CERC Rejects Plea to Approve Tariff for 300 MW Wind-Solar Projects

MHI Announces Demand Incentives for Electric Trucks Under PM E-Drive

RECPDCL Signs Agreements for Installing 3.32 Million Smart Meters in Gujarat

Rajasthan Commission Approves Tariffs for 82 MW Solar Projects Under KUSUM

Karnataka Sets Benchmark Tariff of ₹3.07/kWh for MW-Scale Solar Projects

Daily News Wrap-Up: MNRE Clarifies ALMM Norms for Behind-the-Meter Projects

REMCL Floats Tender for 3 MW Solar Project in Noida

JK Tyre to Source 5 MW of Renewable Energy from STTY RE

MNRE Issues Clarifications on ALMM Mandate for Behind-the-Meter Projects

Himachal Electricity Regulator Finalizes Resource Adequacy Framework Regulations


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					</table><p>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en" target="_blank" rel="noopener">KERC</a>) has issued its generic tariff order for solar power projects. The order is applicable from July 1, 2025, to June 30, 2026. The tariffs apply to MW-scale ground-mounted, distributed solar photovoltaic (DSPV), and rooftop solar projects.</p>
<p><strong>Tariffs Approved for 2025-26</strong></p>
<p>The final approved tariff for MW-scale ground-mounted solar power projects is ₹3.07 (~$0.035)/kWh. For non-domestic DSPV consumers, the tariff is ₹3.08 (~$0.035)/kWh. For domestic consumers installing systems with a capacity of 1 kW to 10 kW, the tariff is ₹3.86 (~$0.044)/kWh, excluding subsidy.</p>
<p>Consumers eligible under the PM Surya Ghar: Muft Bijli Yojana will receive subsidized tariffs based on system size: ₹2.30 (~$0.026)/kWh for 1 kW to 2 kW systems, ₹2.48 (~$0.028)/kWh for systems between 2 kW to 3 kW, and ₹2.93 (~$0.034)/kWh for systems above 3 kW.</p>
<p>The benchmark capital cost for tariff determination is ₹40,000 (~$465.12)/kWh for domestic DSPV, ₹30,000 (~$348.84)/kWh for other DSPV projects, and ₹32.15 million (~$373,837)/MW for MW-scale projects.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81851 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png" alt="KERC Levelized Tariff" width="835" height="365" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png 835w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-300x131.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-768x336.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-650x284.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-624x273.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-600x262.png 600w" sizes="(max-width: 835px) 100vw, 835px" /></a></p>
<p>The Commission had <a href="https://www.mercomindia.com/kerc-proposes-tariff-of-%E2%82%B92-93-kwh-for-pm-surya-ghar-projects-above-3-kw" target="_blank" rel="noopener">proposed</a> the tariffs in March this year.</p>
<p><strong>Terminology Change </strong></p>
<p>The Commission has replaced the term &#8220;Solar Rooftop Photovoltaic&#8221; with &#8220;Distributed Solar Photovoltaic&#8221; (DSPV) projects. This category now includes rooftop systems, ground-mounted systems using elevated structures with a minimum ground clearance of eight feet, facade-mounted installations, and systems covered under virtual net metering (VNM) and group net metering (GNM).</p>
<p>These systems can be installed on residential, institutional, or commercial buildings, provided compliance with local building bylaws and safety regulations is ensured.</p>
<p><strong>Metering Mechanisms and Open Access Benefits</strong></p>
<p>Under the VNM model, consumers of the same category, such as those in residential apartments or government buildings, can use a single solar system to offset consumption across multiple electricity connections. The energy injected into the grid will be compensated for at 75% of the applicable generic tariff.</p>
<p>Smart meters will be mandatory at both the generation and consumption ends. Consumers will be exempt from open access charges if the consumption is confined within the same distribution transformer or 11 kV feeder.</p>
<p>In the GNM model, an individual with multiple connections under the same name can link them under a single solar installation. This facility will be subject to the condition that these individuals have a minimum project size of 5 kW, and that at least 20% of the generated energy is consumed at the source connection. Unutilized units are forfeited. Smart meters will also be mandatory under this model.</p>
<p><strong>Application and PPA Process</strong></p>
<p>The Commission simplified the process for domestic low-tension (LT) consumers installing DSPV systems up to 150 kW by exempting them from signing a power purchase agreement (PPA). For systems exceeding 150 kW, KERC prescribed a standardized process with fixed timelines for site verification, PPA execution, inspection, and final commissioning.</p>
<p>Distribution licensees will face penalties for failing to complete their tasks within five days of consumer work completion. In cases where delays impact commissioning, the benefit of deemed generation will be extended to the consumers.</p>
<p><strong>Connectivity Guidelines</strong></p>
<p>Consumers can use either static or digital meters with communication modules, or opt for smart meters for solar generation metering, effective July 1, 2025. Battery energy storage systems (BESS) are not mandated due to high capital costs and low adoption rates of rooftop solar energy systems.</p>
<p>Installations are permitted up to 100% of the sanctioned load with a tolerance limit of 10% for systems under 10 kW. Procurement from empanelled vendors is not compulsory. Connectivity is permitted at the LT level for capacities up to 150 kW and at the 11 kV high tension level for projects with capacities between 150 kW and 2 MW.</p>
<p><strong>Tariff Computation Parameters and Capital Cost </strong></p>
<p>The financial standards adopted by KERC include a useful life of 25 years, a debt-to-equity ratio of 70:30, an interest rate on debt of 11.1% over a 13-year tenure, a return on equity of 14%, and a working capital interest rate of 11.5%.</p>
<p>Operations and maintenance costs will be ₹791.31 (~$9.20)/kW for DSPV and ₹594,000 (~$6,906)/MW for ground-mounted systems, with an annual escalation rate of 5.72%. Depreciation is fixed at 5.38% annually for DSPV and 6.064% for megawatt-scale projects for the first 13 years.</p>
<p>The capacity utilization factor is fixed at 19% for all project categories, with an auxiliary consumption allowance of 0.25% for MW-scale systems only. No degradation factor is applied.</p>
<p><strong>Relocation and Flexibility</strong></p>
<p>The Commission has allowed consumers to relocate their solar installations within the same distribution companies’ area without requiring any amendment to the PPA, provided the sanctioned load remains unchanged. It also allowed open access consumers to opt for net or gross metering. Electricity supply companies will not compensate any excess energy injected under net metering in a billing month, and it will be treated as free power.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.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>



