.</p>
<p>For example, in a sunny city like Las Vegas, which has a solar capacity factor of around 20%, a 5 kW system generates an average of 1 kWh per hour or 24 kWh per day.</p>
<p>However, the city requires storage to redistribute excess generation since most of this energy is produced during daylight hours.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81236 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png" alt="Battery Storage " width="602" height="437" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1-300x218.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-1-600x436.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a></p>
<p>Of the total 24 kWh generated daily, approximately 9.6 kWh can be consumed directly during sunlit hours. The remaining 15 kWh must be stored for non-sunlight periods. Typically, a 90% usable capacity is required to ensure safe operation between 5% and 95% charge levels, and a 17 kWh battery is needed to reliably store the 15 kWh. This configuration enables approximately 14.4 kWh to be discharged later.</p>
<p>While achieving 24-hour solar power is straightforward in sunny locations, delivering this consistently across all 365 days remains a challenge due to seasonal and weather-related variability.</p>
<p>However, the Ember report said that modeling using hourly solar irradiance data from 12 cities worldwide shows that optimized solar and storage ratios make achieving approximately 97% of full-year 24-hour coverage possible. In high-insolation regions, this can be achieved at a competitive levelized cost of $104/MWh.</p>
<p><strong>Impact of Solar Tracking </strong></p>
<p>Battery requirements vary across days and regions, but the variation is not large in sunny locations. In Las Vegas, the daily battery requirement fluctuates between 15.8 kWh and 18.2 kWh throughout the year. Analysis shows that a 17 kWh battery remains close to optimal for most sunny areas.</p>
<p>The requirement for battery storage remains largely unchanged, even if solar panels use tracking systems rather than fixed mounts. Although tracking can increase output during early morning and late afternoon, any power above the 1 kW continuous demand would be used to charge the battery rather than being utilized.</p>
<p><strong>Significant Savings </strong></p>
<p>Solar energy paired with batteries can reduce the need for expensive grid expansion. In sunny regions, a single solar panel has an annual capacity factor of 20%. A fixed grid connection that would otherwise support only a limited solar installation can now support up to five times the solar capacity with the addition of batteries.</p>
<p>In 2024, over 3,000 GW of renewable projects worldwide were stuck in interconnection queues, compared to 585 GW of total new installations during the year. The report opines that batteries offer a practical and immediate solution for such situations.</p>
<p><strong>Cost Declines </strong></p>
<p>In 2024, battery prices dropped 40%, reaching a record low of $165/kWh for a fully integrated system (excluding engineering, construction, procurement, and grid connection costs). The downward trend continues into 2025, with auctions in Saudi Arabia achieving prices as low as $72/kWh.</p>
<p>This price drop is largely due to the widespread adoption of lithium-iron-phosphate (LFP) batteries, which comprised 80% of new grid-scale installations in 2023. LFP technology does not use nickel or cobalt, improves safety, and now comes with 20-year warranties from some manufacturers. These improvements significantly enhance the economics and reliability of battery investments.</p>
<p>Last December, BloombergNEF <a href="https://www.mercomindia.com/lithium-ion-battery-historic-low-price" target="_blank" rel="noopener">reported</a> that lithium-ion battery pack prices dropped 20% from 2023 to a record low of $115/kWh, the most significant annual decline since 2017.</p>
<p>Battery enclosures have also witnessed technical improvements, enabling denser cell packing, improved insulation, and reduced maintenance, particularly in hot and arid regions. Simpler integration further reduces system installation costs.</p>
<p>The development of sodium-ion batteries could potentially eliminate the need for lithium entirely and further reduce costs. The first grid-scale sodium-ion system is already operational.</p>
<p>Despite these advances, battery deployment remains in its early stages of development. In 2024, only 169 GWh of grid-scale battery capacity was installed globally, despite 1,450 GWh of battery manufacturing capacity already being in place. This includes electric vehicle batteries and is more than enough to support the 585 GW of solar capacity added in 2024 at a ratio of over 2 kWh of battery per 1 kW of solar panel.</p>
<p>Global energy storage capacity additions are <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes" target="_blank" rel="noopener">expected</a> to grow by 35% in 2025 to 94 GW or 247 GWh, according to BloombergNEF’s latest outlook.</p>
<p><strong>Shortfall Variation</strong></p>
<p>A standard configuration of 6 GW of solar energy paired with 17 GWh of battery storage was tested across 12 cities worldwide to assess how close each location could get to delivering firm, round-the-clock solar electricity year-round. The analysis revealed that the sunniest cities can achieve over 90% of full 24/365 reliability, but seasonal and climatic variations still impact output, especially during extended periods of cloudy weather.</p>
<p>Even in high-irradiance cities like Las Vegas, which achieves 97% reliability, shortfalls occur in winter, when daylight drops to just over nine hours on the shortest day, nearly three hours below the average.</p>
<p>Across the hemisphere, in Hyderabad, India, another city with high irradiance, monsoon clouds rather than winter, caused dips in solar generation.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81237 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png" alt="Battery Storage" width="602" height="491" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2-300x245.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Battery-Storage-image-2-600x489.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a></p>
<p>In Spain, Madrid experienced its worst gaps during November and December due to low sun angles and frequent overcast skies. Birmingham in the UK saw limited sunlight even in summer, managing just two months of consistent solar generation.</p>
<p>In China, Wuhan suffered from dense cloud cover throughout the year.</p>
<p>Muscat in Oman performed best overall, reaching 99% of the way to 24/365 solar generation. Other top performers included Mexico City, Mexico (96%); Johannesburg, South Africa (95%); Manila, Philippines; and Abuja, Nigeria (both 92%).</p>
<p>Four other cities surpassed the 80% mark: Hyderabad (89%), Madrid (88%), Buenos Aires, Argentina, and Washington, D.C. (both 81%). Only Wuhan (74%) and Birmingham (62%) fell short due to persistent cloudiness and lack of sunlight during the winter months.</p>
<p><strong>Commercial and Industrial Consumers</strong></p>
<p>Commercial and industrial users are also turning to behind-the-meter microgrids to reduce reliance on the grid and shield themselves from price volatility and outages.</p>
<p>Notable examples include the 100 MW Moro Hub data center in the United Arab Emirates, powered entirely by a co-located solar project. In West Virginia, U.S., a 106 MW solar microgrid with 261 MWh of storage can power titanium melting operations. Saudi Arabia’s tourism development now operates 16 resorts using a 400 MW solar project with 1.3 GWh of battery storage.</p>
<p><strong>Regulatory and Financial Barriers </strong></p>
<p>The Ember report identified entrenched regulatory and financial mindsets as the primary obstacles to delivering 24-hour solar power. While the systems are now mature, cost-effective, and capable of providing round-the-clock clean energy, power planners, regulators, and financiers remain either unaware of the potential or skeptical of its reliability.</p>
<p>Properly designed solar battery systems can meet or exceed these reliability standards, especially when supplemented by modest oversizing, grid electricity, or rarely-used backup generators. Unlike fossil fuels, solar systems benefit from increasingly accurate weather forecasting and lower maintenance requirements.</p>
<p><strong>Reduction in Grid Costs</strong></p>
<p>The report stated that integrating 24-hour solar with battery storage offers a strategic advantage at the national level by reducing the need for costly grid expansion. While not a standalone solution, solar-plus-storage plays a vital role in balancing the grid alongside other resources such as wind, hydro, geothermal, interconnectors, and flexible demand systems.</p>


