CERC Disapproves JSW Energy’s 500MW Storage Tender, Deal in Jeopardy

The Central Electricity Regulatory Commission (CERC) has cancelled the tender won by JSW Energy for a 500 MW/1000 MWh standalone battery energy storage system (BESS) project. The tender was won at a rate of Rs 10.88 per unit, but CERC rejected the adoption of the tariffs and margins. The commission cited the long delays by SECI (Solar Energy Corporation of India) in issuing the letter of award (LoA) and signing the Battery Energy Storage Sales Agreement (BESSA) with the distribution licensee Gujarat Urja Vikas Nigam Limited. The delays resulted in other tenders being awarded at lower rates, including one won by JSW Energy itself. The CERC concluded that the delays would not be in the best interest of consumers and referred to a similar case in the Supreme Court. The project, which was expected to be commissioned by June 2025, is now under question, with JSW Energy’s hopes of participating in the ancillary market with the open capacity uncertain.