The Delhi Electricity Regulatory Commission (DERC) has approved a Battery Energy Storage System (BESS) collaboration between BSES Rajdhani Power Limited (BRPL) and Kilokari BESS. This initiative aims to develop a 20MW/40MWh energy storage system.
Additionally, the DERC has endorsed a unified tariff model, setting capacity charges at Rs 57 lakh per MW annually. These charges will be invoiced monthly as per the agreement’s terms.
BRPL filed a petition under the Electricity Act, 2003, seeking approval for the BESS agreement signed on December 12, 2023, and the adoption of a unified tariff structure. This project is designed to store, charge, and discharge electricity for BRPL at the 33/11 kV Kilokari grid substation.
The petition also sought approval for deviations from the Ministry of Power’s guidelines on procuring and utilizing BESS for energy assets, including ancillary services. BRPL, a joint venture between R-Infra Ltd. and Delhi Power Company (DPCL), partnered with IndiGrid 2 and Amperehour Solar Technology to establish Kilokari BESS, a special purpose vehicle.
The DERC provided initial approval on July 26, 2023. Following this, the Ministry of Power released a national framework in August 2023 to promote energy storage systems. BRPL engaged the Energy and Resources Institute (TERI) as a bid manager on August 24, 2023, and awarded the letter of intent to IndiGrid 2 on October 23, 2023. The BESS agreement was executed on December 22, 2023.
The DERC acknowledged that BRPL’s bidding process followed Ministry of Power guidelines, with minor deviations. The agreed capacity charge of Rs 57 lakh per MW annually was lower than BRPL’s initial proposal of Rs 1.012 crore per MW per year.
BRPL did not incur any capital expenditures for this project, and any financial gains will be passed on to customers as a net offset in the power purchase cost included in the Annual Revenue Requirement (ARR). If BRPL assumes control of the project due to default, they will only receive the agreed rate of Rs 57 lakh per MW annually.
The DERC has mandated that any financial benefits from the project’s operation be transferred to consumers as a net offset in the ARR.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