24-Hour Uninterrupted Solar Power with Battery Storage is Real: Ember


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					</table><p>The U.S. energy storage market added more than 2 GW across all segments in the first quarter (Q1) of 2025, marking the highest Q1 on record, according to the latest U.S. Energy Storage Monitor report from the <a href="https://cleanpower.org/" target="_blank" rel="noopener">American Clean Power Association</a> and <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81231 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png" alt="Woodmac 1" width="632" height="527" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1.png 632w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-300x250.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-624x520.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-1-1-600x500.png 600w" sizes="(max-width: 632px) 100vw, 632px" /></a></p>
<p>The utility-scale energy storage market added 1,558 MW of capacity in Q1 2025, a 57% year-over-year (YoY) increase. Deployments rose 33% to 4,078 MWh from 3,056 MWh in the same period of the previous year.</p>
<p>California led with 457 MW of installed capacity, followed by Indiana with 256 MW. Arizona and Texas added 255 MW each, and Nevada 200 MW. Texas led this quarter in terms of project count with eight projects installed, followed by California, where the biggest project, with 240 MW of capacity, was brought online.</p>
<p>Residential energy storage posted the highest relative growth across all segments. Installed power capacity <a href="https://www.mercomindia.com/us-energy-storage-market-deployed-in-q1-2024-up-89-yoy" target="_blank" rel="noopener">rose</a> 82% to 458 MWh in Q1 2025 from 252 MWh in Q1 2024. Energy capacity grew to 893 MWh from 516 MWh, a 73% YoY increase. The residential segment continued to grow with expansion in the California and Puerto Rico markets. These two markets contributed 74% to the overall growth.</p>
<p>Illinois emerged as a new market with net billing, although attachment rates have not yet reached the anticipated levels. Like with other segments, there are continued efforts across the country to take advantage of existing tax credits this year while they remain available.</p>
<p>The commercial, community, and industrial (CCI) segment also recorded gains. Power capacity additions increased to 26 MW in Q1 2025, up from 19 MW in Q1 2024, representing a 33% jump. Energy capacity additions increased by 6%, rising to 63 MWh from 59 MWh over the same period.</p>
<p>The California CCI sector is struggling as the state faces challenges from the slow adoption of NEM 3.0 projects. Additionally, the limited number of new community storage projects this quarter hindered growth in the segment.</p>
<p>A key growth driver in this quarter was the decline in system costs. The average price of utility-scale battery systems fell to $874/kW in Q1 2025, down from $1,165/kW in Q1 2024. This represents a 25% reduction, which has helped improve the economics of storage projects and broadened deployment across market segments.</p>
<p>The pipeline for future utility-scale projects also expanded. By the end of Q1 2025, the total utility-scale segment pipeline stood at 603 GW. This pipeline includes 127 GW of projects in Wood Mackenzie&#8217;s database and 476 GW in interconnection queues. The total represents a 12% increase from Q1 2024, which had a pipeline of 538 GW.</p>
<p><strong>Outlook</strong></p>
<p>Across all segments, 15.2 GW/48.7 GWh of capacity will be added in 2025. In the near term, all segments of the energy storage market are expected to face policy-related challenges. Despite this issue, cumulative installations are projected to reach 79.8 GW and 289.4 GWh.</p>
<p>This year is on track to set new records for utility-scale storage, with a 22% YoY anticipated growth rate. However, political uncertainty is likely to dampen progress in 2026, with the utility-scale segment expected to decline by 29% compared to 2025.</p>
<p>Throughout Q1 and Q2, fluctuating tariff rates have restricted battery procurement from China. Unless there are changes to the Investment Tax Credit (ITC) or Section 45X, the market is forecast to rebound in 2028 and 2029.</p>
<p>Over the next five years, cumulative installations are expected to match earlier projections despite short-term volatility. Long-term demand is driven by strong interest in renewables from hyperscalers, capacity constraints in independent system operators, and state-level targets.</p>
<p>The residential storage market is set to expand by 45% in 2025. This growth will be supported by stabilized tariffs, continued price declines, and program expansions. The net billing transition in select regions will also contribute to higher adoption rates.</p>
<p>Growth in the CCI segment remains limited. Lower-than-expected uptake in California, along with ongoing uncertainty surrounding tariffs and policy measures, has slowed momentum. The segment continues to face difficulties due to the complexity of applications and weak project economics. Any further reduction in tax credit availability could place additional pressure on its growth trajectory.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81232 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png" alt="Woodmac 2" width="648" height="511" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png 648w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-300x237.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-624x492.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-600x473.png 600w" sizes="(max-width: 648px) 100vw, 648px" /></a></p>
<p><strong>House Reconciliation Bill Impact</strong></p>
<p>Provisions in the House reconciliation bill are expected to <a href="https://www.mercomindia.com/us-senate-budget-bill-proposes-to-slash-solar-wind-incentives-from-2026" target="_blank" rel="noopener">impact</a> the energy storage sector. The projected range of possible outcomes over the next five years spans a 29.5 GW difference between the high and low scenarios.</p>
<p>In the high case, an additional 8 GW of storage capacity would be deployed over the next five years. This outlook assumes that federal clean energy tax credits remain in place, no new tariffs are introduced under the Trump administration, and that renewables paired with storage are actively used to meet growing electricity demand. The high case also assumes improvements in financing conditions and fewer interconnection delays.</p>
<p>The low-case forecast predicts a 27% decline in total installations from 2025 through 2029. This scenario assumes that the reconciliation bill passes in its final form in the House of Representatives. Under these conditions, projects would be required to begin construction within sixty days of the bill&#8217;s passage and be operational by the end of 2028.</p>
<p>The sudden end of the ITC would lead to widespread cancellations as developers struggle to qualify and financial institutions grow increasingly risk-averse. The low case also expects continued trade friction between the U.S. and China, with tariffs remaining volatile through 2026. These conditions would likely drive up system prices and create further procurement delays. For the residential sector, the assumption is that the tax credit under Section 25D would expire after 2025, including for leased systems.</p>


