Reliance NU Energies bags major battery storage project from SJVN

Why Reliance NU Energies’ ₹3.33/kWh SJVN Bid Signals a Major Shift in India’s Clean Power Game

Reliance NU Energies, a wholly owned subsidiary of Reliance Power Limited, has been awarded a 350 MW solar power project integrated with 700 MWh of battery storage by state-run SJVN Limited at a tariff of ₹3.33/kWh — one of India’s most competitive hybrid energy bids to date. The announcement, issued via an official exchange filing on May 28, 2025, reflects the growing strategic alignment between India’s public energy planners and private sector pioneers aiming to expand dispatchable renewable energy capacity.

The project will be connected to India’s inter-state transmission system (ISTS), ensuring its viability across geographies. It includes 600 MW of DC solar capacity and 175 MW/700 MWh of battery energy storage. Once commissioned, it will substantially expand Reliance Power’s green energy footprint and confirm its market-leading position in the integrated Solar + BESS segment.

How This Win Fits into the Broader Renewable Bidding Landscape

The project forms part of a mega 1,200 MW solar + 600 MW/2,400 MWh BESS tender floated by SJVN Limited, a Navratna public sector enterprise under the Ministry of Power. The tender was oversubscribed by over four times, drawing participation from 19 developers, with 18 qualifying for the final e-reverse auction. This robust response underscores the market’s shift toward storage-backed renewables as India moves from energy access goals to grid reliability and decarbonization.

Reliance NU Energies’ success in securing 350 MW makes it one of the largest winners in this tender, outpacing several established players. The fixed tariff of ₹3.33/kWh for a 25-year PPA reflects a bold but bankable play on falling battery costs, improved asset design, and a maturing financing environment for hybrid power.

What Drove Reliance Power Stock Lower Despite the Strategic Milestone?

Surprisingly, the stock of Reliance Power Limited closed lower at ₹50.45 on May 28, 2025, down 3.06% from the previous day’s ₹52.04. The day’s trading saw over 954 lakh shares change hands, translating to a turnover of ₹485.99 crore. The delivery percentage stood at 38.08%, indicating that a significant share of trades were from long-term institutional or HNI positions.

The decline appears to be driven more by short-term profit-taking than negative sentiment. The stock had recently touched a 52-week high of ₹55.10 on May 26. Even after the dip, it remains more than double its 52-week low of ₹23.30 seen in June 2024. The current P/E ratio of 7.09 suggests room for re-rating if new energy projects start contributing meaningfully to bottom-line earnings over the next 2–3 years.

Institutional investors have remained watchful. According to sentiment flows from brokerage models and industry forums, the announcement is seen as strategically sound but not immediately earnings accretive. Analysts are expected to re-evaluate their projections after PPA execution, financing details, and project commissioning timelines become clearer.

Why ₹3.33/kWh Is Considered a Benchmark Price in Solar + Storage Bidding

In India’s energy auction ecosystem, a tariff of ₹3.33/kWh for a project that includes large-scale battery storage is both aggressive and significant. Standalone solar projects often win bids below ₹2.50/kWh, but storage integration typically adds a material premium due to higher capex, maintenance costs, and system balancing needs.

Yet, declining lithium-ion battery prices and economies of scale are enabling hybrid projects to remain cost-competitive. Analysts suggest that Reliance NU Energies’ pricing reflects a long-term view of storage becoming mainstream in India’s power markets — particularly for meeting peak-hour demand, firming renewable supply, and reducing curtailment risk.

If successfully executed, this project could redefine investor and regulatory expectations for what constitutes a commercially viable hybrid power asset.

How Reliance Power’s Green Pivot Aligns with National Energy Strategy

This SJVN win is the clearest indication yet of Reliance Power’s transformation from a thermal-heavy operator to a clean energy major. Historically anchored by the 3,960 MW coal-fired Sasan Power Project, the company has been shifting gears via its new platform Reliance NU Energies.

As of May 2025, Reliance Power’s total clean energy pipeline stands at 2.4 GW of solar and 2.5+ GWh of storage — making it India’s largest player in the solar-plus-BESS space. This places the company in the top tier of India’s decarbonization story alongside other large IPPs like ReNew Power, Adani Green Energy, and Tata Power Renewable.

The strategy is also consistent with the broader Reliance Group’s ambition to lead the clean energy transition across verticals — from solar manufacturing and hydrogen to mobility and circular energy infrastructure.

What Analysts Expect Next for Reliance Power and the Sector

Now that the LOA has been awarded, the next steps for Reliance NU Energies will include PPA signing, land acquisition, regulatory clearances, and the start of EPC activities. Industry insiders expect commissioning within 18–24 months, barring any supply chain delays. Funding could be structured via a combination of internal accruals, climate-linked bonds, and concessional green finance — especially given the project’s alignment with SDG and ESG mandates.

The success of this project may also boost Reliance Power’s competitiveness in future tenders, particularly as central and state agencies gear up to float more hybrid and round-the-clock (RTC) tenders. Gujarat, Karnataka, and Maharashtra are all expected to issue multi-GW storage-linked tenders over the next 12–18 months.

Meanwhile, policy watchers expect the SJVN tender model — which combines firm dispatchability with competitive pricing — to become the preferred template for India’s clean grid expansion strategy.

Is Reliance Power Quietly Becoming a Clean Energy Giant?

This isn’t just a standalone contract win — it’s part of a deliberate and data-driven transition. For Reliance Power, success in this oversubscribed tender strengthens its new business model. It positions the company at the intersection of policy support, investor interest, and technological readiness in the next generation of India’s energy ecosystem.

While execution risks remain, and earnings visibility may be back-loaded, the company now holds the scale and credibility to shape India’s solar-storage roadmap. If Reliance NU Energies delivers on its project pipeline as promised, the market could soon start valuing Reliance Power not for what it was — but for what it’s becoming.