Daily News Wrap-Up: Power Ministry Permits 4-Hour, 1-Cycle BESS Operation
KERC upheld KSEBL’s decision to levy fixed charges on domestic solar prosumers
October 6, 2025
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The Ministry of Power allowed states to implement standalone battery energy storage system (BESS) projects under viability gap funding, supported by the Power System Development Fund, in both two-hour and four-hour configurations. The original guidelines specified that the BESS capacity should preferably have a two-hour discharge duration and average one and a half cycles per 24-hour period. The amended guidelines, however, clarified that states can retain the right to utilize at least 6,300 cycles of BESS operation during the contract term. The Ministry permitted deviation from the guidelines in response to requests from Bihar, Odisha, Chhattisgarh, Rajasthan, and Kerala.
The Kerala State Electricity Regulatory Commission upheld Kerala State Electricity Board’s (KSEBL) levying fixed charges on domestic solar prosumers under net-metering arrangements. The order clarified that there is no illegality in KSEBL’s current billing practice of collecting fixed charges based on total consumption, which includes grid imports, self-generation consumed at the premises, and banked energy. The Commission, however, introduced an alternative option for consumers to pay fixed charges based on connected load and directed KSEBL to complete a review of security deposits within one month.
The Ministry of Heavy Industries notified operational guidelines for deploying electric vehicle (EV) public charging stations under the PM Electric Drive Revolution in Innovative Vehicle Enhancement program. Subsidies will be provided for EV public charging stations and battery swapping stations or battery charging stations. While subsidies will primarily cover upstream infrastructure costs, support may also extend to EV supply equipment costs in certain cases.
Fleetguard Filters, a provider of filtration solutions for automotive, industrial, and engine applications, commissioned a 1.055 MW rooftop solar system at its plant in Pune, Maharashtra. Executed under an operational expenditure model by B. U. Bhandari Energy, the project is designed to curb grid power purchases and shrink the company’s carbon footprint without incurring upfront capital expenditure. The company’s pre-solar consumption averaged approximately 450,000 kWh per month. With the new system online, Fleetguard Filters expects electricity bills to decrease by approximately 40–50%, resulting in immediate savings compared to prevailing grid tariffs.
The Tamil Nadu Green Energy Corporation invited bids to set up 40 MW grid-connected rooftop solar power projects on government buildings in Tamil Nadu under the renewable service company model. The last date to submit bids is October 27, 2025. Bids will be opened on October 28. The scope of work covers site survey, design, supply, erection, testing, and commissioning of the rooftop solar projects. It also includes a security warranty and operation and maintenance (O&M) of the rooftop solar projects for 25 years.
The Northern Power Distribution Company of Telangana floated a tender to set up 1.2 MW ground-mounted solar projects at the 33/11 kV Nerella substation in Karimnagar district. Bids must be submitted by October 10, 2025. Bids will be opened on the same day. The scope of work entails the design, supply, transportation, installation, testing, and commissioning of the solar projects. It also involves providing operation and maintenance services for five years.
Prime Minister Narendra Modi recently inaugurated three solar power projects in Rajasthan, and Andhra Pradesh with a cumulative capacity of 800 MW. The events featured the commissioning of a 200 MW solar project by SAEL Group’s Sunfree Energy RJP1, the inauguration of EDEN Renewables India’s 300 MW Alma Solar PV Project, and the foundation stone laying for a 300 MW solar project by Amara Raja Infra for Solar Energy Corporation of India.
A joint venture between the Steel Authority of India and NTPC, NTPC-SAIL Power Company, commissioned a 15 MW floating solar project at the Maroda-1 reservoir of the Bhilai Steel Plant in Chhattisgarh. Spread over 80 acres, the floating project was built at a cost of ₹1.11 billion (~$12.5 million). The work for the floating solar power project was awarded to engineering, procurement, and construction contractor Madhav Infra Projects in May last year. The tender for the project was floated in January 2024.
Bihar Government issued its Draft Green Hydrogen Policy 2025, aiming to achieve a production capacity of 0.25 million metric tons per annum of green hydrogen and green ammonia by 2030. The policy will facilitate the creation of production, consumption, and market elements throughout the entire value chain of green hydrogen/ammonia units. It notes that green hydrogen has immense potential for consumption in sectors such as nitrogenous fertilizers, chemicals, refineries, heavy vehicles, energy storage, iron and steel, and city gas distribution. The initial emphasis will be on utilizing hydrogen in the state’s nitrogenous fertilizer and refinery industries. Subsequently, the policy will cover applications of green hydrogen in other emerging industries, aligning with the National Green Hydrogen Mission.
Solar module manufacturer Waaree Energies commenced commercial operations at its 950 MW solar module manufacturing plant located in the Navsari district of Gujarat. The company is planning new facilities for 3 GW of modules at Samakhiali, Gujarat; 3 GW of modules in Gujarat, Tamil Nadu, or any other location; 6 GW of solar cells at Unn, Gujarat; and 6 GW of ingots and wafers at Nagpur, Maharashtra. As of the first quarter (Q1) of the financial year 2026, Waaree has a solar module manufacturing capacity of 15.1 GW and a solar cell manufacturing capacity of 5.4 GW.
Oil India and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) signed an agreement to establish a joint venture company for developing 1.2 GW of renewable energy projects in Rajasthan. The proposed projects will include 1,000 MW of solar and 200 MW of wind energy, which will be developed within RVUNL’s Renewable Energy Park. The agreement follows Oil India’s board of directors’ approval for the formation of a 50:50 joint venture with RVUNL. The board also approved the transfer of renewable energy assets to OIL Green Energy, a wholly owned subsidiary that drives Oil India’s clean energy portfolio, which includes renewable energy projects, compressed biogas, energy storage, and green hydrogen.
The U.S. community solar market slowed in the first half of 2025 after a record-breaking year in 2024, with 437 MW of new capacity installed, reducing 36% year-over-year (YoY), according to a report by Wood Mackenzie and the Coalition for Community Solar Access. Wood Mackenzie’s cumulative five-year outlook for the sector decreased by 8% compared to the one for Q2 2025 after the passage of the One Big Beautiful Bill Act and related federal policy changes. In Q2, the community solar segment installed 174 MW, a 52% YoY and a 34% quarter-over-quarter decline, witnessing the lowest additions since Q1 2021, according to Wood Mackenzie and Solar Energy Industries Association’s US Solar Market Insight report.
Italy’s transmission system operator Terna awarded 10 GWh of energy storage capacity in the first auction held under the Electricity Storage Procurement Mechanism across the Central-South, South, Calabria, Sicily, and Sardinia distinct zones. The auction results highlight significant market interest, with bids exceeding demand by more than four times and a weighted average clearing price of €12,959 (~$15,200)/MWh/year, well below the ceiling tariff of €37,000 (~$43,400)/MW/year. The price discovered in the Central-South region was €14,566 (~$17,085)/MWh/year, South and Calabria €12,146 (~$14,247)/MWh/year, Sicily €15,846 (~$18,587)/MWh/year, and Sardinia €15,029 (~$17,628)/MWh/year.
The U.S. Department of Energy (DOE) announced the termination of 321 financial awards supporting 223 energy projects, a majority of which are clean energy projects, claiming an estimated savings of $7.56 billion. The terminated awards were issued by six offices, including those for clean energy demonstrations, energy efficiency and renewable energy, grid deployment, manufacturing and energy supply chains, the Advanced Research Projects Agency-Energy, and fossil energy. Recently, DOE planned to return more than $13 billion that had been approved under the Biden administration to incentivize the development of renewable energy projects.