CTUIL Proposes New Guidelines for BESS Land Use and Financial Closure Compliance

The Central Transmission Utility of India Ltd. (CTUIL) has scheduled a stakeholders consultation meeting to discuss and finalise the benchmarking of land requirements for Battery Energy Storage System (BESS) projects.

As per the notice released, the meeting will also cover the procedures and required documents that applicants must submit to demonstrate financial closure under Regulation 11A of the GNA Regulations, 2022. This important session will be held at CTUIL’s corporate office, with the exact date and time to be announced soon.

Currently, there is no prescribed minimum land requirement for standalone BESS projects. However, to streamline connectivity applications received under the standalone ESS category, CTUIL has proposed a benchmark of 3 acres per 100 MWh based on data collected from various developers. Consequently, applicants will be required to submit land documents corresponding to at least 1.5 acres per 100 MWh, considering a 50 percent land requirement, along with their connectivity applications.

Regarding financial closure, the notice said that  the applicants including Renewable Energy Generating Stations (REGS) excluding hydro, Energy Storage Systems (ESS) except Pumped Storage Plants, and renewable power park developers must achieve financial closure no later than six months prior to the scheduled commercial operation date or the start date of connectivity, whichever is later. Extensions for achieving this milestone due to delays in the Scheduled Commercial Operation Date (SCOD) will be limited to a maximum of 12 months.

To demonstrate financial closure, applicants are required to submit several documents within 15 days of achievement. These include an affidavit confirming financial closure, board resolutions authorising the submission, and proof of funding arrangements depending on the source, whether through loans, equity, grants, or other means. CTUIL will scrutinise these documents fortnightly and communicate any deficiencies, which applicants must address within seven working days to avoid delays.

Additionally, CTUIL has proposed project cost benchmarks to be used as a reference while submitting financial closure undertakings. These costs are INR 7 crore per MW for wind projects, INR 5 crore per MW for solar, INR 4 crore per MW for BESS, and INR. 0.35 crore per MW for power parks. Undertakings indicating costs below these thresholds will not be accepted for compliance with Regulation 11A.