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 competitive bidding for a 125 MW/500 MWh standalone Battery Energy Storage System (BESS) project.
The project was awarded to Shreyas Energy 1 Private Limited, a special purpose vehicle of Shreyas Sortex Industries Private Limited, after a competitive bidding process. The company quoted a tariff of Rs. 2.98 per kWh in the reverse auction held on March 11, 2026, emerging as the lowest bidder.
The project originates from the Ministry of Power’s guidelines issued on June 9, 2025, under the Viability Gap Funding (VGF) scheme supported by the Power System Development Fund (PSDF). The central scheme provides Rs. 5,400 crore in financial assistance for developing 30 GWh of BESS capacity across fifteen states and NTPC. Chhattisgarh was allocated 500 MWh of storage capacity along with Rs. 90 crore in VGF support.
To facilitate implementation, CSPDCL considered proposals from central agencies. Solar Energy Corporation of India Limited (SECI) offered to undertake the project as implementing agency but proposed a trading margin of 7 paise per kWh or 0.5% of capacity charges. Meanwhile, NTPC Vidyut Vyapar Nigam Limited (NVVNL) offered to manage the bidding process without charging a trading margin. CSPDCL therefore appointed NVVNL as the Bid Processing Coordinator on July 3, 2025.
NVVNL issued the Request for Selection (RfS) on December 1, 2025. Thirteen bidders participated, with bids opened on February 13, 2026. During the techno-commercial evaluation, DB Power BESS Storage Limited, which had submitted the highest bid, was disqualified under the applicable procedures. The reverse auction subsequently resulted in Shreyas Energy 1 emerging as the successful bidder.
Following NVVNL’s recommendation on March 16, 2026, CSPDCL issued the Letter of Award on April 7, 2026. A 15-year Battery Energy Storage Purchase Agreement (BESPA) was signed between CSPDCL and Shreyas Energy 1 on May 7, 2026.
The project will be developed on a Build-Own-Operate (BOO) basis at the 220 kV Khedamara Substation, with commissioning scheduled within 18 months from the date of the agreement.
CSPDCL has urged CSERC to adopt the discovered tariff under Section 63 of the Electricity Act, 2003. The utility said the project will strengthen grid balancing, support peak demand management, and facilitate greater integration of renewable energy into Chhattisgarh’s power system.
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