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					</table><p><a href="https://www.remcltd.com/" target="_blank" rel="noopener">REMCL</a>, a joint venture between the <a href="https://indianrailways.gov.in/" target="_blank" rel="noopener">Ministry of Railways</a> and <a href="https://www.rites.com/" target="_blank" rel="noopener">Rail India Technical and Economic Service</a>, has issued a tender to implement a 3 MW solar project at the Dedicated Freight Corridor Corporation of India (<a href="https://dfccil.com/" target="_blank" rel="noopener">DFCCIL</a>) complex in Noida, Uttar Pradesh.</p>
<p>The project will consist of both ground-mounted and rooftop solar installations.</p>
<p>Bids must be submitted by August 5, 2025. Bids will be opened on August 7.</p>
<p>Bidders must furnish an earnest money deposit of ₹1.20 million (~$13,953) and a tender processing fee of ₹25,000 (~$290.70) plus 18% GST.</p>
<p>The scope of work entails the design, engineering, supply, construction, erection, testing, and commissioning of the solar project. It also involves providing operation and maintenance for ten years.</p>
<p>Only modules from the Approved List of Modules and Manufacturers must be used.</p>
<p>Both solar cells and modules must be manufactured in India, with all manufacturing steps, from wafer production to module assembly, completed domestically.</p>
<p>Bidders must be Class-I local suppliers with a minimum of 50% local content.</p>
<p>They must have completed the following works:</p>
<ul>
<li>Three similar projects, each costing at least 30% of the tender value</li>
<li>Two similar projects, each costing at least 40% of the tender value</li>
<li>One similar project costing at least 60% of the tender value</li>
</ul>
<p>Bidders must have a minimum average annual contractual turnover of V/N or V, whichever is lower, where V is the tender value in crores and N is the number of years prescribed for completion.</p>
<p>Recently, REMCL <a href="https://www.mercomindia.com/remcl-floats-tender-for-1-25-mw-rooftop-solar-projects-in-maharashtra" target="_blank" rel="noopener">invited</a> bids to set up a cumulative 1.25 MW of rooftop solar projects at four railway stations in Maharashtra.</p>
<p>In January this year, the Varanasi division (electrical) of the Northeastern Railway <a title="https://www.mercomindia.com/northeastern-railway-tender-10-mw-rooftop-solar-projects-in-uttar-pradesh" href="https://www.mercomindia.com/northeastern-railway-tender-10-mw-rooftop-solar-projects-in-uttar-pradesh" target="_blank" rel="noreferrer noopener">floated</a> four tenders for a cumulative 10.4 MW on-grid rooftop solar systems at multiple buildings in Gorakhpur, Uttar Pradesh.</p>
<p>Subscribe to Mercom’s <a href="https://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>



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					</table><p>The Himachal Pradesh Electricity Regulatory Commission (<a href="https://hperc.org/" target="_blank" rel="noopener">HPERC</a>) has finalized its Resource Adequacy Framework Regulations, 2025. These regulations aim to ensure that the state’s generating companies, distribution licensees, distribution companies (DISCOMs), and load dispatch centers contract sufficient electricity generation capacity to meet peak demand reliably, cost-effectively, and sustainably.</p>
<p>The draft regulation was <a href="https://www.mercomindia.com/hperc-issues-draft-frameworl-resource-adequacy-electricity-demand" target="_blank" rel="noopener">released</a> in February this year.</p>
<p>The regulations provide a legal mandate for demand forecasting, capacity planning, and power procurement.</p>
<p>Under the finalized framework, DISCOMs must demonstrate a 100% capacity tie-up in the first compliance year and a 90% tie-up in the second. The Commission retained its earlier position that short-term power purchases, including those from the day-ahead market and real-time market, will not be counted toward meeting resource adequacy requirements (RAR).</p>
<p>It also reiterated that over 85% of the DISCOMs’ capacity must be sourced through long-term power purchase agreements, with only limited procurement allowed from short-term contracts.</p>
<p><strong>Demand Forecasting</strong></p>
<p>One of the key changes in the final order is the approval of periodic validation and refinement of demand forecasting models. A provision was added to the regulations to permit DISCOMs to refine and improve their forecasting techniques using real-time data and emerging consumption trends.</p>
<p>This flexibility enables the use of hybrid forecasting methodologies, including artificial intelligence such as machine learning, autoregressive integrated moving average models, trend analysis, and econometric models.</p>
<p><strong>Capacity Credit Method Retained</strong></p>
<p>Despite stakeholder requests to alter the capacity credit factor for renewable energy, HPERC retained the methodology based on the top 250 peak demand hours using the ‘net load base’ approach. Suggestions to revise the hours or use actual generation instead of availability were rejected.</p>
<p><strong>OTC Platforms Rejected</strong></p>
<p>The Commission firmly rejected proposals to recognize over-the-counter (OTC) platforms for electricity procurement or coordination. HPERC stated that OTC platforms are not recognized under the Ministry of Power’s bidding guidelines, cannot facilitate price discovery, and do not ensure the formation of legally binding contracts. Only the discovery of efficient electricity prices and the use of power utilities&#8217; short-term procurement platforms will be permitted for procurement under these regulations.</p>
<p>The request to allow electricity banking through OTC platforms was similarly denied, with the Commission mandating that such transactions must be conducted through open bidding. The Commission also declined to mandate competitive bidding for emergency procurement, allowing DISCOMs flexibility during unforeseen demand surges or outages.</p>
<p><strong>Compliance Definitions Unchanged</strong></p>
<p>Regulation 17, which deals with compliance and evaluation, was retained without modification despite suggestions to clarify definitions for surplus tie-ups, demand projection errors, and shortfalls. The Commission held that existing provisions under the resource adequacy plan already account for these scenarios.</p>
<p><strong>Digital Platforms and Demand Response</strong></p>
<p>While stakeholders pushed for a unified digital platform and the inclusion of demand response mechanisms in RAR calculations, the Commission noted that these are already factored into operational procedures. It declined to include them within the regulations, considering them procedural rather than regulatory matters.</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>



