MoP Proposes Amendments to Renewable Energy and BESS Bidding Guidelines

The Ministry of Power (MoP) has circulated draft amendments to the tariff-based competitive bidding guidelines for procurement of electricity from grid-connected renewable energy projects and battery energy storage systems (BESS).

The Ministry has invited comments from stakeholders on the proposed amendments by November 25, 2026.

The proposed amendments cover guidelines for procurement of power from grid-connected solar photovoltaic (PV) projects, wind-solar hybrid projects, firm and dispatchable renewable energy projects with energy storage systems, and procurement and utilisation of BESS as part of generation, transmission and distribution assets, including ancillary services.

In a communication dated November 2026, the Ministry has forwarded the draft amendments to the Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), state governments, state electricity regulatory commissions, public sector undertakings, distribution companies, power exchanges and industry associations for their comments within 15 days, up to November 25, 2026.

One of the proposed changes concerns Clause 1.1.3 of the guidelines for tariff-based competitive bidding for procurement of power from grid-connected solar PV projects. The amended provision states that solar power procurement through competitive bidding may include projects with or without energy storage systems.

It further provides that procurers must comply with Central Government orders and regulations issued by the competent authority mandating the installation of energy storage systems alongside solar PV projects, as well as domestic content requirements applicable to such storage systems.

The draft also proposes that the Request for Selection (RfS) document include suitable provisions to ensure compliance with domestic content requirements for BESS projects in accordance with the relevant Central Government orders.

Another proposed amendment specifies a minimum term of eight years for Battery Energy Storage Purchase Agreements (BESPA), which may be extended depending on procurement requirements.

The Ministry has also proposed changes to the payment security mechanism for BESS projects. Under the revised provision, the Payment Security Fund (PSF) should be sufficient to support at least three months of billing for all projects tied to the fund.

The draft further proposes allowing the intermediary procurer to collect a non-refundable contribution from battery energy storage system developers (BESSDs), subject to a ceiling of INR 5 lakh per MWh, in instalments specified in the RfS document, as one of the options for strengthening the payment security mechanism.

Participation in this contribution mechanism would be optional for BESS developers and must be clearly specified in the RfS. Where developers opt for it, the amount collected, along with accrued interest, would be transferred to the Payment Security Fund established by the Government of India for the respective intermediary procurer.

The proposed amendments are part of the Ministry's efforts to revise the existing competitive bidding framework for renewable energy procurement and energy storage deployment.