The Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved the adoption of a tariff of ₹2.98 per kWh for procurement of power from a standalone 125 MW/500 MWh Battery Energy Storage System (BESS) project in Chhattisgarh. The approval was issued through an order dated October 1, 2026, allowing Chhattisgarh State Power Distribution Company Limited (CSPDCL) to proceed with the contracted storage capacity.
The project is being developed under the Ministry of Power’s Viability Gap Funding (VGF) scheme supported through the Power System Development Fund (PSDF). The scheme targets the development of 30 GWh of battery storage capacity across India and provides financial support of ₹5,400 crore. Chhattisgarh was allocated 500 MWh of storage capacity under the programme and is eligible for ₹90 crore in VGF assistance.
The proposed BESS is intended to strengthen the state’s power system by supporting grid stability and meeting peak electricity demand. It will also help optimize the use of renewable energy and reduce the need for operational backing down of thermal power generation.
For implementing the procurement process, CSPDCL considered Solar Energy Corporation of India Limited (SECI) and NTPC Vidyut Vyapar Nigam Limited (NVVNL) as potential Bid Processing Coordinators. CSPDCL selected NVVNL to manage the competitive bidding process.
NVVNL issued a Request for Selection (RfS) on December 1, 2025, for procurement of power from a State Transmission Utility (STU)-connected standalone energy storage facility. The competitive bidding process attracted participation from 13 prospective developers.
After completion of techno-commercial evaluation, a reverse auction was conducted on March 11, 2026. M/s Shreyas Energy 1 Private Limited emerged as the lowest bidder by quoting a tariff of ₹2.98 per kWh. The company is a Special Purpose Vehicle established by M/s Shreyas Sortex Industries Private Limited.
Based on NVVNL’s recommendations, CSPDCL issued a Letter of Award to Shreyas Energy 1 Private Limited on April 7, 2026. NVVNL later issued a compliance certificate confirming that the bidding process had been conducted in accordance with the applicable central guidelines and prescribed tendering procedures.
CSPDCL and Shreyas Energy 1 Private Limited subsequently signed a Battery Energy Storage Purchase Agreement/Power Purchase Agreement (BESPA/PPA) on May 7, 2026.
CSPDCL approached CSERC through Petition No. 81 of 2026 under Sections 63 and 86(1)(b) of the Electricity Act, 2003, seeking adoption of the discovered tariff and approval of the executed agreement. Following technical validation and a public hearing held on September 2, 2026, the Commission approved the tariff and agreement. No objections were raised by stakeholders during the proceedings.
Under the applicable VGF scheme guidelines, the selected developer is required to commission the 125 MW/500 MWh BESS project within 18 months from the date of execution of the contract.
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