Andhra Pradesh Discoms Seek APERC Approval For 500 MW/1000 MWh Battery Energy Storage Project

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a public notice regarding a significant proposal that could have a major impact on the state’s power sector. The petition, filed by the state’s electricity distribution companies—Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL), Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL), and Andhra Pradesh Central Power Distribution Company Limited (APCPDCL)—is currently under consideration before the Commission under case number OP No. 65 of 2025. The proposal seeks approval for a large-scale energy storage initiative aimed at enhancing grid stability and supporting the integration of renewable energy sources.

The central component of the proposal involves the procurement of a 500 MW/1000 MWh Battery Energy Storage System (BESS) from M/s. NHPC Limited. Energy storage systems like this are crucial for managing the variability of renewable energy generation, particularly from solar and wind projects. These systems store excess electricity generated during periods of high production, such as midday for solar power, and release it during periods of peak demand, like evening hours. By enabling this flexibility, the BESS will help maintain a stable and reliable power supply across Andhra Pradesh, addressing fluctuations in generation and consumption.

To implement the project, the DISCOMs have requested APERC’s approval of two critical agreements: a Battery Energy Storage Sale Agreement (BESSA) and a Battery Energy Storage Purchase Agreement (BESPA), both dated July 10, 2025. Additionally, the petition seeks approval for a long-term tariff for the BESS capacity, which has been determined under Section 63 of the Electricity Act, 2003. The proposed tariff arrangement is intended to be valid for a period of 12 years, providing financial clarity and stability for both the Discoms and the storage system provider.

APERC has opened the petition for public comment, inviting stakeholders, industry participants, and citizens to review the relevant documents and submit their suggestions, objections, or feedback. Interested parties can submit their comments to the Secretary of the Commission either via mail or email. The deadline for submitting public feedback has been set for December 12, 2025. Following this, the Andhra Pradesh DISCOMs will be required to respond to all objections by December 19, 2025. The Commission has also stated that a date for a public hearing on the matter will be announced at a later stage, providing an opportunity for further discussion and consideration of stakeholder inputs.

This initiative reflects Andhra Pradesh’s growing focus on modernizing its power infrastructure and integrating advanced energy storage solutions to support renewable energy growth. By seeking regulatory approval and inviting public participation, APERC is ensuring that the process is transparent and inclusive, allowing stakeholders to contribute to shaping the state’s energy future. The 500 MW/1000 MWh BESS project is expected to play a pivotal role in enhancing grid reliability, optimizing renewable energy utilization, and supporting the state’s long-term energy goals.