CERC Rejects High Tariff for Standalone BESS Project, Citing Market Trends

The Central Electricity Regulatory Commission (CERC) refused to approve a tariff for JSW’s standalone Battery Energy Storage System (BESS) project, which was discovered through competitive bidding. The tariff was deemed unreasonably high compared to market trends, as newer tenders reported lower rates. 

The delay in executing the Battery Energy Storage Purchase Agreement (BESPA), though not JSW's fault, caused a mismatch between the quoted tariff and market realities. CERC emphasized consumer interests, rejecting the tariff as fact-specific.

This decision highlights regulatory scrutiny of outdated tariffs while urging tendering authorities to address delays proactively.

Questions now arise about liability among JSW, Solar Energy Corporation of India Limited (SECI), and Gujarat Urja Vikas Nigam Limited (GUVNL), with potential legal and financial implications, reflecting the complexity of evolving energy project dynamics.