Both projects will be executed under the CAPEX Mode. Under this arrangement, SECI will undertake full investment responsibilities, including financing, development, and implementation. The decision to adopt this model aims to ensure structured deployment and long-term operational stability for both the storage system and the hybrid solar facility.
The Ministry of New and Renewable Energy stated: “The exchange of GOs marks a significant milestone in strengthening Andhra Pradesh’s renewable energy infrastructure.” The Ministry added: “These projects signal a major leap in clean energy storage capacity, strengthening the state’s renewable ecosystem and powering India’s transition to a more resilient, storage-enabled green grid.” The remarks highlight the government’s view that energy storage will play an increasingly important role in supporting grid reliability and integrating variable renewable sources.
The 1,200 MWh BESS in Nandyal is expected to support load management, improve grid flexibility, and enhance the efficient use of renewable power. By enabling storage of excess generation during peak production hours and supplying power when needed, the system aims to improve overall grid performance. The storage project is also intended to reduce curtailment of renewable energy, ensuring optimal use of available resources.
The 50 MW hybrid solar project will combine multiple technologies to provide more stable output compared with a standalone system. The hybrid configuration is expected to contribute to consistent energy supply and improve utilization of local renewable potential. Together with the BESS, the project is positioned to strengthen the state’s long-term energy planning and improve operational resilience.
Through these developments, SECI and Andhra Pradesh aim to expand clean energy infrastructure and establish advanced storage capabilities within the region. The introduction of large-scale storage is expected to support grid modernization and encourage future renewable initiatives. The coordinated approach also reflects the broader objective of increasing energy reliability and supporting sustainable development.
With the government orders now exchanged, SECI will move forward with detailed planning and implementation steps. Both projects represent progress toward expanding storage capacity and diversifying renewable generation, contributing to long-term energy stability in Andhra Pradesh.
