CERC Approves ₹4.01/kWh Tariff For Chhattisgarh’s 100 MW Solar Plus 40 MW BESS Project

The Central Electricity Regulatory Commission has issued a final order on Petition No. 137/GT/2024 regarding the determination of a project-specific tariff for a renewable energy project in Chhattisgarh. The petition was filed by the Solar Energy Corporation of India Limited for a 100 MW solar power plant integrated with a 40 MW/120 MWh Battery Energy Storage System in Rajnandgaon. The Chhattisgarh State Power Distribution Company Limited was the respondent in the case. After reviewing the submissions made by both parties, the Commission approved a levelized tariff of ₹4.01 per kWh for the project. This tariff will apply for a period of 25 years from the project’s Commercial Operation Date.

SECI had initially proposed a tariff of ₹4.71 per kWh, which was later revised to ₹4.22 per kWh. The Commission considered various factors in the tariff determination process, including claims related to a change in the GST rate and costs arising from the revision of the project’s land area. It concluded that these costs had already been accounted for in the overall computation and therefore a separate adjustment was not required. By approving the tariff at ₹4.01 per kWh, the Commission provided a clear financial framework for this innovative project that combines large-scale solar generation with battery storage.

The project is considered one of the first major attempts to demonstrate the commercial feasibility of utility-scale battery storage in India. The storage system is designed to manage peak demand, optimize energy dispatch, and minimize losses due to energy spillage. By doing so, it improves both efficiency and reliability. Such hybrid systems are seen as critical in enabling the integration of variable renewable energy sources into the national grid while ensuring stability. The regulatory approval for this project is therefore a significant milestone for India’s renewable energy sector.

Several important steps marked the development of the project. A Power Purchase Agreement was signed between SECI and CSPDCL, followed by a supplementary agreement to revise the DC capacity of the plant. The engineering, procurement, and construction contract was awarded to Tata Power Solar Systems Limited, ensuring that a major domestic company will deliver the project. The Commission, while finalizing the tariff, also examined capital cost, interest on loan, and operation and maintenance expenses. Special consideration was given to the battery component, including its chemistry, performance standards, and replacement requirements during the life of the project.

The Commission’s order highlights the importance of hybrid renewable projects that can help balance supply and demand. With the tariff finalized and the financial model clarified, the project is expected to set a benchmark for future solar-plus-storage projects across the country. It signals regulatory readiness to support advanced technologies in renewable energy and to encourage investment in projects that strengthen grid resilience. This decision is a positive step towards achieving India’s renewable energy goals while ensuring affordability and financial viability for distribution companies. The order not only resolves the tariff issue but also provides a clear precedent for upcoming projects that integrate renewable generation with storage solutions.