JSERC Approves 250 MW FDRE Purchase By Damodar Valley With 25-Year PPA In Jharkhand

The Jharkhand State Electricity Regulatory Commission, in an order dated December 18, 2025, approved a Power Sale Agreement between the Damodar Valley Corporation and the National Hydroelectric Power Corporation Limited. This approval relates to the long-term purchase of 250 MW of firm and dispatchable renewable energy (FDRE) supported by an energy storage system. The decision is seen as an important step towards strengthening renewable energy integration while ensuring a reliable power supply to meet consumer demand.

The case was filed by Damodar Valley Corporation, which approached the Commission seeking approval for the Power Sale Agreement signed with NHPC. NHPC was acting as a Renewable Energy Implementing Agency on behalf of the Government of India. Under this role, NHPC had conducted a tariff-based competitive bidding process to select a developer for the project. Through this transparent bidding process, M/s ACME Solar Holdings Limited emerged as the successful bidder.

The selected project is located at Kharnai, Rawatbhata in Rajasthan. It involves the development of a 250 MW solar power plant along with a large Battery Energy Storage System. The BESS capacity is 250 MW with an energy storage size of 1,150 MWh. The combination of solar generation with battery storage enables the supply of firm and dispatchable renewable energy, which can be scheduled and supplied even during non-solar hours. The power generated from this project will be sold onward to Damodar Valley Corporation under the approved Power Sale Agreement.

During the proceedings, DVC explained the benefits of entering into this arrangement. One of the key reasons highlighted was the need to meet Renewable Purchase Obligation targets in both Jharkhand and West Bengal. As a power utility supplying electricity across multiple regions, DVC is required to comply with RPO norms, and the procurement of renewable energy coupled with storage supports this requirement. The utility also pointed out that the firm and dispatchable nature of the power would help manage peak demand periods more effectively and improve grid reliability.

Another important benefit discussed during the hearing was the exemption from Inter-State Transmission System charges. The energy procured under this arrangement qualifies for ISTS charge exemption as per applicable Ministry of Power guidelines and Central Electricity Regulatory Commission regulations. This exemption helps reduce the overall cost of power procurement and makes renewable energy with storage more competitive.

The Commission examined the petition in light of the provisions of the Electricity Act, 2003. Sections 86(1)(b) and 86(1)(e) empower the State Commission to regulate power procurement by distribution licensees and to promote renewable sources of energy. The Commission also referred to its own regulations, which require distribution licensees to obtain prior approval for any power procurement arrangement. After reviewing the submissions and documents placed on record, the Commission found that the requirements under the law had been fulfilled.

The Commission noted that the tariff for the project had been discovered through a competitive bidding process conducted under Section 63 of the Electricity Act. Since the process was transparent and followed the prescribed guidelines, the Commission did not find any reason to interfere with the discovered tariff. The approved tariff stands at Rs. 4.63 per unit. This tariff includes a trading margin of Rs. 0.07 per unit payable to NHPC.

The Power Sale Agreement will remain valid for a period of 25 years from the scheduled commissioning date of the project. The representative of NHPC confirmed before the Commission that there was no objection to the petition filed by DVC. After considering all aspects, the Commission allowed the petition and disposed of the case. The order marks a significant development in the adoption of dispatchable renewable energy supported by storage in the region’s power mix.