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					</table><p>The Delhi Electricity Regulatory Commission (<a href="https://www.derc.gov.in/" target="_blank" rel="noopener">DERC</a>) has approved <a href="https://www.bsesdelhi.com/web/bses" target="_blank" rel="noopener">BSES Rajdhani Power</a>’s petition to issue a tender for a 195 MWh battery energy storage system at the 66/11 kV Harinagar, Sagarpur, Delhi Transco Pappankala 2, Bindapur, and G4 Dwarka grid substations.</p>
<p><strong>Background</strong></p>
<p>BSES Rajdhani Power, a distribution company in Delhi, proposed to install a 97.5 MW/195 MWh battery storage system at the 66/11 kV grid stations, with an annual cycle of 622.</p>
<p>Apart from improving grid stability, the project is expected to deliver an annual economic benefit of ₹883.5 million (~$9.3 million) over the 12-year project life, considering additional value streams such as energy arbitrage, ancillary services, and improved grid reliability.</p>
<p>BSES Rajdhani has already <a href="https://www.mercomindia.com/delhi-regulator-greenlights-energy-storage-project" target="_blank" rel="noopener">commissioned</a> a 20 MW/40 MWh battery storage system at the 33/11 kV Kilokari grid, which it says has begun to improve operational and commercial performance.</p>
<p>The petitioner said that the project will significantly enhance grid reliability, which has experienced an annual peak-demand compound annual growth rate of ~8% over the past three years.</p>
<p>The project is expected to serve 266,060 consumers, reduce power procurement costs, and provide ramping support to address generation demand imbalances. It will also serve as a peaking resource to minimize reliance on costly gas-based power projects,  thereby reducing fixed and variable power costs.</p>
<p>The battery storage project would help meet the DISCOM’s minimum firm capacity procurement requirement under the long-term national resource adequacy plan.</p>
<p>The petitioner has estimated a single-part tariff of ₹5 million (~$52,757)/MW/year for the battery storage system at the grid substations.</p>
<p>It added that the battery storage system can provide backup power to support three critical stations , and provide relief to upstream Delhi transco feeders and the grid sub-stations.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>Noting that the battery storage system offers several financial benefits to the DISCOM and can generate multiple revenue streams, the Commission gave in-principle approval for the battery storage project.</p>
<p>It said the petitioner must justify financial benefits at the tariff adoption stage, considering discovered prices, projected peak-hour rates, charging rates, and volatility over 12 years.</p>
<p>The Commission directed the DISCOM to initiate the competitive bidding process for the project and seek adoption of the discovered tariff.</p>
<p>It also allowed the amendment in its earlier petition to replace the typographical error of 33/11 kV and to substitute it with 66/11 kV.</p>
<p>According to Mercom India Research’s Q1 2026 India’s Energy Storage Landscape Report, India <a href="https://www.mercomindia.com/india-adds-4-6-gwh-battery-energy-storage-capacity-q1-2026" target="_blank" rel="noopener">added</a> 4.6 GWh of battery energy storage capacity in the first quarter of 2026, a 941% increase from 442.7 MWh added in Q4 2025.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


