JSW Energy’s 500MW Storage Tender Faces Hurdles with CERC’s Intervention

The Central Electricity Regulatory Commission (CERC) has rejected a tender for a 500 MW/1000 MWh standalone battery energy storage system won by JSW Energy due to the long delay in awarding the Letter of Award (LoA) and signing the agreement with the power purchasing utility, Gujarat Urja Vikas Nigam Limited (GUVNL). CERC cited that the delay had resulted in lower rates being achieved in subsequent tenders, making the original winning price of Rs 10.88/unit quoted by JSW Energy non-competitive. SECI, which conducted the e-Reverse Auction, is likely to not challenge the decision as it is already facing scrutiny for the Adani Group’s unsuccessful bid. CERC’s rejection effectively shuts down the project and raises concerns about the prioritization of consumers’ interests over generators’ interests in the energy market.