US Energy Storage Hits New Q1 Record with Over 2 GW Installed


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					</table><p>The New Jersey Board of Public Utilities (<a href="https://www.nj.gov/bpu/" target="_blank" rel="noopener">NJBPU</a>) has approved Phase 1 of the Garden State Energy Storage Program (GSESP) with a target of 1,000 MW of energy storage systems (ESS).</p>
<p>Under Tranche 1 of Phase 1, the first solicitation aims to award 350-750 MW. The pre-qualification process, which started on June 25, 2025, has a final bid submission deadline of August 20, 2025.</p>
<p>The NJBPU expects to issue awards for Tranche 1 by October 31, 2025.</p>
<p>GSESP is a multi-phase program designed to deploy 2 GW of energy storage by 2030, a mandate established by the Clean Energy Act of 2018.</p>
<p>By bringing more energy storage online, GSESP will help increase the overall power supply that can be dispatched when needed. This increased supply is expected to mitigate wholesale electricity costs, which are a significant component of electric bills.</p>
<p>The execution of energy storage projects under the GSESP will also reduce long-term electricity costs through improved system efficiency.</p>
<p>Phase 1 of the program will be funded primarily through the New Jersey Clean Energy Program budget.</p>
<p>NJBPU also plans to use existing funds for Phase 1 without increasing rates for consumers. The utilization of existing funds could ensure no new or increased charges are added to ratepayers’ current electric bills.</p>
<p>Tranche 2 will issue a tender to allocate the remaining capacity to reach the target capacity of 1,000 MW.</p>
<p>Under Phase 2, the program will shift its focus to distributed energy storage, beginning in 2026. It will offer incentives for smaller grid-connected systems, including both front-of-the-meter and behind-the-meter projects. These incentives will include a combination of fixed payments and performance-based rewards.</p>
<p>NJBPU might introduce a performance-based incentive for transmission-scale systems under Phase 3, which is still under evaluation.</p>
<p>This program directly addresses demand growth and limited supply — the root causes of recent rate increases — while simultaneously building a major part of the state’s clean energy future.</p>
<p>According to BloombergNEF’s latest outlook, released recently, global energy storage capacity additions are <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes" target="_blank" rel="noopener">expected</a> to grow by 35% in 2025 to 94 GW or 247 GWh. BNEF forecasts a compound annual growth rate of 14.7% between 2025 and 2035, with yearly additions reaching 220 GW or 972 GWh by 2035.</p>
<p>According to the latest U.S. Energy Storage Monitor report from the American Clean Power Association and Wood Mackenzie, <a href="https://mercomindia.com/us-energy-storage-market-hit-new-record-with-12-3-gw-installations" target="_blank" rel="noopener">released</a> in March 2025, the U.S. energy storage market hit a new record with 12.3 GW installations across all segments in 2024.</p>


New Jersey Approves Program to Install 750 MW of Energy Storage


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					</table><p><a href="https://www.acmesolar.in/" target="_blank" rel="noopener">ACME Solar</a> and <a href="http://patelinfra.com/" target="_blank" rel="noopener">Patel Infrastructure</a> have won <a href="https://www.nhpcindia.com/" target="_blank" rel="noopener">NHPC</a>’s auction to set up 500 MW/1,000 MWh intrastate transmission system-connected standalone battery energy storage systems (BESS) in Andhra Pradesh (Tranche II).</p>
<p>ACME Solar won 225 MW/ 450 MWh at a tariff of ₹222,000 (~$2,580.20) MW/month for the Ghani substation and 50 MW/100 MWh at ₹210,000 (~$2,440.73)/MW/month for the Kuppam substation.</p>
<p>Patel Infrastructure won 225 MW/450 MWh at a tariff of ₹208,000 (~$2,417.48)/MW/month for the Jammalamadugu substation.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81177 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result.png" alt="NHPC 1,000 MWh Standalone Battery Energy Storage Systems Tranche-II Auction Result" width="915" height="277" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result.png 915w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result-300x91.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result-768x232.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result-650x197.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result-624x189.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/NHPC-1000-MWh-Standalone-Battery-Energy-Storage-Systems-Tranche-II-Auction-Result-600x182.png 600w" sizes="(max-width: 915px) 100vw, 915px" /></a></p>
<p>The tender was <a href="https://www.mercomindia.com/nhpc-1-gwh-bess-andhra-pradesh/" target="_blank" rel="noopener">issued</a> in February this year.</p>
<p>Developers will be eligible for viability gap (VGF) funding of ₹2.7 million (~$32,114)/MWh or 30% of the project’s capital cost, whichever is lower.</p>
<p>They must also ensure the BESS is available for two operational cycles daily, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC roundtrip efficiency of 85% monthly.</p>
<p>Developers must employ commercially established and operational technologies that are compliant with the guidelines specified in codes and standards to minimize technology risks.</p>
<p>They must commission the projects within 18 months of signing the battery energy storage purchase agreement.</p>
<p>The Ministry of Power recently <a href="https://www.mercomindia.com/government-54-billion-vgf-battery-storage" target="_blank" rel="noopener">announced</a> the second tranche of VGF to support BESS development. Under this tranche, a VGF of ₹1.8 million (~$21,043)/MWh will be provided to support the development of 30 GWh of BESS capacity.</p>
<p>Of the proposed 30 GWh, 25 GWh of storage capacity has been allocated across 15 states, while NTPC will develop the remaining 5 GWh.</p>
<p>The Central Electricity Authority estimates the need to deploy 37 GWh BESS capacity by 2027. This requirement is expected to increase to 236 GWh by 2031-2032. A BESS capacity of 13.2 GWh has been approved under the ongoing VGF program for BESS development.</p>
<p>In March 2025, the Ministry <a href="https://www.mercomindia.com/government-enhances-bess-capacity-target/" target="_blank" rel="noopener">directed</a> all states and implementing agencies to award all BESS contracts by June 2025, enabling the VGF program to be completed by May 2027.</p>


