BSES Rajdhani Power’s new 20 MW/40 MWh project is India’s first standalone utility-scale battery energy storage system to receive regulatory approval under Section 63 of the Indian Electricity Act, 2003. The project is supported by a concessional loan from the Global Energy Alliance for People and Planet (GEAPP).
The Delhi Electricity Regulatory Commission (DERC) has approved India’s first commercial standalone battery energy storage system (BESS). The project is being developed by BSES Rajdhani Power (BRPL) in collaboration with IndiGrid and the Global Energy Alliance for People and Planet’s (GEAPP). It is supported by GEAPP’s concessional loan, which covers 70% of the total project costs.
The approved project, a 20 MW/40 MWh BESS, will be strategically installed at BRPL’s 33/11 kV Kilokari substation and is on track to achieve commissioning in a record time of 18 to 20 months – reportedly the fastest for a BESS project.
The project, located at a high-demand substation, will improve power quality and provide 24/7 reliable power in the area to more than 12,000 low-income consumers.
Working with its alliance partners, GEAPP aims to achieve 1 GW of BESS commitments in India by 2026, in line with India’s ambitious target of deploying 47 GW of BESS by 2032.
“Regulatory approval of the BRPL BESS project marks an important milestone in our efforts to integrate renewable energy sources into the grid and increase reliability for our consumers,” a BSES spokesperson said.
India’s urgent need for BESS integration into the distribution grid is underscored by the country’s substantial variable renewable energy (VRE) penetration, which exceeds 12% in some regions.
The BRPL BESS project is the first commercial standalone distribution level BESS project in India to receive regulatory approval for a capacity tariff. It will play a crucial role in facilitating the introduction of low-cost VRE by the New Delhi Utility (BRPL).
The project sets a new benchmark for BESS affordability in India with a levelized annual rate that is almost 55% lower than the previous benchmark.
“The BRPL BESS project has a comprehensive Monitoring, Evaluation and Learning (MEL) plan, aimed at sharing key insights and lessons learned with other Indian DISCOMs, state regulators and energy sector stakeholders in India and across Asia, Africa, Latin Americas and the Caribbean,” said GEAPP. “This knowledge sharing initiative underlines GEAPP’s commitment to driving innovation and scalability in the energy sector in India and emerging markets globally.”
GEAPP’s role in the project goes beyond just financing.
“Through technical and commercial expertise, GEAPP has worked closely with BRPL to demonstrate the value of BESS at the discom level,” GEAPP said. “The concessional loan provided by GEAPP guarantees a final rate that is attractive to regulators and paves the way for future BESS projects in the country.”
BRPL will pay a fixed capacity tariff to the project’s special purpose vehicle (SPV), Kilokari BESS. The SPV is owned by IndiGrid and Ampere-hour Energy.
“The business model of this project demonstrates the viability of third-party BESS solutions supported by concessional financing,” GEAPP said. “This model, combined with rigorous monitoring and knowledge-sharing mechanisms, provides a blueprint for the global deployment of sustainable energy, which can be shared with interested countries, developers and other partners through the BESS consortium.”
GEAPP is an alliance of philanthropy, governments in emerging and developed economies, and technology, policy and financing partners. It aims to help low- and middle-income countries transition to a growth-oriented clean energy model that accelerates universal energy access and inclusive economic growth, while supporting the global community in achieving critical climate goals over the next decade .
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