Post by VYQON Research Private Limited

Regulatory Order | TGERC Approves Telangana's First 1,500 MWh Utility-Scale BESS; Coal India Limited + Sarus; ₹2.98–3.14 Lakh/MW/Month; Trading Margin Capped at 0.5% of Capacity Charges The Telangana Electricity Regulatory Commission (TGERC) has approved the state's first utility-scale standalone Battery Energy Storage System project for a total storage capacity of 1,500 MWh, resolving two petitions related to tariff adoption and procurement approval. Key details: → Project details: procured under the Ministry of Power Govt of India's Viability Gap Funding scheme via the Power System Development Fund (PSDF); TGGENCO was appointed nodal agency; 16 bidders participated in the e-Reverse Auction on Bharat Portal; two successful developers: Coal India Limited (CIL) for the Choutuppal project at ₹3,14,000/MW/month; Sarus Infrastructures Private Limited for the Maheshwaram project at ₹2,98,000/MW/month → Model: BOO (Build-Own-Operate) for 15 years; TGGENCO signs Battery Energy Storage Purchase Agreements (BESPA) with developers; TGGENCO signs Battery Energy Storage Sale Agreements (BESSA) with Telangana DISCOMs → BESS specifications: 4-hour discharge (1 complete charge-discharge cycle per day); minimum annual availability 95%; AC-to-AC round-trip efficiency ≥85% monthly; commissioning within 18 months from BESPA effective date; VGF of ₹18 lakh/MWh → Trading margin cap: TGERC capped TGGENCO's trading margin at 0.5% of the applicable capacity charges in line with the Ministry of Power Govt of India's guidelines for capacity-based BESS procurement; this reflects the position that standalone BESS is primarily a capacity service, not energy trading → Stakeholder concerns at the June 18, 2026 public hearing included higher tariffs vs Andhra Pradesh (where APTRANSCO discovered ₹1.48 lakh/MW/month for 2-hour systems); Telangana's 4-hour discharge duration requires larger battery banks and higher capital costs than the 2-hour systems procured in AP, Karnataka, and Gujarat → Significance: Telangana had 0 MW of commissioned grid-scale standalone BESS as of early 2026; 1,500 MWh across two locations (Choutuppal, Maheshwaram) will enable daytime solar surplus storage and peak power dispatch for Telangana's DISCOMs; the state had installed 6.5 GW of solar by end-FY26 with significant curtailment risk 📌 Full article: https://lnkd.in/eq6Dwq27 #TGERC #Telangana #BESS #1500MWh #BatteryStorage #GridStorage #VGF #CoalIndia #RegulatoryOrder