ACME, Patel Infrastructure Win NHPC’s 1 GWh Battery Energy Storage Auction


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					</table><p>The Bihar Electricity Regulatory Commission (<a href="https://berc.co.in/" target="_blank" rel="noopener">BERC</a>) has approved tariffs ranging from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh for 238.15 MW of solar power from grid-connected projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.</p>
<p>The power acquisition for 25 years will help Bihar meet its Renewable Purchase Obligation (RPO).</p>
<p><strong>Background</strong></p>
<p>The petitioner, Bihar State Power Generation Company (<a href="https://bspgcl.co.in/" target="_blank" rel="noopener">BSPGCL</a>), had initiated a competitive bidding process to procure 393.81 MW of solar power under PM-KUSUM for the solarization of 3,681 agriculture and mixed feeders with agricultural load.</p>
<p>Following the conclusion of the bidding process, BSPGCL sought the Commission&#8217;s approval for both the discovered tariffs, ranging from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh, and the draft power purchase agreements (PPA) for 85 projects with a cumulative capacity of 238.15 MW.</p>
<p>BSPGCL asserted that the competitive bidding process was executed transparently, ensuring the discovered tariff was highly competitive and accurately reflected the prevailing market conditions.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission examined the bidding process and found it to be transparent and compliant with the provisions laid down in the Electricity Act, 2003.</p>
<p>It observed that the discovered tariff was reasonable when compared to current market rates and that procuring power through this mechanism would help meet Bihar’s RPO commitments.</p>
<p>The Commission noted that the draft PPA included standard commercial and technical clauses and would provide the state with long-term renewable power availability. It emphasized that solar power will be procured entirely to meet RPO targets.</p>
<p>The state regulator approved the discovered tariffs for 85 out of the 116 power substations (PSS) for which multiple bids were received, aggregating to 238.15 MW. The tariffs quoted by L1 bidders ranged from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh.</p>
<p>BERC observed that bids for the 85 PSSs fell within the earlier approved maximum rate of ₹3.48 (~$0.040)/kWh, which had been established for Bihar due to unique challenges including low solar irradiation, high land acquisition costs, and smaller average project sizes.</p>
<p>Recently, BERC <a href="https://www.mercomindia.com/bihar-regulator-approves-tariffs-for-312-mw-wind-power-projects" target="_blank" rel="noopener">approved</a> the tariffs for 312 MW of wind power projects and the draft power sale agreements to be signed between Bihar State Power Holding Company and SJVN, the intermediary procurer.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to stay informed of the critical updates from the renewable industry.</p>


Bihar Commission Approves Tariffs for 238 MW Solar Projects Under KUSUM


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					</table><p>With rising electricity costs and an increased push for decarbonization, banks across India are strengthening their green lending portfolios to support the installation of captive and rooftop solar systems.</p>
<p>At the recent Mercom India <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-coimbatore" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> in Coimbatore, leading bankers outlined how they are adapting loan products, processes, and terms to meet the evolving energy needs of micro, small, and medium enterprises (MSMEs).</p>
<p>Representatives from the Small Industries Development Bank of India (<a href="https://www.sidbi.in/en/" target="_blank" rel="noopener">SIDBI</a>), State Bank of India (<a href="https://www.onlinesbi.sbi/" target="_blank" rel="noopener">SBI</a>), <a href="https://www.idbibank.in/" target="_blank" rel="noopener">IDBI Bank</a>, and <a href="https://bankofmaharashtra.in/" target="_blank" rel="noopener">Bank of Maharashtra</a> shared details about their green financing strategies.</p>
<p><strong>Financing Options </strong></p>
<p>R. Paramasivam, Assistant General Manager, SIDBI, stated that his organization offers term loans covering up to 80% of the project cost for ground-mounted and rooftop solar installations. Collateral is not required for rooftop solar systems; instead, the margin necessary is converted into a fixed deposit and held as security.</p>
<p>SIDBI also supports greenfield projects and third-party power purchase agreements (PPAs), including those from developers with no prior experience in the sector.</p>
<p>“We even finance projects above ₹100 million (~$1.15 million), subject to a detailed techno-economic viability study,” Paramasivam added. Applications and documentation can be filed online, with a processing time of around 15 days.</p>
<p>Sankara Subramanian V, AGM, SBI, stated that the bank offers similar flexibility, especially for larger group captive solar projects. “For rooftop solar, the margin requirement is as low as 20% (financing), and we go up to ₹1.5 billion (~$17.29 million) for spinning mills. Our interest rates range from 8.6% to 9.7% based on internal and external credit ratings. We do not require collateral for solar systems.”</p>
<p>Subramanian stated that group captive solar projects with a value below ₹500 million (~$5.76 million) require a 28% margin, while those exceeding this amount require a 30% margin. The borrowers must have a rating of at least BBB, meaning they have positive ongoing viability prospects. SBI employs a committee-based approach for approvals and requires a signed PPA and viability study before disbursing funds.</p>
<p>IDBI takes a more conservative stance. “We do not have standalone green energy products for commercial and industrial (C&amp;I) yet, but we fund captive solar projects by combining them with existing commercial or home loans,” said Purushotham A P, AGM, Assets, IDBI Bank. The bank calculates eligibility based on the borrower’s existing credit profile and offers interest rates ranging from 8.45% to 9.5%.</p>
<p>Bank of Maharashtra offers green energy finance to a diverse range of customer groups, including MSMEs, agricultural customers, and homeowners. “We finance rooftop solar systems under the PM Surya Ghar Yojana at rates starting from 7.35%,” said SN Balaji, AGM, Bank of Maharashtra. MSMEs can access loans from the bank with tenures ranging from seven to 15 years and interest rates varying from 8.5% to 11%, depending on the borrower’s profile.</p>
<p><strong>RBI’s Rate Cut Impact on Green Lending</strong></p>
<p>Speakers at the meeting agreed that the Reserve Bank of India’s (RBI) recent announcement of a repo rate cut and a reduction in the cash reserve ratio (CRR) has created a favorable lending environment.</p>
<p>Paramasivam emphasized that while the CRR cut does not directly impact SIDBI, the repo-linked rate reduction will bring interest rates even lower. “Our current rates start at 8.45%, and we expect this to reduce further.”</p>
<p>Subramaniam confirmed a similar case for SBI. “Our rates are reset on the 15<sup>th</sup> of every month, and a downward revision is expected.”</p>
<p>acknowledged that repo-linked lending rates are now leading to increased affordability. “Even though we do not yet have standalone green energy products, banks are now seeing increased interest from MSMEs and larger corporates,” he said.</p>
<p>Balaji observed that the timing of the RBI’s decision was strategically aligned with market needs. “This (decision) comes at the start of the festive and high-consumption seasons. Additional liquidity from the CRR cut will help banks be more aggressive in lending,” he said.</p>
<p>“A borrower who previously qualified for ₹3 million (~$34,581.93) might now get ₹3.3 million (~$38,040.12). This increased credit availability makes rooftop solar more viable for homeowners and small businesses,” added Balaji.</p>
<p><strong>Repayment Terms and Pre-Closure Penalties</strong></p>
<p>SIDBI charges penalties only if a borrower closes the loan early due to refinancing with another lender. “If the customer faces genuine business stress, we waive repayment charges,” said Paramasivam.</p>
<p>SBI does not levy any repayment charges for MSME borrowers. Subramaniam stated, “For captive consumers, solar is now mandatory. You are behind schedule if you have not switched. Hedging 80% to 95% of your power through solar can protect you from inflation and future tariff hikes.”</p>
<p>Purushotham stated that MSMEs are typically exempt from pre-closure penalties, particularly for term loans and working capital.</p>
<p>Balaji noted that while corporate borrowers may incur some prepayment charges due to the capital costs involved, the broader benefits of switching to solar energy far outweigh the costs. “India is geographically well-positioned to benefit from solar energy. Its adoption is not just about economics but also about national energy security,” he concluded.</p>
<p><strong>Advice for C&amp;I Units </strong></p>
<p>All speakers encouraged C&amp;I consumers to switch to solar energy, particularly given the decreasing interest rates and streamlined banking processes.</p>
<p>Subramaniam stated, “If you have not moved to solar yet, you are already late. Equity is expensive, and the cost of not adopting solar is only going to rise. Banks like ours are ready to back you if your PPAs and cash flows are in place.”</p>
<p>Purushotham said that demand is rising, and banks are ready to meet it.</p>
<p>Balaji urged businesses to act quickly. “Solar is no longer optional; it is a strategic necessity. With lower borrowing costs, favorable policies, and rising electricity rates, now is the time.”</p>
<p>The speakers emphasized that, with digital lending platforms, interest rates trending downward, and dedicated green energy funding options becoming more mainstream, the transition to solar has never been more accessible.</p>
<p>Mercom India will host its next ‘<a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad" target="_blank" rel="noopener">C&amp;I Clean Energy Meet’</a> in Hyderabad on August 22, 2025.</p>
<p>Mercom India will also be <a title="https://www.mercomindia.com/event/renewables-summit-2025" href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noreferrer noopener">hosting</a> the fifth edition of its Renewables Summit 2025 on July 24-25, 2025, at the Hyatt Residency, New Delhi. This event brings together all the stakeholders who are shaping India’s renewable energy industry.</p>
<p>You can register for the Summit <a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">here</a>.</p>


