DERC Approves India's First Commercial Utility-Scale BESS Project Supported by GEAPP
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 be the fastest BESS project to be commissioned, with a record time of 18 - 20 months from conceptualisation to implementation.
May 08, 2024. By Anurima Mondal
This ground-breaking initiative is supported by the Global Energy Alliance for People and Planet (GEAPP’s) concessional loan amounting to 70 percent of the total project cost and is in partnership with IndiGrid and BSES Rajdhani Power Limited (BRPL).
India is a first-mover country in the BESS Consortium, a multi-stakeholder coalition launched by the GEAPP Leadership Council, which is focused on scaling just energy transitions worldwide.
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 be the fastest BESS project to be commissioned, with a record time of 18 - 20 months from conceptualisation to implementation.
Located at a high demand sub-station, the project will improve the power quality and enable 24/7 reliable power in the area for over 12,000 low-income consumers. In collaboration with its alliance partners, GEAPP is targeting 1 GW of BESS commitments in India by 2026, aligning with India's ambitious goal of deploying 47 GW of BESS by 2032.
"The regulatory approval of the BRPL BESS project marks a significant milestone in our efforts to integrate renewable energy sources into the grid and enhance reliability for our consumers. This project exemplifies our commitment to embracing cutting-edge technologies to meet the evolving needs of our customers while advancing towards a cleaner, more sustainable energy future," said a BSES spokesperson.
India's urgent need for BESS integration in the distribution grid is underscored by the country's substantial Variable Renewable Energy (VRE) penetration, which exceeds 12 percent in certain regions. The BRPL BESS project is the first commercial standalone BESS project at the distribution level in India to receive regulatory approval for a capacity tariff and will play a pivotal role in facilitating the uptake of low-cost VRE by the New Delhi Utility (BRPL).
The project's significance extends beyond its innovative tariff model. With a levelised annual tariff of INR 57.6 lakh per MW, nearly 55 percent lower than the previous benchmark (INR 130 lakh/MW/year), the project sets a new standard for BESS affordability in India.
Commenting on the development, Saurabh Kumar, Vice President - India, GEAPP said, "We are proud to support the pioneering BRPL BESS project, which demonstrates the viability of battery energy storage solutions and sets a new standard for affordability in the energy sector. Through our concessional financing and strategic partnerships, we are driving innovation and sustainability in India's energy landscape."
The project SPV - Kilokari BESS Pvt. Ltd will be paid by BRPL through a fixed-capacity tariff (in INR/MW/month terms), on availability basis irrespective of the actual consumption, demonstrating its efficacy, and making it attractive for potential investors. The SPV is owned by IndiGrid and Ampere-hour Energy.
"We are delighted to have achieved the key milestone of regulatory approval for our first utility-scale standalone BESS project in an unprecedented timeframe. BESS is a key focus area for us, recognizing its indispensable role in shaping the future of clean energy in India. We are very happy to partner with BRPL and GEAPP and are committed to deliver this project on committed timelines with their consistent support," commented Harsh Shah, CEO of IndiGrid.
please contact: contact@energetica-india.net.
Kamalakannan Thiruvadi
Regional Executive, South Asia
Digital Twins and Smart Grids: Bentley’s Vision for Efficient Energy Sector in India
Damien Etienne
Co-Founder and CTO
Avalon ST's Nexun Neo: Affordable A++ LED Solar Simulators for India’s Solar Growth
Nehal Gupta
Managing Director
AMU Drives Clean Energy Transition with Tailored EV Financing Solutions
Maurits van Tol
CEO - Catalyst Technologies
Driving Net Zero: How Johnson Matthey is Pioneering Sustainable Solutions Worldwide
Sharat Goyal
Founder
Impact Infracap Bridges Market Gaps for Key Renewable Energy Components