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					</table><p>The Uttar Pradesh Electricity Regulatory Commission (<a href="https://www.uperc.org/Default2.aspx" target="_blank" rel="noopener">UPERC</a>) has approved a tariff of ₹3.84 (~$0.044)/kWh for the procurement of 300 MW wind-solar hybrid power by Noida Power Company (<a href="https://www.noidapower.com/" target="_blank" rel="noopener">NPCL</a>).</p>
<p>The Commission also approved the power purchase agreement (PPA) signed between NPCL and Deshraj Solar Energy (DSEPL), the special purpose vehicle of Purvah Green Power (PGPPL), the winning bidder in the competitive process for the procurement of the wind-solar hybrid power.</p>
<p><strong>Background</strong></p>
<p>The case originated from NPCL’s need to address a projected power deficit in its license area (Greater Noida) from the financial year 2026-27 onwards, as indicated by Central Electricity Authority (CEA) forecasts.</p>
<p>NPCL initiated a transparent bidding process for the long-term procurement of 300 MW of power for a 25-year period. On July 9, 2024, NPCL requested the Uttar Pradesh government for a deviation from bidding norms to award the full 300 MW capacity to a single bidder, which was approved on August 22, 2024.</p>
<p>The request for selection was issued on November 8, 2024. PGPPL emerged as the lowest bidder with a quoted tariff of ₹3.84 (~$0.044)/kWh, followed by Torrent Power with a tariff of ₹3.85 (~$0.044)/kWh and Purshottam Profiles with a tariff of ₹3.90 (~$0.045)/kWh.</p>
<p>A letter of award was issued to PGPPL on December 30, 2024, and the PPA was executed with DSEPL on January 31, 2025. DSEPL&#8217;s project sites include a 150 MW solar project in Rajasthan and a 300 MW wind project in Andhra Pradesh</p>
<p>NPCL filed the petition with UPERC for tariff adoption and PPA approval. NPCL argued that existing contracts would lead to significant deficits from 2026 to 2034. The high capacity utilization factor of 48% in the wind-solar project and wind-heavy design were presented as superior for matching peak-hour demand.</p>
<p>A cost analysis indicated an annual saving of approximately ₹950 million (~$11.05 million) by choosing the current bidder over alternative arrangements, with an estimated alternative procurement tariff of ₹4.58 (~$0.053)/kWh compared to the ₹3.84 (~$0.044)/kWh quoted by the winning bidder.</p>
<p>Objections were raised by a consumer advocacy firm regarding transparency, citing alleged ties between NPCL and PGPPL, the PPA&#8217;s use of a special purpose vehicle without clear affiliate disclosure, an undated bid evaluation committee report, and the absence of board approval for the formation of the committee.</p>
<p>NPCL and PGPPL contended that the guidelines permit PPA execution with special purpose vehicles, and PGPPL&#8217;s 100% ownership by DSEPL was documented.</p>
<p><strong>Commission&#8217;s Analysis</strong></p>
<p>The Commission validated the demand-supply based on the CEA&#8217;s long-term projections, confirming the necessity of procuring 300 MW of hybrid power. The discovered tariff of ₹3.84 (~$0.044)/kWh was found to be competitive.</p>
<p>The Commission accepted the procurement from a single successful bidder, as this deviation was approved by the Uttar Pradesh government and deemed beneficial for consumers by enabling lower tariffs.</p>
<p>Technically, the wind-heavy hybrid profile was recognized for its better reliability and base load coverage during non-solar hours. While acknowledging the consumer intervenor&#8217;s concerns, UPERC found that there was no material impact on the transparency or fairness of the bidding process.</p>
<p>However, the Commission directed NPCL to seek prior approval for any future deviations from competitive bidding guidelines. NPCL was also advised to enhance internal documentation, particularly regarding the formation and process of the bid evaluation committee, including the proper dating of reports and maintaining administrative diligence.</p>
<p>The regulator directed DSEPL to commission the power projects according to the agreed-upon schedule in the PPA.</p>
<p>In May this year, UPERC <a href="https://www.mercomindia.com/uttar-pradesh-regulator-approves-1525-mw-solar-power-procurement" target="_blank" rel="noopener">approved</a> the power sale agreement and supplementary power sale agreement between Uttar Pradesh Power Corporation and National Hydroelectric Power Corporation for procuring 1,525 MW of solar power.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.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>


UPERC Approves Tariff of ₹3.84/kWh for 300 MW Wind-Solar Project


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					</table><p>The Rajasthan Electricity Regulatory Commission (<a href="https://rerc.rajasthan.gov.in/" target="_blank" rel="noopener">RERC</a>) has approved the levelized tariffs determined through a competitive bidding process conducted by the Jaipur Vidyut Vitran Nigam (<a href="https://www.bijlimitra.com/custumerLoginPage" target="_blank" rel="noopener">JVVNL</a>) for 78 solar projects with a total capacity of 228.85 MW.</p>
<p>These projects are implemented under Component C (feeder-level solarization) of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).</p>
<p>The approved tariffs range from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh.</p>
<p><strong>Background</strong></p>
<p>JVVNL floated a tender on December 13, 2024, for the solarization of 25,149 agricultural connections at the feeder level spread across 82 grid substations in Rajasthan. The tariffs discovered after the bidding process ranged from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh for a 25-year power purchase agreement period.</p>
<p>JVVNL contended that the tariff discovered was cost-effective and compliant with RERC regulations and Ministry of New and Renewable Energy (MNRE) norms, including domestic content requirements (DCR), central financial assistance (CFA) computation methodology, lease rent mechanisms, remote monitoring system installation, and transformer configurations based on site-specific requirements.</p>
<p>It emphasized that the quoted tariff range is significantly below the average variable power purchase cost of ₹4.03 (~$0.046)/kWh.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission approved the tariffs ranging from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh, stating that the highest tariff was lower than the average variable power purchase cost of ₹4.03 (~$0.046)/kWh.</p>
<p>It acknowledged that JVVNL had followed transparent processes and that the petitioner complied with MNRE guidelines and Commission directions.</p>
<p>It examined JVVNL’s adherence to MNRE guidelines, particularly the 30% CFA and the capping for 7.5 HP pump-equivalent loads, as well as the robust inclusion of DCR costs, RMS expenses, land lease rent, operations and maintenance costs, and degradation factors in the tariff computation.</p>
<p>The Commission said the distribution companies can benefit from lower procurement costs and improved compliance with the renewable purchase obligations. Farmers will benefit from improved daytime power supply and potential earnings from land leases.</p>
<p>Recently, RERC <a href="https://www.mercomindia.com/rajasthan-approves-tariffs-234-mw-kusum" target="_blank" rel="noopener">approved</a> the levelized tariffs for 233.97 MW solar projects under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).</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>


