The Delhi Electricity Regulatory Commission (DERC) has given in-principle approval to BSES Rajdhani Power Ltd. (BRPL) to begin the competitive bidding process for setting up a large-scale Battery Energy Storage System (BESS) in Delhi. The approval was issued on June 18, 2026, and represents a significant step toward strengthening the capital’s power infrastructure while supporting the integration of renewable energy into the grid.
The proposed project will have a total capacity of 97.5 MW / 195 MWh and will be installed across five important grid stations located in South and West Delhi. These include the 66/11 kV G4 Dwarka station with 5 MW / 10 MWh capacity, G3 PPK Bindapur with 15 MW / 30 MWh, Hari Nagar with 7.5 MW / 15 MWh, Sagarpur with 30 MW / 60 MWh, and DTL Pappankala 2 with 40 MW / 80 MWh.
According to BRPL, the battery storage project is aimed at supporting the growing penetration of renewable energy and addressing increasing electricity demand in the identified areas. The company noted that these grid zones have recorded an annual peak demand growth rate of nearly 8% over the last three years. The BESS will function as a two-hour dispatchable asset and is designed to operate two cycles per day, helping reduce network congestion during peak demand periods, especially in summer.
A major feature of the project is its zero-capital expenditure model for BRPL. Since the utility will not make any direct investment in the infrastructure, the financial benefits generated from the system are expected to be passed on to consumers through lower power purchase costs. BRPL estimates that the project could generate levelized benefits of around INR 88.35 crore annually over its 12-year operational life.
The battery storage system will also provide several operational advantages. It will support the grid during evening hours when solar power generation declines and electricity demand rises. In addition, it can offer emergency backup support through islanding capabilities, helping maintain power supply to critical infrastructure during transmission disruptions. The system is also expected to reduce dependence on costly gas-based power generation and ease pressure on Delhi’s transmission network.
While approving the proposal, DERC stated that final tariff adoption will depend on a detailed assessment of the rates discovered through the bidding process and prevailing market conditions. BRPL will work with The Energy and Resources Institute (TERI), which has been appointed as the bid manager for the project.
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