Banks Ready and Willing to Finance Solar for MSME Energy Transition


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					</table><p>The recent proposal from the <a href="https://www.erckerala.org/" target="_blank" rel="noopener">Kerala State Electricity Regulatory Commission</a> to limit net metering for rooftop solar systems up to 3 kW is likely to slow down the rooftop solar installations in the state.</p>
<p>According to the draft regulations, net metering will only be permitted for rooftop solar systems with a capacity between 3 kW and 5 kW, provided they include energy storage systems (ESS) that account for up to 30% of the rooftop solar capacity.</p>
<p>The Commission proposed limits on net metering and a mandate for ESS for rooftop solar projects in its draft order titled ‘Renewable Energy and Related Matters Regulations, 2025.’</p>
<p>The state aims to meet 50% of its power consumption through renewable energy by 2030 and 100% by 2040. However, these policy changes can potentially hinder its goals.</p>
<p>Rooftop solar installers in Kerala feel that the proposal could threaten the state’s momentum in rooftop solar installations.</p>
<p>Kerala has positioned itself as a frontrunner in residential rooftop solar adoption, driven largely by the momentum generated through the PM Surya Ghar program. As of November 2024, the state <a href="https://www.mercomindia.com/kerala-rooftop-solar-growth" target="_blank" rel="noopener">recorded</a> a 60.13 % application-to-installation conversion rate, second only to Gujarat. This strong conversion rate reflects the active participation of distribution companies (DISCOMs) and empaneled vendors.</p>
<p>Mohamed Shaffeeq N, General Secretary, Kerala Renewable Energy Entrepreneurs and Promoters Association (KREEPA), told Mercom India that capping net metering at 3 kW and expanding it to 5 kW with ESS could exclude installations from many mid-sized residential, institutional, and micro, small, and medium enterprises (MSMEs).</p>
<p>He added that Kerala is on the verge of failing in one of its most successful public-participation solar adoption models.</p>
<p>“The state-sponsored Soura program, followed by installations through the national portal, had positioned Kerala on the path to energy self-sufficiency. But capping net metering at just 3 kW will shut out most middle-class households, who require slightly larger systems to offset their actual consumption,” said Shaffeeq.</p>
<p>He also stated that systems above the cap would have to adopt net billing, which would undervalue exported energy, making most rooftop solar projects financially unviable.</p>
<p>Shaffeeq expressed concerns that the new grid support charges and time-of-day penalization included in the draft will undermine the value proposition of solar energy and penalize existing prosumers.</p>
<p>These provisions will also reduce the financial viability of housing societies and apartment groups that depend on virtual net-metering models.</p>
<p>KREEPA also fears that an estimated 50,000 jobs and ₹6 billion (~$69.39 million) in annual GST revenue are at risk. The expected 1,000 MW yearly addition in the next five years could also drop.</p>
<p>Another rooftop solar installer concurred with Shaffeeq that the new draft from KSERC will negatively affect Kerala’s progress in solar installations.</p>
<p>He said the policy changes would benefit the DISCOMs but harm the consumers.</p>
<p>Explaining the rationale behind the net metering limitations, he added that DISCOMs claim to incur losses due to net metering and prosumers utilizing energy generated during peak hours, which impacts the tariff for non-solar users.</p>
<p>Rooftop solar installers argue that, even though the grid has not yet been upgraded, the current level of solar adoption in the state is not sufficient to cause grid instability. They feel that the net metering limitations will deal a significant blow to new solar prosumers, as only 1.25% of the state’s consumers are currently procuring solar power.</p>
<p>“Battery storage is the best solution to meet peak load, but it could be done on a large scale by DISCOM. Requiring consumers to install 3 kW rooftop solar with 30% battery storage will only result in lower interest in solar, as it will not be financially viable,” added the Kerala-based solar installer.</p>
<p>Another rooftop solar solutions provider stated that the proposed rules will impact domestic and small commercial users the most, as 3 kW rooftop solar systems are most popular with them. Switching to net billing or installing costly batteries will dissuade them from going solar, as the payback period for these systems will be extended by a couple of months or years.</p>
<p>But the policy shift will encourage customers with a single-phase supply, which requires larger rooftop solar systems, to upgrade to a three-phase supply.</p>
<p>“The transformer level hosting capacity will be capped at 90%, with a 30% per-phase cap. In areas with overloaded transformers, this will result in new applications being rejected or delayed. Single-phase inverters will be restricted to a maximum of 3 kW. Previously, for systems with a capacity of up to 5 kW, the installation of three-phase inverters was permitted. Now, customers with single-phase supply wanting larger rooftop solar systems must upgrade to a three-phase supply, increasing the cost significantly,” said the solar solutions provider.</p>
<p>Fearing a slowdown in rooftop solar growth in the state, KREEPA has urged the state to align KSERC’s regulations with its policy vision. The association also urged the state government to create a truly sustainable, equitable, and investible ecosystem for clean energy in Kerala.</p>