Rajasthan Regulator Approves Tariffs for 229 MW Solar Projects under KUSUM


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					</table><p>Energy storage and green hydrogen are crucial for mitigating the intermittency of renewable energy sources, such as solar and wind, thereby enabling a continuous power supply and enhancing grid reliability.</p>
<p>These issues will be discussed in depth at the fifth edition of the <a href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noopener">Mercom India Renewables Summit</a>, set to take place on July 24-25, 2025, at the Hyatt Regency, New Delhi.</p>
<p>A key session during the summit on July 24, titled <strong>“Energy Storage and Green Hydrogen: The Missing Links in India’s Renewable Energy Transition,”</strong> will address the urgent need for scalable energy storage solutions and the development of a robust green hydrogen ecosystem.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-scaled.jpg"><img loading="lazy" decoding="async" class="aligncenter wp-image-81697 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-scaled.jpg" alt="Mercom Summit Energy Storage " width="2560" height="1578" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-scaled.jpg 2560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-300x185.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-2000x1233.jpg 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-768x474.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-1536x947.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-2048x1263.jpg 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-650x401.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-624x385.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-energy-storage-600x370.jpg 600w" sizes="(max-width: 2560px) 100vw, 2560px" /></a></p>
<p>The panel will feature experts such as Inder Bhambra, Chief Business Officer at <a href="https://www.envision-energy.in/" target="_blank" rel="noopener">Envision Energy India</a>, Shri Venkatesh, Founding Partner at <a href="https://skvlawoffices.com/" target="_blank" rel="noopener">SKV Law Offices</a>, and Bhavesh Kumar Rathod, Founder and Director at <a href="https://www.soleosenergy.com/" target="_blank" rel="noopener">Soleos Solar Energy</a>.</p>
<p>Wendy Prabhu, the Co-Founder of Mercom Capital Group and the President of Mercom Communications, will moderate the session.</p>
<p>Grid-scale energy storage in India is still in its early stages, with only a few large-scale projects currently under implementation. Green hydrogen is viewed as a potential future fuel for sectors that are challenging to decarbonize, such as the steel, cement, and heavy transport industries.</p>
<p>The 60-minute session will examine the role of energy storage in ensuring grid reliability and facilitating the integration of renewable energy into the power mix. It will also explore infrastructure requirements, emerging technologies, and necessary policy interventions to support India’s net-zero goals.</p>
<p>The session will focus on how to decarbonize the target sectors using green hydrogen and the policy frameworks required to accelerate its adoption. The panel discussion will cover the competitive edge India needs to enhance its manufacturing capabilities and deploy energy storage systems, including batteries and hydrogen infrastructure.</p>
<p>The event will include the <a href="https://www.mercomindia.com/awards" target="_blank" rel="noopener">Mercom India Awards</a>, honoring outstanding achievements and the latest technological innovations driving the transformation of India’s energy markets.</p>
<p>Mercom India is also hosting the <a href="https://www.mercomindia.com/event/renewables-summit-2025/exhibitor" target="_blank" rel="noopener">Renewable Energy Exhibition</a> during the Summit. The exhibition will bring together top industry players and decision-makers to showcase their latest products and services.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">Register now</a> to attend the event and help shape the future of India’s vibrant renewable energy landscape.</p>


Accelerating India’s Net Zero Strategy with Energy Storage and Green Hydrogen


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					</table><p>Mumbai-based power infrastructure developer <a href="https://prostarm.com/" target="_blank" rel="noopener">Prostarm Info Systems</a> will establish a 1.2 GWh battery energy storage system (BESS) manufacturing plant at the Reliance Model Economic Township in Jhajjar, Haryana.</p>
<p>The facility will be developed at a cost of ₹250 million (~$2.9 million).</p>
<p>The company has secured a nine-year land lease for the development of the BESS manufacturing plant. The lease includes a land parcel of 3,912.15 sq m and a covered shed area of 34,000 sq ft.</p>
<p>The BESS manufacturing facility will cater to both commercial and industrial, as well as utility-scale applications.</p>
<p>The plant is expected to be commissioned by the end of the financial year 2026.</p>
<p>The facility entails the setting up of plant and machinery, office infrastructure, heating, ventilation, and air conditioning systems, power capacity upgrades, and anti-static flooring. It also includes warehousing and other essential infrastructure to enable high-end assembly and integration.</p>
<p>Prostarm provides services in design, manufacture, assembly, sale, and service of energy storage and power conditioning equipment.</p>
<p>It has a product portfolio comprising UPS systems, inverters, lift inverters, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers.</p>
<p>The company also undertakes engineering, procurement, and construction projects in the rooftop solar space across India.</p>
<p>Recently, Prostarm Info Systems <a href="https://www.mercomindia.com/prostarm-hindustan-power-barbrik-win-bihars-125-mw-420-mwh-bess-auction" target="_blank" rel="noopener">won</a> a capacity of 30 MW/120 MWh in Bihar State Power Generation Company’s auction to set up a standalone BESS of a cumulative capacity of 125 MW/500 MWh.</p>
<p>According to Mercom India Research’s new report, India’s Energy Storage Landscape, India <a href="https://www.mercomindia.com/india-added-341-mwh-of-energy-storage-capacity-in-2024" target="_blank" rel="noopener">installed</a> over 341 MWh of BESS in 2024, marking a more than sixfold increase from the 51 MWh installed in 2023. With these additions, India’s total installed battery energy storage capacity stood at approximately 442 MWh as of December 2024.</p>
<p>Around 60% of the installed capacity came from solar systems combined with battery storage, 36% from renewable energy integrated with round-the-clock capabilities, and approximately 4% from standalone BESS.</p>


