The utility-scale renewable energy bidding landscape in 2025 has evolved rapidly, marked by a slower start, followed by strong momentum driven primarily by Battery Energy Storage Systems (BESS) and innovative tender structures. The year reflects a transition phase for the sector, as policy signals, technology readiness, and DISCOM requirements begin to align.
The year 2025 began with lower-than-anticipated bidding activity across the market. One of the key reasons for this slowdown was the non-issuance of the annual bidding calendar by the Ministry of New and Renewable Energy (MNRE), which led to limited visibility and delayed participation from developers. As a result, Q1 witnessed muted tender activity and cautious market sentiment.
Bidding activity gained momentum in Q2, with the launch of multiple Solar + Energy Storage System (ESS) tenders and FDRE tenders. BESS emerged as the pivotal theme of 2025, around which most utility-scale tenders were structured. This shift was largely driven by the availability of Viability Gap Funding (VGF) schemes, which significantly improved the commercial attractiveness of storage-linked projects. A whooping ~75GWh ESS capacity tenders were issued.
Alongside central agencies, several state DISCOMs entered the storage space, issuing GWh-scale BESS tenders—an unprecedented quantum in the Indian power sector. The addition of BESS capacity helps reduce volatility in power purchase quantum and tariffs, offering DISCOMs greater predictability and flexibility. This benefit has translated into strong interest from state utilities in integrating storage into their long-term procurement strategies.
The surge in tender volumes and improved offtake certainty—owing to DISCOM-backed tenders—attracted a wide range of new participants. Several new developers entered the market, along with infrastructure and EPC companies, many of whom view BESS as a relatively “plug-and-play” solution compared to conventional generation assets. This influx significantly intensified competition.
Tariff discovery in standalone BESS tenders showed a wide variation across bids. Notably, record-low tariffs were discovered in a tender organized by the state of Rajasthan. However, these aggressive tariffs are yet to be tested under real-world operating conditions, and their long-term sustainability remains to be seen.
Despite the optimism, BESS projects are far from simple. Many bidders appear to be underestimating technical complexities and the lack of long-term operational data, as utility-scale BESS is still at a nascent stage in India. Diverse sourcing strategies—ranging from fully containerized imported solutions to locally assembled systems using sourced battery packs—introduce varying degrees of risk, potentially impacting reliability and performance over the project life cycle.
In parallel, some players have taken a more integrated approach, entering into backward integration by investing in BESS manufacturing, aiming to gain better cost control and supply-chain resilience.
Looking ahead, the market is expected to witness a greater number of non solar hour, connectivity based tenders in 2026. As grid requirements evolve and the focus shifts toward reliability and flexibility, such innovative tender structures are poised to shape the next phase of utility scale renewable procurement in India.
In line with this shift, SECI has released a notable tender — the 1000 MW Round the Clock (RTC) Thermal Mimic tender — which requires renewable energy projects to replicate the round the clock, steady generation profile typically delivered by thermal power plants
Overall, 2025 stands out as a year of transition—where storage moved from concept to core strategy, competition intensified, and the sector took meaningful steps toward a more stable and dispatchable renewable energy future.
