Petition of the Electricity Act to procure and sign Power Sale Agreement of 600 MW assured peak power from SJVN Ltd. Renewable Energy Project with Energy Storage System – EQ

Summary:

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## Key Approvals & Numbers

| Parameter | Details |
|———–|———|
| **Petitioner** | BSES Rajdhani Power Ltd. (BRPL) |
| **Power Generator** | SJVN Ltd. (SJVNL) |
| **Project Type** | Renewable Energy (RE) with Energy Storage System (ESS) |
| **Total Project Capacity** | 1500 MW x 4 hours = 6000 MWh |
| **Initially Requested Procurement** | 600 MW assured peak power |
| **Finally Approved Procurement** | **350 MW** (reduced due to allocation to other DISCOMs) |
| **Discovered Tariff** | ₹6.74 per kWh |
| **Trading Margin** | ₹0.07 per kWh |
| **Total Tariff (pre-GST adjustment)** | ₹6.81 per kWh |
| **GST Impact (expected reduction)** | ₹0.10 – ₹0.15 per kWh |
| **Effective Tariff after GST reduction** | ~₹6.64 – ₹6.71 per kWh |
| **Assured Supply Level** | 90% peak hour availability monthly (penalties below this) |
| **Order Date** | April 7, 2026 |

## Business Rationale for Procurement

BRPL submitted the following justifications, which the Commission accepted:

### 1. Demand Growth Projection
BRPL anticipates **5.5% CAGR** in peak load demand up to FY 2036:

| Year | Peak Demand (MW) |
|——|——————|
| FY25 | 3,758 |
| FY30 | 4,912 |
| FY34 | 6,085 |

### 2. Cost Competitiveness vs. Alternatives

| Option | Effective Tariff (₹/kWh) |
|——–|————————-|
| **SJVN Assured Peak Power (this approval)** | **7.43** (pre-GST adj.) |
| SECI BESS Tender (4 hrs, with VGF) | 8.74 |
| SECI Assured Peak Tender (Jan 2025) | 9.26 |
| IEX Peak Hour Power (FY24-25 average) | ~7.60 |

**Savings vs. SECI BESS Tender:** ~₹1.31 per kWh

### 3. SJVN vs. SECI Tender Comparison (Feb 2026)

| Dimension | SJVN FDRE-4 | SECI FDRE-VII |
|———–|————-|—————|
| **Assured Supply Level** | 90% monthly (no tolerance band) | 70% monthly (30% shortfall tolerated), 85% annually |
| **GST applicability** | Reduction (~₹0.10-0.15/kWh) passed through | New rates built into quoted tariff |
| **Effective Tariff to DISCOM** | ₹6.64 (after GST impact) | ₹6.82 |
| **Open Market Risk** | None – 90% fully assured | 20% gap must be procured from open market |

**Key Business Advantage of SJVN:** No exposure to volatile open market prices (IEX peak delivered tariff in FY25 was ₹8.73/kWh).

### 4. Regulatory Compliance Drivers

– **Resource Adequacy Guidelines** (MoP, June 28, 2023)
– **DERC RPO Regulations, 2025** (notified Oct 10, 2025)
– **Renewable Consumption Obligation (RCO)** (MoP notification, Sep 27, 2025)
– **Energy Storage Obligation** compliance

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## Chronology of Events (Business Timeline)

| Date | Event | Business Impact |
|——|——-|—————–|
| Oct 16, 2025 | SJVNL sought BRPL’s consent for FDRE power at ₹6.74/kWh + ₹0.07 margin | Initial offer received |
| Nov 27, 2025 | BRPL gave in-principle consent, subject to DERC approval | Conditional acceptance |
| Dec 4, 2025 | SJVNL confirmed allocation of 600 MW, shared draft PSA | Capacity locked (temporarily) |
| Dec 12, 2025 | BRPL sought DERC in-principle approval | Regulatory process initiated |
| Jan 19, 2026 | BRPL submitted CEA Resource Adequacy Report to DERC | Compliance documentation |
| **Feb 17, 2026** | SJVNL warned: sign PSA or capacity will be reallocated | **Urgency signal** |
| **Mar 20, 2026** | SJVNL informed: only **350 MW** now available (1,150 MW allocated to others) | **Capacity reduction confirmed** |
| Mar 24, 2026 | DERC directed BRPL to file IA with revised position | Regulatory direction |
| **Apr 7, 2026** | DERC approves **350 MW** procurement | **Final approval** |

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