Prostarm to Set Up 1.2 GWh BESS Manufacturing Plant in Haryana


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					</table><p>India installed over 341 MWh of battery energy storage systems (BESS) in 2024, marking an over sixfold increase from the 51 MWh installed in 2023, according to Mercom India Research’s newly released report <a href="https://www.mercomindia.com/product/india-energy-storage-landscape-2024" target="_blank" rel="noopener">India&#8217;s Energy Storage Landscape</a>.</p>
<p>With these additions, India’s total installed battery energy storage capacity stood at approximately 442 MWh as of December 2024.</p>
<p>Around 60% of the installed capacity came from solar systems combined with battery storage, 36% from renewable energy integrated with round-the-clock capabilities, approximately 4% from standalone BESS, and the 0.05% of the capacity from floating solar with storage projects.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81640 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final.png" alt="Energy Storage India" width="2764" height="1312" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final.png 2764w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-300x142.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-2000x949.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-768x365.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-1536x729.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-2048x972.png 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-650x309.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-624x296.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-1-final-600x285.png 600w" sizes="(max-width: 2764px) 100vw, 2764px" /></a></p>
<p>Raj Prabhu, CEO at Mercom Capital Group, stated, “India&#8217;s energy storage sector made significant progress in 2024, but it still has a long way to go to catch up with its global peers. The government&#8217;s mandate to co-locate storage with solar projects is a major catalyst. Requiring a two-hour system covering 10% of installed capacity is a strong, clear directive that has energized the market. It is already translating into market activity, with tenders and auctions gaining traction, along with a growing pipeline of projects. What we are seeing now is the beginning of a market shift with storage becoming central to India&#8217;s renewable energy strategy.&#8221;</p>
<p>Karnataka led in cumulative BESS installations with 36% of the total capacity, followed by Chhattisgarh with 27% and Gujarat with 17% in terms of installed energy storage capacity.</p>
<p>Priya Sanjay, Managing Director of Mercom India, stated, “The opportunity to efficiently utilize the full potential of renewable energy projects, falling battery costs, and technology developments has helped scale storage capacity additions. BESS can be used dynamically, including for round-the-clock power supply, meeting peak power demand, peak shaving, saving cost by using stored power during peak hours, replacing diesel generators, and more.”</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81641 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final.png" alt="Energy Storage India" width="2506" height="1517" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final.png 2506w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-300x182.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-2000x1211.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-768x465.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-1536x930.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-2048x1240.png 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-650x393.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-624x378.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Energy-Storage-2-final-600x363.png 600w" sizes="(max-width: 2506px) 100vw, 2506px" /></a></p>
<p>Policy measures such as viability gap funding (VGF), energy storage obligations, and increased budget allocations for pumped storage projects (PSPs) have supported this growth.</p>
<p>India has also added 4.7 GW of PSP capacity to date.</p>
<p>In terms of project pipeline, nearly 4 GWh of standalone BESS, over 4 GW of solar-plus-storage, and more than 16 GW of renewable energy-plus-storage projects were under development. Additionally, more than 51 GW of PSPs were in various stages of planning, 37 GW under survey and investigation, and 14 GW under development.</p>
<p>Gujarat currently has the highest standalone BESS capacity under development, followed by Maharashtra and Rajasthan. This growth has been supported by favorable renewable energy policies and the mandated annual energy storage obligations that extend through the financial year 2030 in these states.</p>
<p>In 2024, government agencies issued tenders for energy storage systems totaling nearly 27 GW, and around 17 GW of projects were auctioned, including standalone storage and projects combined with renewable energy. The number of solar-plus-storage tenders increased by 118% year-over-year in 2024, reflecting the growing demand for hybrid renewable energy solutions.</p>
<p>India’s energy storage investments also accelerated in 2024. Corporate funding in the sector reached over $174 million (~₹14.7 billion).</p>
<p>Sanjay noted that the banking sector’s willingness to lend to energy storage projects depends heavily on how it perceives risk. In the early days of solar, projects faced high interest rates due to uncertainty, but as the technology matured and projects performed per expectations, lending terms improved. A similar trend is expected for battery storage as the market matures.</p>
<p>Initiatives such as viability gap funding, production-linked incentives for domestic manufacturing, and the mandatory 20% storage requirement in new projects are providing market certainty. These measures are likely to drive down costs further and boost overall deployment.</p>
<p>For more information, visit: <a href="https://mercomindia.com/research/" target="_blank" rel="noopener">https://mercomindia.com/research/</a></p>
<p>Mercom India&#8217;s Energy Storage Landscape, 2024 report is 105 pages long and covers all facets of India&#8217;s energy storage projects. For the complete report, visit: <a href="https://www.mercomindia.com/product/india-energy-storage-landscape-2024" target="_blank" rel="noopener">https://www.mercomindia.com/product/india-energy-storage-landscape-2024</a></p>


India Added 341 MWh of Energy Storage Capacity in 2024


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					</table><p>The Gujarat Electricity Regulatory Commission (<a href="https://gercin.org/" target="_blank" rel="noopener">GERC</a>) has approved the power purchase agreement (PPA) signed between Gujarat Urja Vikas Nigam (<a href="https://www.guvnl.com/contactus.html" target="_blank" rel="noopener">GUVNL</a>) and NTPC Renewable Energy (<a href="https://ntpcrel.co.in/" target="_blank" rel="noopener">NREL</a>) for procuring 500 MW of solar power at a tariff of ₹2.78 (~$0.032)/kWh.</p>
<p>The project will be at the Khavda Renewable Energy Park in Kutch, Gujarat.</p>
<p><strong>Background</strong></p>
<p>The case originated from GUVNL&#8217;s petition seeking GERC&#8217;s approval for a PPA with NREL for 500 MW of solar power. NREL had offered to supply 500 MW of solar power to GUVNL at ₹2.78 (~$0.032)/kWh on April 12, 2023. GUVNL and NREL engaged in negotiations between April and June 2023, with the petitioner pushing for terms aligned with tariff-based competitive bidding guidelines (TBCB).</p>
<p>However, NREL maintained that the PPA was bilateral and would not follow standard TBCB clauses. Modifications were eventually agreed upon, including clauses on the scheduled commercial operation date (SCOD) and liquidated damages. The PPA was signed on March 15, 2024.</p>
<p>GUVNL argued that signing a bilateral PPA was necessary due to the advanced stage of project development in the Khavda park, which would help avoid delays typically caused by land acquisition and infrastructure bottlenecks. It also submitted that the tariff offered was within the market range seen in previous Khavda tenders, which was between ₹2.54 (~$0.029) and ₹2.89 (~$0.033)/kWh.</p>
<p>It added that it required the power to meet the renewable purchase obligations (RPOs) mandated by the Ministry of Power and the Commission. NREL did not submit a reply in the proceedings but reiterated that the agreement was not bid-based and should be treated as a negotiated deal.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>GERC approved the fixed tariff of ₹2.78 (~$0.032)/kWh based on the price at which power is delivered to the interstate transmission system (ISTS). It also acknowledged that the tariff was competitive and reasonable compared to recent rates discovered in  Khavda.</p>
<p>However, since the project is expected to be completed after June 30, 2025, it will not be eligible for the government’s 100% waiver on ISTS charges. As a result, GUVNL must pay 25% of the transmission charges and energy losses for using the interstate network.</p>
<p>The Commission emphasized that the approved PPA would also facilitate the implementation of state-level renewable initiatives, such as the Kisan Suryodaya Yojana. It further clarified that approving such bilateral PPAs does not violate procurement norms when the terms are justified, and the power purchase is in the public interest.</p>
<p>GERC acknowledged that timely procurement was essential for GUVNL to comply with its RPO requirements, which are projected to reach up to 43.33% by 2029–30.</p>
<p>Recently, the GERC <a href="https://www.mercomindia.com/gerc-approves-tariff-wind-solar-power-procurement" target="_blank" rel="noopener">approved</a> a tariff of ₹3.70 (~$0.043)/kWh for the procurement of 9.9 MW of wind-solar hybrid renewable energy by a power distribution licensee in GIFT City, Gujarat.</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>


