The Haryana Electricity Regulatory Commission (HERC) has asked the Haryana Power Purchase Centre (HPPC) to study the financial viability of a solar project coupled with battery energy storage system (BESS).

The HERC was examining a petition filed by HPPC seeking approval to purchase 100 MW solar power with BESS on long-term basis, through competitive bidding, in order to meet its solar renewable purchase obligation (RPO) targets.

While examining the petition, the commission observed that HPPC had not submitted any details of the terms and conditions, including the benchmark cost of the proposed tender. The financial feasibility study of purchasing the proposed power, and data of such purchase by any other state, has also not been furnished by the HPPC.

When asked to furnish details, the HPPC responded by saying that an expression of interest (EoI) notice had been issued by it which will answer these questions.

The HPPC also stated, “At this stage, in-principle approval has been sought, so that they can study the commercial viability of the project and thereafter they will file the petition in the commission for the requisite approval.”

Since solar power coupled with BESS is in a relatively nascent stage in India and a lot of research and development is still underway which is likely to affect the market dynamics significantly, the HERC granted in-principle approval to the HPPC to study the project of battery storage solar system and collect all the relevant data and information.

The state commission has also asked HPPC to explore the market and revert with a comprehensive proposal in the matter.

Recently, the HERC issued an order approving the deviations to the terms of competitive bidding, the conditions of request for proposal (RfP) and the draft power purchase agreement (PPA) for 300 MW of solar projects by HPPC.

Image credit: Azure Power