From Leader to Lagging? Kerala’s Net Metering Cap Proposal Threatens Growth


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					</table><p>The Ministry of New and Renewable Energy (<a href="https://www.mercomindia.com/mnre-issues-draft-guidelines-to-simplify-testing-of-solar-modules-by-labs" target="_blank" rel="noopener">MNRE</a>) has launched the Innovative Projects Startup Challenge with a total prize pool of ₹23 million (~$265,650) to encourage innovation in rooftop solar and distributed renewable energy technologies.</p>
<p>Applications for the challenge must be submitted by August 20, 2025. Results will be announced on September 10, 2025.</p>
<p>The initiative is supported by the National Institute of Solar Energy and coordinated in partnership with StartUp India and the Department for Promotion of Industry and Internal Trade.</p>
<p>The challenge aims to identify and support Indian startups and innovators developing scalable solutions in four focus areas: affordability, resilience, inclusivity, and environmental sustainability.</p>
<p>Under the affordability criterion, the challenge invites technologies and business models that can reduce the cost of rooftop solar systems for low and middle-income households using modular systems, innovative financing methods, and circular economy strategies.</p>
<p>The resilience criterion invites participants to present solutions that enhance grid stability, climate resilience, and cybersecurity in solar systems, especially in remote or vulnerable regions. The inclusivity theme seeks models that increase access to energy for underserved communities, utilizing tools such as community solar, virtual net metering, and inclusive financing.</p>
<p>The environmental sustainability criterion invites ideas promoting eco-friendly deployments, such as solar panel recycling, land-neutral solutions, and hybrid clean energy technologies.</p>
<p>The challenge is open to startups in various sectors, including green technology, the Internet of Things, artificial intelligence, blockchain, construction, energy hardware, fintech, and waste management.</p>
<p>The total prize pool comprises ₹10 million (~$115,500) for the first prize, ₹5 million (~$57,750) for the second prize, ₹3 million (~$34,650) for the third prize, and 10 consolation prizes of ₹500,000 (~$5,775) each.</p>
<p>The winners will also receive incubation support, pilot implementation opportunities, and mentorship from domain experts and investors.</p>
<p>In May this year, the MNRE, through the National Institute of Solar Energy, <a href="https://www.mercomindia.com/mnre-invites-proposals-for-rooftop-solar-innovation-under-pm-surya-ghar" target="_blank" rel="noopener">issued</a> a call for proposals for innovative project components under the PM Surya Ghar: Muft Bijli Yojana.</p>
<p>Last September, MNRE <a href="https://www.mercomindia.com/mnre-launches-to-fund-rooftop-solar-innovation" target="_blank" rel="noopener">introduced</a> a ₹5 billion (~$58 million) Innovative Projects Component as part of the PM Surya Ghar: Muft Bijli Yojana to showcase and demonstrate cutting-edge solar technologies and applications.</p>


MNRE Launches ₹23 Million Startup Challenge for Rooftop Solar Innovation


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					</table><p>The Bihar State Power Generation Company (<a href="https://bspgcl.co.in/" target="_blank" rel="noopener">BSPGCL</a>) has invited bids for the development of a 10 MW grid-connected floating solar project over the reservoir of Durgawati Dam, in the Kaimur/Rohtas district.</p>
<p>Bids must be submitted by July 2, 2025. Bids will be opened on the same day.</p>
<p>Bidders must furnish an earnest money deposit of ₹10 million (~$116,000), and a bid document fee of ₹25,000 (~$290) plus 18% GST.</p>
<p>The successful bidder must submit a performance bank guarantee of ₹2.5 million (~$29,000) per MW, totaling ₹25 million (~$290,000) for a 10 MW project, which must be provided and remain valid for a period of 18 months.</p>
<p>The scope of work encompasses the design, supply, erection, testing, and commissioning of the floating solar project, as well as the construction of a dedicated high-tension line for grid connectivity.</p>
<p>The minimum capacity utilization factor mandated is 19%.</p>
<p>The project must be commissioned within 12 months from the power purchase agreement, with the operation and maintenance period extending for 25 years from the date of commissioning. Bidders must have experience in commissioning grid-connected solar power projects of a minimum cumulative installed capacity of 5 MW, including at least one project of 1 MW capacity.</p>
<p>Bidders must have a minimum average annual turnover of ₹300 million (~$3.48 million) over the past three financial years.</p>
<p>The solar models used in the project must be compliant with the Approved List of Models and Manufacturersissued by the Ministry of New and Renewable Energy. Only commercially established technologies are allowed to be used in the project.</p>
<p>Penalties include daily proportional encashment of PBG for delays in commissioning of up to six months, and termination of PPA for delays exceeding that period. In case of a shortfall in generation, compensation will be levied at 1.5 times the PPA tariff.</p>
<p>Recently, BSPGCL <a href="https://www.mercomindia.com/bihar-epc-116-mw-solar-241-mwh-bess" target="_blank" rel="noopener">invited</a> bids for the engineering, procurement, and construction of a 116 MW solar project and a 241 MWh battery energy storage system in the Lakhisarai district.</p>
<p>Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