GERC Approves Tariff of ₹2.78/kWh for 500 MW Solar Power Procurement


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					</table><p><a href="https://www.iljin.co.in/" target="_blank" rel="noopener">ILJIN Electronics</a>, a material subsidiary of Amber Group, has entered into definitive agreements for a majority stake in Bengaluru-based <a href="https://poweroneups.com/" target="_blank" rel="noopener">Power One Micro Systems</a>.</p>
<p>Power-One offers battery energy storage systems (BESS), solar inverters (on-grid, off-grid, and hybrid), electric vehicle charging solutions, and uninterrupted power supply solutions.</p>
<p>The financial details of the transaction were not disclosed.</p>
<p>Power-One caters to multiple clients in the public and private sectors.</p>
<p>Greater Noida-based ILJIN Electronics is an integrated provider of printed circuit board (PCB) assembly and bare board PCB solutions.</p>
<p>The stake acquisition will enable ILJIN Electronics to unlock avenues of operational synergies and strategic growth opportunities. The Amber group company’s experience in electronic manufacturing services, pan-India manufacturing footprint, and R&amp;D capability will help Power-One to expand its capabilities, accelerate product innovation, and strengthen its position in the BESS, solar inverters, and solar products and services.</p>
<p>Battery energy storage is gaining traction in India, driven by the increasing integration of renewable energy into the grid. The government has <a href="https://www.mercomindia.com/government-mandates-two-hour-energy-storage-integration-in-solar-tenders" target="_blank" rel="noopener">mandated</a> renewable energy implementing agencies to incorporate a minimum two-hour co-located energy system, equivalent to 10% of the annual solar installed capacity, in all future tenders.</p>
<p>Renewable energy experts speaking at Mercom India’s Coimbatore C&amp;I Clean Energy Meet <a href="https://www.mercomindia.com/battery-energy-storage-systems-are-phasing-out-diesel-generators" target="_blank" rel="noopener">opined</a> that BESS will likely phase out power banking in the coming years.</p>
<p>Earlier this year, the Ministry of Power <a href="https://www.mercomindia.com/government-54-billion-vgf-battery-storage" target="_blank" rel="noopener">announced</a> the second tranche of viability gap funding (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>According to Mercom’s Annual and Q4 2024 Solar Funding and M&amp;A Report, mergers and acquisitions <a href="https://mercomindia.com/corporate-funding-in-the-solar-sector-dropped-24-yoy-in-2024" target="_blank" rel="noopener">witnessed</a> a 15% YoY decline in 2024, with 82 transactions compared to 96 in 2023. There were 82 such transactions announced in 2024, with 21 projects costing $17.3 billion. By comparison, 96 companies (27 of which were disclosed) were acquired for $12.4 billion in 2023.</p>


ILJIN Electronics Forays into BESS, Buys Majority Stake in Power-One


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					</table><p>Commercial and industrial (C&amp;I) units in India are increasingly adopting solar energy as a viable, cost-effective, and sustainable alternative to conventional power sources. Driven by rising awareness, volatile energy prices, and the growing emphasis on energy independence, solar adoption is gaining strong momentum, particularly in energy-intensive sectors.</p>
<p>Industries with high emissions and significant power consumption, such as iron and steel, cement, petrochemicals, chemicals, textiles, foundries, automobiles, pharmaceuticals, and metals, are embracing clean energy solutions as part of their broader decarbonization efforts.</p>
<p>A panel discussion on “How Industries and Commercial (C&amp;I) Units Are Pursuing Green Growth” will be featured at Mercom India’s fifth edition of the <a href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noopener">Renewables Summit</a>, scheduled for July 24–25, 2025, at the Hyatt Regency, New Delhi. The session will explore the opportunities and challenges businesses face while transitioning to cleaner energy sources.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-scaled.jpg"><img loading="lazy" decoding="async" class="aligncenter wp-image-81637 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-scaled.jpg" alt="C&amp;I Mercom Summit" width="2560" height="1578" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-scaled.jpg 2560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-300x185.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-2000x1233.jpg 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-768x474.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-1536x947.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-2048x1263.jpg 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-650x401.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-624x385.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Session-CI-1-600x370.jpg 600w" sizes="(max-width: 2560px) 100vw, 2560px" /></a></p>
<p>The session will feature Kartikeya Narain Sharma, Co-Founder and Chief Business Officer at <a href="https://sunsure-energy.com/" target="_blank" rel="noopener">Sunsure Energy</a>; Manoj Kumar Singh, Director General at the <a href="https://www.dipa.co.in/" target="_blank" rel="noopener">Digital Infrastructure Providers Association</a>; Vinay Vyas, CEO EPC Business at <a href="https://enrichenergy.com/" target="_blank" rel="noopener">Enrich Energy</a>; and Birendra Pandey, Head of Energy Commercialization at <a href="https://enfinity.global/" target="_blank" rel="noopener">Enfinity Global India</a>, on the panel.</p>
<p>The 60-minute session will explore strategies adopted by C&amp;I consumers to navigate compliance and regulatory issues, optimize investment decisions, and align renewable energy goals with broader corporate sustainability mandates.</p>
<p>The panelists will shed light on best practices and emerging trends in the adoption of renewable energy by the commercial and industrial (C&amp;I) sector.</p>
<p>The 2025 Summit features three side events: the Mercom India Awards, the Cleantech Startup Pitch Competition, and the inaugural Renewable Energy Exhibition.</p>
<p>The <a href="https://www.mercomindia.com/awards" target="_blank" rel="noopener">Mercom India Awards</a> will honor outstanding achievements and the latest technological innovations driving the transformation of India’s energy markets.</p>
<p>The <a href="https://www.mercomindia.com/event/startup" target="_blank" rel="noopener">Startup Pitch Competition</a> will provide a platform for early-stage companies in the clean energy space to showcase their transformative ideas to the industry.</p>
<p>The <a href="https://www.mercomindia.com/event/renewables-summit-2025/exhibitor" target="_blank" rel="noopener">Exhibition</a> will offer attendees the opportunity to connect with industry leaders, explore new business opportunities, and enhance their brand visibility. The exhibition will have renewable energy companies showcasing a wide range of cutting-edge renewable energy solutions and services.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">Register now</a> to attend the event and help shape the future of India’s vibrant renewable energy landscape.</p>


