The Chhattisgarh State Power Distribution Company Limited (CSPDCL) has approached the Chhattisgarh State Electricity Regulatory Commission (CSERC) seeking approval and adoption of the tariff discovered through a competitive bidding process for procurement of Battery Energy Storage System (BESS) capacity. The petition has been filed under Sections 63 and 86(1)(b) of the Electricity Act, 2003, with Shreyas Energy 1 Private Limited, a special purpose vehicle of Shreyas Sortex Industries Pvt. Ltd., named as the respondent.
The procurement process stems from operational guidelines issued by the Ministry of Power on June 9, 2025, for providing Viability Gap Funding (VGF) to BESS projects under the Power System Development Fund (PSDF). The initiative aims to strengthen energy storage capacity and support efficient utilisation of thermal generation and transmission infrastructure during non-solar hours and peak demand periods.
Under the programme, the Ministry allocated 30 GWh of BESS capacity across 15 states and NTPC, with financial support of Rs. 5,400 crore. Chhattisgarh was allocated 500 MWh of BESS capacity and became eligible for VGF support of up to Rs. 90 crore.
The guidelines specified that the projects would be developed through tariff-based competitive bidding and would have to follow standard power procurement procedures. The selected projects were also required to achieve commissioning within 18 months from the execution of the contract.
To implement the procurement, CSPDCL received proposals from two central agencies, the Solar Energy Corporation of India (SECI) and NTPC Vidyut Vyapar Nigam Limited (NVVN). SECI offered to serve as the Renewable Energy Implementing Agency for 12 to 15 years and proposed a trading margin of 7 paise per kWh or 0.5% of capacity charges.
NVVN, on the other hand, proposed to act only as the Bid Implementing Agency without levying any trading margin. Its costs would be recovered through standard bid implementation fees from participating and successful bidders.
After evaluating the financial implications, CSPDCL selected NVVN, considering the arrangement more economical for electricity consumers. CSPDCL subsequently issued a Letter of Award to NVVN on July 3, 2025, appointing it as the Bid Implementing Agency.
Following the competitive bidding process, Shreyas Energy 1 Private Limited emerged as the successful bidder. CSPDCL has now approached CSERC for formal adoption of the discovered tariff and approval of the associated contractual arrangements, marking another step toward developing utility-scale energy storage capacity in Chhattisgarh.
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