Bihar Issues Tender for 10 MW Floating Solar Project at Durgawati Dam


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					</table><p>NLC India Renewables (<a href="https://www.nlcindia.in/website/en/corebusiness/renewableprojects.html" target="_blank" rel="noopener">NLC India</a>), <a href="https://bondada.net/" target="_blank" rel="noopener">Bondada Engineering</a>, and <a href="https://orianapower.com/" target="_blank" rel="noopener">Oriana Power</a> have won Tamil Nadu Green Energy Corporation’s (<a href="https://www.tngecl.org/en/greenenergy/" target="_blank" rel="noopener">TNGECL</a>) auction to set up 500 MW/1,000 MWh standalone battery energy storage system (BESS) projects in six locations in Tamil Nadu on a build-own-operate basis.</p>
<p>NLC India Renewables won 250 MW/500 MWh at a tariff of ₹248,000 (~$2,880.04)/MW/month, Bondada Engineering won 200 MW/400 MWh at a tariff of ₹246,000 (~$2,856.81)/MW/month, and Oriana Power won 50 MW/100 MWh at a tariff of ₹246,000 (~$2,856.81)/MW/month.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81093 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942.png" alt="" width="711" height="282" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942.png 711w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942-300x119.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942-650x258.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942-624x247.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/tngcel-e1750750453942-600x238.png 600w" sizes="(max-width: 711px) 100vw, 711px" /></a>NLC India will set up a BESS project each at the Ottapidaram, Anuppankulam, and Kayathar substations. Bondada Engineering will set up one BESS project each at Vellalaviduthi and Thennampatty substations. Oriana Power will set up a BESS project at the Karaikudi substation.</p>
<p>The tender was <a href="https://www.mercomindia.com/tamil-nadu-floats-tender-for-500-mw-1000-mwh-standalone-bess-projects" target="_blank" rel="noopener">floated</a> in March 2025.</p>
<p>The projects must be completed within 18 months.</p>
<p>The projects will enable the Tamil Nadu Generation and Distribution Corporation to charge and discharge the storage systems on demand. The BESS must also enable charging and discharging in groups of 50 MW/100 MWh and 100 MW/200 MWh.</p>
<p>The projects must be designed for interconnection with the state transmission utility network. They must also enable charging and discharging with a C-rate (charging/discharging rate) of 0.5.</p>
<p>The three auction winners must ensure that the BESS is available for two full operation cycles daily and guarantee a minimum annual system availability of 95%. They must also ensure that 100% of the BESS’ minimum dispatchable capacity is met.</p>
<p>The projects must guarantee a minimum AC-to-AC round-trip efficiency of 85% every month.</p>
<p>The BESS requirement is technology agnostic. However, only commercially established and operational technologies must be used to minimize the technology risk and achieve timely project commissioning.</p>
<p>The projects will be charged by drawing power from the Tamil Nadu Generation and Distribution Corporation (TNPDCL) and injecting it into its network per the instructions issued by the state load dispatch centers.</p>
<p>TNPDCL will provide the required power for charging the BESS under the minimum system efficiency agreement.</p>
<p>The Tamil Nadu Transmission Corporation will provide land to the selected bidders for an annual lease rate of ₹1 (~$0.011)/project/year.</p>
<p>Under the viability gap funding (VGF) support from the Ministry of Power, the projects will receive VGF of 30% of the BESS’ capital cost or ₹2.7 million (~$31,101)/MWh, whichever is lower. This funding will be disbursed in five tranches.</p>
<p>To <a href="https://www.mercomindia.com/government-54-billion-vgf-battery-storage" target="_blank" rel="noopener">encourage</a> the development of more BESS projects, the Ministry of Power announced the second tranche of VGF in April 2025. Under this tranche, a VGF of ₹1.8 million (~$21,043)/MWh will be provided to support the development of 30 GWh of BESS capacity.</p>


NLC, Bondada, Oriana Win TNGECL’s 500 MW/1,000 MWh BESS Auction


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					</table><p>REC Power Development and Consultancy (<a href="https://www.recpdcl.in/" target="_blank" rel="noopener">RECPDCL</a>) has invited bids for the implementation of a 765 kV interstate transmission system between Parli New, Maharashtra, and Bidar, Karnataka, on a build, own, operate, and transfer basis.</p>
<p>The tender is part of a broader transmission expansion plan aimed at enhancing grid connectivity between the country’s southern and western regions, as well as increasing renewable energy evacuation capacity.</p>
<p>The Parli New–Bidar double circuit transmission line will include the construction of two 765 kV line bays at each end and the Parli New and Bidar pooling stations (PS). The line will also include the installation of 765 kV, 240 MVAr static line reactors at Bidar PS, comprising six 80 MVAr switchable units.</p>
<p>The Bidar 765/400/220 kV PS is being developed to support 2.5 GW of renewable energy capacity, with connectivity of 2.5 GW already granted at the 220 kV level.</p>
<p>Bids must be submitted by August 22, 2025. Bids will be opened on the same day.</p>
<p>Bidders must furnish a bid security of ₹96 million (~$1.16 million) and a tender document fee of ₹500,000 (~$6,025).</p>
<p>The scope of work encompasses the survey, design, engineering, financing, land acquisition, right-of-way clearance, permits, construction, testing, and commissioning of the transmission system. It also entails providing operations and maintenance services for 35 years.</p>
<p>Successful bidders must transfer the transmission assets to the Central Transmission Utility at the end of the 35-year term at no costs.</p>
<p>Bidders must have worked on infrastructure projects worth at least ₹5 billion (~$60.24 million), with each project valued at a minimum of ₹1 billion (~$12.05 million). Alternatively, they must have worked on construction contracts where they received payments of at least ₹5 billion (~$60.24 million) over the last five years.</p>
<p>Bidders must have a minimum net worth of ₹2.5 billion (~$30.12 million).</p>
<p>Recently, RECPDCL <a href="https://www.mercomindia.com/recpdcl-invites-bids-to-evacuate-2-gw-of-power-from-solar-park-in-tumkur" target="_blank" rel="noopener">issued</a> a request for proposal for developing a 2,000 MW intrastate transmission system to evacuate power from a proposed solar park at Ryapte village in Tumkur district, Karnataka.</p>
<p>In May this year, RECPDCL <a href="https://www.mercomindia.com/recpdcl-invites-bids-to-set-up-transmission-system-for-renewable-energy-integration" target="_blank" rel="noopener">invited</a> bids to set up an interstate transmission system (ISTS) to integrate 3 GW of renewable energy at Ananthapuram-II Renewable Energy Zone (Phase-II) in Andhra Pradesh.</p>