India’s C&I Sector Increasingly Adopting Clean Energy to Decarbonize Operations


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					</table><p><a href="http://patelinfra.com/" target="_blank" rel="noopener">Patel Infrastructure</a> and Enerica Infra 3 (<a href="https://www.energrid.in/" target="_blank" rel="noopener">EnerGrid</a>) won <a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a>’s auction to develop 375 MW/1,500 MWh standalone battery energy storage system (BESS) in Uttar Pradesh under the build-own-operate model.</p>
<p>Patel won 187.5 MW/750 MWh at a tariff of ₹359,000 (~$4,199)/MW/month. Enerica also bagged 187.5 MW/750 MWh at a tariff of ₹359,999 (~$4,211)/MW/month.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81590 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1.png" alt="SJVN's VGF Tender for 1,500 MWh Standalone Battery Energy Storage Systems Auction Result" width="716" height="251" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1.png 716w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1-300x105.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1-650x228.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1-624x219.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SJVNs-VGF-Tender-for-1500-MWh-Standalone-Battery-Energy-Storage-Systems-Auction-Result-1-600x210.png 600w" sizes="(max-width: 716px) 100vw, 716px" /></a></p>
<p>The tender was <a href="https://www.mercomindia.com/sjvn-invites-bids-for-375-mw-1500-mwh-standalone-bess-in-uttar-pradesh/" target="_blank" rel="noopener">issued</a> in February this year.</p>
<p>The BESS will be eligible for Viability Gap Funding (VGF) support of up to ₹2.7 million (~$31,598)/MWh or 30% of the capital cost, whichever is lower.</p>
<p>Developers must design, finance, engineer, procure, construct, operate, and maintain the BESS project. They must ensure compliance with grid standards, safety norms, and performance benchmarks. Bidders must have prior experience in battery storage.</p>
<p>They must also ensure that the BESS is available for one operational cycle of four hours daily, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC round-trip efficiency of 85% every month.</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>SJVN will enter into a 20-year battery energy storage purchase agreement with the selected developers.</p>
<p>The interconnection point is specified at the Uttar Pradesh Power Transmission Corporation’s 400kV/220kV Garautha Substation in Jhansi District, with power being injected into the state transmission utility network. Developers must obtain connectivity approval.</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 (~$21,065)/MWh will be provided to support the development of 30 GWh of BESS capacity.</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.</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>


Patel Infrastructure, Enerica Win SJVN’s 1.5 GWh Battery Energy Storage Auction


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					</table><p><a href="https://bajelprojects.com/" target="_blank" rel="noopener">Bajel Projects</a> has secured an engineering, procurement, and construction (EPC) order for package TL04 of the Siwani-Jind (PG) 400 kV double-circuit (quad) transmission line from Power Grid Corporation of India (<a href="https://www.powergrid.in" target="_blank" rel="noopener">PGCIL</a>).</p>
<p>The order’s value is between ₹3 billion (~$34.88 million) and ₹4 billion (~$46.51 million).</p>
<p>The EPC order is part of the transmission projects <a href="https://www.mercomindia.com/pgcil-bags-projects-to-evacuate-12-gw-of-renewable-energy-from-rajasthan" target="_blank" rel="noopener">won</a> by PGCIL from REC Power Development and Consultancy in October 2024 to evacuate a cumulative 12 GW of power from the Renewable Energy Zone (REZ) Phase-IV in Rajasthan. The company bagged the tenders for two transmission projects of 6 GW each in the state’s Bikaner complex.</p>
<p>PGCIL placed the order on behalf of its special purpose vehicle, POWERGRID Siwani Transmission.</p>
<p>The scope of work entails setting up the new 765/400 kV Siwani substation. It also includes providing the following:</p>
<ul>
<li>A static synchronous compensator</li>
<li>A 765 kV DC transmission line traversing Rajasthan and Haryana</li>
<li>Various 400 kV DC transmission lines traversing through Haryana</li>
</ul>
<p>Bajel Projects must conduct bay extension works for the transmission lines at other existing substations in Rajasthan and Haryana. It must also construct a 400 kV transmission line spanning approximately 99 km.</p>
<p>The project must be completed within 18 months.</p>
<p>Bajel Projects has four business verticals – power transmission, distribution, monopoles, and international EPC. It has executed high-voltage and extra high-voltage transmission projects and substations.</p>
<p>In February this year, PGCIL <a title="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" href="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" target="_blank" rel="noreferrer noopener">bagged</a> two transmission projects from PFC Consulting to evacuate 15.5 GW of power from renewable energy zones in Karnataka and Rajasthan. The transmission project in Rajasthan involved augmenting interconnection transformers at various substations to facilitate the evacuation of power from the REZ Phase-IV. The Ministry of New and Renewable Energy identified 75 GW of renewable energy potential in the state for evacuation.</p>
<p>Last December, PGCIL was <a href="https://www.mercomindia.com/pgcil-bags-project-to-strengthen-transmission-system-in-karnataka" target="_blank" rel="noopener">awarded </a>PFC Consulting’s interstate transmission system strengthening project to evacuate renewable energy from Gadag and Koppal regions in Karnataka.</p>


