Mumbai, Sept. 17 -- The Delhi Electricity Regulatory Commission (DERC) has approved a tariff of Rs. 3.59 mn/MW/year for BSES Rajdhani Power's (BRPL) 12.5 MW/25 MWh Battery Energy Storage System (BESS) project at Shivalik Grid in Delhi. The project was awarded to REConnect Energy Solutions after a competitive tender issued by The Energy and Resources Institute (TERI).
BRPL had petitioned DERC to approve procurement of storage capacity on a monthly billing basis. The utility identified the 33/11 kV Shivalik Grid as a suitable location to improve flexibility in its distribution network, where annual peak demand has recorded a compound annual growth rate of 5.42 per cent over the past six years.
The proposed BESS is intended to defer capacity augmentation, reduce peak demand and support energy arbitrage. It will also provide ramping support, resource adequacy, grid support and backup supply for critical loads through islanding operations, while supporting the generation of carbon credits.
DERC classified BESS as an active and smart resource that can improve grid reliability and supply quality. During bid scrutiny, Loom Solar was rejected for failing to submit the mandatory earnest money deposit, while Enerzolve Smart Technologies was disqualified for non-compliances including the absence of required ISO certifications. Oriana Power, REConnect Energy Solutions and Ampere Hour Solar Technology were declared technically qualified.
Oriana Power initially emerged as the lowest bidder with a quoted tariff of Rs. 3.6 mn/MW/year. An e-reverse auction held on January 21, 2026 subsequently selected REConnect Energy Solutions at Rs. 3.59 mn/MW/year, excluding taxes and applicable GST. DERC said the tariff was about 37.6 per cent below the benchmark for BRPL's earlier Kilokari BESS project, which had a tariff of about Rs. 5.76 mn/MW/year. The lower fixed cost is expected to reduce the corresponding pass-through in Delhi's Aggregate Revenue Requirement.
Published by HT Digital Content Services with permission from Construction World.