RECPDCL Invites Bids to Enhance Western-Southern Grid Power Connectivity


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					</table><p>The global energy storage capacity additions are expected to grow by 35% in 2025 to 94 GW or 247 GWh, according to BloombergNEF’s (<a href="https://about.bnef.com/" target="_blank" rel="noopener">BNEF</a>) latest outlook. BNEF forecasts a compound annual growth rate of 14.7% between 2025 and 2035, with yearly additions reaching 220 GW or 972 GWh by 2035.</p>
<p>The growth will be driven by traditional markets and large-scale utility projects launched or under construction in countries such as Saudi Arabia, South Africa, Australia, the Netherlands, Chile, Canada, and the UK.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage.webp"><img loading="lazy" decoding="async" class="aligncenter wp-image-81069 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage.webp" alt="Bloomberg energy storage" width="1097" height="734" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage.webp 1097w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-300x201.webp 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-768x514.webp 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-650x435.webp 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-624x418.webp 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-600x401.webp 600w" sizes="(max-width: 1097px) 100vw, 1097px" /></a></p>
<p><strong>China’s Changing Policies</strong></p>
<p>Mainland China continues to account for the bulk of global energy storage demand. This growth is primarily supported by regulatory requirements that mandate storage with utility-scale solar and wind projects.</p>
<p>However, a new policy introduced in February 2025 requires 100% of solar and wind generation to be traded on the wholesale power market. This policy removes energy storage as a prerequisite for connecting renewable energy sources to the grid. Local governments have until the end of 2025 to define implementation specifics.</p>
<p>Despite the policy change, several Chinese provinces have continued to mandate battery pairing for new renewable projects. BNEF expects storage deployment in China to remain robust. However, the growth drivers will increasingly shift from mandates to economic viability, depending on local policy outcomes.</p>
<p><strong>US Market Weakens</strong></p>
<p>In the U.S., the energy storage outlook has weakened due to sharply increased tariffs on imports from China, Canada, and Mexico. President Donald Trump, who returned to the White House in 2025, raised import tariffs in April, with base tariffs on Chinese goods reaching up to 145%.</p>
<p>BNEF’s base-case scenario models a blanket 54% import tariff, which increased turnkey four-hour battery system costs in the U.S. this year by 30% to $266/kWh. Under the higher tariff scenario of 145%, annual buildout is expected to drop by 51% to 74% from 2025 to 2027 compared to the base case.</p>
<p>Rising costs have already led to project delays, cancellations, and renegotiation of supply contracts. This increase also affected the U.S. domestic battery industry, which still relies on imports of battery materials, such as graphite, from China.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2.webp"><img loading="lazy" decoding="async" class="aligncenter wp-image-81070 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2.webp" alt="Bloomberg Energy Storage" width="1089" height="918" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2.webp 1089w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2-300x253.webp 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2-768x647.webp 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2-650x548.webp 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2-624x526.webp 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-Storage-2-600x506.webp 600w" sizes="(max-width: 1089px) 100vw, 1089px" /></a></p>
<p><strong>Utility-Scale Dominance </strong></p>
<p>Globally, the energy storage market is increasingly led by the utility-scale segment, particularly in China, Saudi Arabia, South Africa, Australia, and Chile. Government mandates and auctions are driving gigawatt-level development in these countries.</p>
<p>Utility-scale installations are accelerating in Europe, the Middle East, and Africa and are expected to surpass the residential segment by 2026. This growth is driven by increased utility procurement and policy support.</p>
<p>The residential market showed mixed results, slowing down in Europe but growing in California following policy shifts in 2024. BNEF expects commercial deployments to surpass residential storage by 2030 as solar battery attachment rates rise.</p>
<p><strong>Technology Landscape</strong></p>
<p>Lithium iron phosphate (LFP) remains the dominant lithium-ion battery chemistry in the stationary energy storage market. According to BNEF, Chinese battery manufacturers specializing in LFP production are capitalizing on domestic market growth and aggressive international expansion.</p>
<p>Major battery producers, including Contemporary Amperex Technology, BYD, EVE Energy, CALB, and Hithium, are developing products specifically for the energy storage market. This development is leading to a continued divergence from the electric vehicle (EV) chemistry mix, which predominantly features nickel-based lithium-ion battery chemistries, such as nickel-manganese-cobalt oxide (NMC) and nickel-cobalt-aluminum oxide (NCA).</p>
<p>NMC and NCA offer higher energy density, benefiting EVs with lighter and longer-range capabilities. However, LFP’s cost-effectiveness and safety profile are more suited for stationary storage.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3.webp"><img loading="lazy" decoding="async" class="aligncenter wp-image-81071 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3.webp" alt="Bloomberg Energy storage" width="1093" height="872" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3.webp 1093w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3-300x239.webp 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3-768x613.webp 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3-650x519.webp 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3-624x498.webp 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Bloomberg-Energy-storage-3-600x479.webp 600w" sizes="(max-width: 1093px) 100vw, 1093px" /></a></p>
<p>In Japan and South Korea, where manufacturers historically focused on nickel-based chemistries, a portion of production is expected to meet domestic energy storage demand. This production is also projected to supply a diminishing overseas NMC demand through 2035.</p>
<p>The U.S. market may see NMC in utility-scale projects until at least 2027. Despite the clear shift towards LFP, 2024 still saw substantial shipments of NMC batteries for energy storage.</p>
<p>The high tariffs on Chinese imports, where the majority of LFP batteries are produced, are expected to reduce the overall U.S. energy storage demand. However, these tariffs may make NMC batteries from non-Chinese sources more competitive. Expectations for sodium-ion batteries have diminished as LFP prices continue to decline, leading to lower forecasts for sodium-ion technology adoption.</p>
<p>Corporate funding for energy storage companies, including venture capital, debt, and public market financing, <a href="https://www.mercomindia.com/energy-storage-funding-declines-sharply-in-q1-2025" target="_blank" rel="noopener">totaled</a> $2.2 billion across 31 deals in Q1 2025, according to Mercom Capital Group’s recently released Q1 2025 Funding and M&amp;A Report for Energy Storage.</p>


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