Bajel Projects Wins Renewable Energy Transmission EPC Order


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					</table><p>Nearly $1.2 trillion must be invested globally in battery energy storage systems (BESS) to support the installation of over 5,900 GW of new wind and solar capacity through 2034, according to <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.</p>
<p>The deployment of grid-forming technology needs to accelerate over the next decade to facilitate the projected $5 trillion global expansion of renewable energy.</p>
<p>Unlike conventional grid-following systems that only react to existing grid conditions, grid-forming BESS can actively generate and sustain grid stability. This function is becoming increasingly vital as renewable energy becomes the primary source of power generation worldwide.</p>
<p>Grid-forming battery energy storage represents a significant advancement in integrating renewable energy. With global electricity demand expected to rise by 55% by 2034 and variable renewables making up over 80% of new capacity, this technology offers a key solution for balancing renewable energy supply with grid reliability.</p>
<p>The global power sector is facing a shortfall of 1,400 GW in battery energy storage capacity equipped with grid-forming technology, which is essential for maintaining grid stability between 2024 and 2034.</p>
<p>In several Asia-Pacific countries, wind and solar power already contribute between 46% and 90% of electricity during peak demand, highlighting a significant market opportunity as grid-forming solutions become increasingly important in regions with high renewable energy penetration.</p>
<p>Wood Mackenzie said that although the pace of renewable energy integration is gaining momentum worldwide, recent incidents of grid instability underscore the need to advance both storage and grid technologies simultaneously. The 2025 blackout in Spain serves as a clear example of the risks associated with high levels of renewable power without the necessary grid-forming capabilities or advanced storage systems to maintain system reliability.</p>
<p>Grid-forming battery energy storage systems offer several key stability functions. These include acting as independent voltage sources, providing strong current support during disturbances, delivering inertia-like response comparable to traditional power plants, and enabling black start capabilities for full system recovery after outages.</p>
<p>While grid-forming capabilities add an estimated 15% to overall system costs, largely due to upgraded inverters, controls, and software, these cost hurdles are becoming more manageable as average battery energy storage prices have declined across global markets in the past year.</p>
<p>In 2024, battery prices <a href="https://www.mercomindia.com/24-hour-uninterrupted-solar-power-with-battery-storage-is-real-ember/" target="_blank" rel="noopener">dropped</a> 40%, reaching a record low of $165/kWh for a fully integrated system (excluding engineering, construction, procurement, and grid connection costs). Driven by the rising demand and falling costs, 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.</p>
<p>The economic case for advanced battery storage systems is growing stronger in markets worldwide. Hybrid utility-scale solar projects paired with battery energy storage are already matching or beating the cost of onshore wind, and forecasts suggest that large-scale battery systems will become more affordable than coal and gas power generation by 2040 in many regions outside the U.S.</p>
<p>The U.S. <a href="https://www.mercomindia.com/us-energy-storage-hits-new-q1-record-with-over-2-gw-installed/" target="_blank" rel="noopener">added</a> more than 2 GW of energy storage systems across all segments in the first quarter (Q1) of 2025, marking the highest Q1 on record. Utility-scale energy storage added 1,558 MW, while residential energy storage accounted for 458 MW.</p>
<p>Regulatory momentum is also building in support of grid-forming battery technology. Countries such as China, the U.S., and Australia have begun rolling out detailed technical guidelines to enable their deployment. These efforts reflect a growing understanding of the role grid-forming batteries can play in maintaining stability as solar, wind, and storage account for a larger share of electricity generation. Although international standards are still evolving, early regulatory developments show a clear shift toward favoring advanced grid-forming capabilities.</p>
<p>In the Asia-Pacific region, markets such as China, India, Japan, and Vietnam are already meeting a significant portion of their peak demand through renewable energy, with supply levels ranging from 46% to 92%. This variability is contributing to increased curtailment, emphasizing the need for technologies that can ensure grid stability while maximizing the use of renewable energy.</p>
<p>With global electricity demand expected to rise at an average annual rate of 3% through 2040, according to Wood Mackenzie, grid-forming batteries are emerging as a viable alternative to traditional synchronous generators. Their ability to maintain voltage and frequency is making them a critical component of future power systems dominated by renewable energy.</p>


$1.2 Trillion Needed for Battery Storage to Support Renewables by 2034: Report


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					</table><p>The International Finance Corporation (<a href="https://www.ifc.org/en/home" target="_blank" rel="noopener">IFC</a>) and Mumbai-based power transmission and renewable energy company <a href="https://www.indigrid.co.in/" target="_blank" rel="noopener">IndiGrid</a> have announced a partnership to develop a 180 MW/360 MWh standalone battery energy storage system (BESS) project in Gujarat.</p>
<p>The partnership aims to strengthen Gujarat’s clean energy infrastructure by enhancing grid stability and ensuring a reliable power supply during periods of peak demand.</p>
<p>IFC has committed ₹4.6 billion (~$53.49 million) in long-term financing to IndiGrid through a subscription to listed non-convertible debentures. This commitment includes approximately $38.5 million from IFC’s account and $16.5 million in concessional support from the Clean Technology Fund, a multi-donor trust fund under the World Bank-hosted Climate Investment Funds framework.</p>
<p>The investment was made during the quarter ending June 30, 2025. Since 2023, IFC has provided an aggregate debt line of ₹32.5 billion (~$377.91 million) to IndiGrid.</p>
<p>Imad N. Fakhoury, Regional Director for South Asia, IFC, stated that the investment supports Gujarat’s target of achieving 100 GW of renewable capacity by 2030.</p>
<p>IndiGrid manages projects worth over ₹319 billion (~$3.71 billion), including 43 power projects, 53 transmission lines, 16 substations, approximately 1.15 GW of solar generation capacity, and 450 MW/900 MWh of BESS. The Kilokari BESS project was awarded to IndiGrid in October 2023 by BSES Rajdhani Power.</p>
<p>In June this year, IndiGrid <a href="https://www.mercomindia.com/indigrid-to-acquire-solar-and-transmission-assets-from-renew-for-%E2%82%B921-billion" target="_blank" rel="noopener">announced</a> it would acquire ReNew Surya Aayan and Koppal–Narendra Transmission for a total enterprise value of ₹21.08 billion (~$245.12 million). IndiGrid will acquire 100% shareholding and management control of both companies.</p>
<p>In April this year, Indigrid <a href="https://www.mercomindia.com/indigrid-commissions-indias-first-bess-project-for-discoms-in-delhi" target="_blank" rel="noopener">commissioned</a> India’s first commercial standalone BESS project with a 20MW/40MWh capacity at the distribution company level, and a tariff approved by the electricity regulatory authority.</p>
<p>Last year, IndiGrid <a href="https://www.mercomindia.com/nvvn-1-gwh-battery-storage-auction" target="_blank" rel="noopener">won</a> NTPC Vidyut Vyapar Nigam’s auction to set up a 500 MW/1000 MWh standalone BESS with Viability Gap Funding support. IndiGrid 2 was awarded 250 MW at a tariff of ₹236,999 (~$2,819)/MW/month.</p>


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