Delhi Regulator Directs DISCOM to Tender 195 MWh Battery Storage Project


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					</table><p>The Appellate Tribunal for Electricity (<a href="https://www.aptel.gov.in/en" target="_blank" rel="noopener">APTEL</a>) has set aside the penalties imposed by the Delhi Electricity Regulatory Commission (DERC) on BSES Yamuna Power and BSES Rajdhani Power for failing to meet their renewable purchase obligations (RPO) during the financial years 2012–13, 2013–14, and 2014–15.</p>
<p>The Tribunal held that while the appellants were liable to be penalized for non-compliance, the penalties imposed were wholly disproportionate. Instead of the daily penalties running into crores, APTEL fixed a token penalty of ₹5,000 (~$57) for each of the three financial years in question.</p>
<p><strong>Background </strong></p>
<p>On September 18, 2019, DERC held that the two BSES distribution companies (DISCOM) were in default of their RPO. As a consequence, the Commission imposed penalties that were calculated at the maximum rate provided under the law, ₹5,000 (~$57) per day of continuing default.</p>
<p>The appellants challenged this order before APTEL. They argued that their failure to comply with RPO during those years was not deliberate but the result of severe financial stress. They contended that the tariffs determined by the Commission in those years were not cost-reflective, pushing the DISCOMs into a situation where they could not even meet payment obligations to generators, let alone procure renewable power.</p>
<p>They submitted that they have since overachieved their RPO in 2023–24 and that this surplus should be adjusted against the shortfall of earlier years.</p>
<p>Countering these arguments, DERC maintained that <a href="https://www.mercomindia.com/delhi-power-purchase-obligation-fy26">RPOs</a> are mandatory and that financial hardship cannot justify non-compliance. The Commission relied on the Supreme Court&#8217;s judgment in Hindustan Zinc v. RERC in 2015, which held that statutory environmental obligations must be fulfilled irrespective of economic considerations. The Commission also referred to an APTEL decision in 2013, which had cautioned regulators against diluting compliance requirements.</p>
<p><strong>Tribunal’s Analysis </strong></p>
<p>APTEL, while acknowledging that RPO compliance is mandatory, pointed out that the maximum penalty must be ₹100,000 (~$1,135) for each contravention and an additional ₹6,000 (~$69)/day for continuing contravention. It does not lay down any minimum penalty.</p>
<p>In APTEL&#8217;s view, this meant that the Commission had discretion to determine the quantum of penalty based on the circumstances of the case. It said financial hardship cannot be used as an excuse for non-compliance. Yet it held that such hardship could certainly be considered as a mitigating factor while determining the penalty.</p>
<p>The Tribunal observed that the Commission had failed to take into account its own past statutory advice to the Government of Delhi in 2010 and 2013, where it had admitted that tariffs were not cost-reflective and had resulted in the accumulation of large regulatory assets. These regulatory assets forced the DISCOMs into continuous borrowing and placed them under financial stress.</p>
<p>It noted that, even as late as August 2025, the Supreme Court had <a href="https://www.mercomindia.com/supreme-court-orders-pay-dues-discoms-four-years">criticized</a> regulatory commissions for failing to adopt cost-reflective tariffs and for allowing regulatory assets to grow unchecked. The apex court had directed that such assets must not exceed 3% of the annual revenue requirement and must be liquidated within three years.</p>
<p>The Tribunal held that the financial difficulties of the BSES DISCOMs were not of their own making but were largely attributable to regulatory decisions.</p>
<p>APTEL found it unjustified that the Commission proceeded to impose the maximum penalties without any reasoning or consideration of these extenuating circumstances. Such an approach, in its view, was harsh and amounted to a miscarriage of justice. It held that while the DISCOMs could not escape liability altogether, they should not be burdened with penalties disproportionate to the default.</p>
<p>Setting aside the Commission’s order, it held each of the appellants liable only to a token penalty of ₹5,000 (~$57) for each of the three financial years 2012–13, 2013–14, and 2014–15.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>


APTEL Reduces Heavy Penalty on Delhi DISCOMs for RPO Non-Compliance


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					</table><p>New Delhi-based electricity distribution services company BSES Rajdhani Power (<a href="https://www.bsesdelhi.com/web/brpl" target="_blank" rel="noopener">BRPL</a>) has partnered with energy storage and software company <a href="https://sheru.se/" target="_blank" rel="noopener">Sheru</a> to develop a vehicle-to-grid station with a bidirectional battery swapping station to support BRPL’s peak power demand.</p>
<p>The station will also provide swappable batteries for electric 2-and-3-wheelers and rickshaws.</p>
<p>The partnership also aims to help ease the pressure on power demand while strengthening the power grid.</p>
<p>Sheru provides cloud storage solutions by aggregating idle battery capacity to create a virtual energy storage platform.</p>
<p>COO of Sheru Shikhar Sharma said, “Sheru supplies cutting-edge solutions for the power sector. In the relationship with BSES, we are helping secure round-the-clock power from renewable energy sources. Standalone battery storage involves large capital expenditure (CAPEX). Sheru’s novel solution is to use the idle battery space of electric vehicles. This solves the CAPEX problem for BSES while providing income to EV and battery owners.”</p>
<p>Sharing further details on the partnership, a BRPL representative said, &#8220;Utilizing the battery capacity of swapping stations as a distributed energy resource installed across the distribution area to support the grid during peak times and maximize charging of batteries through the integration of renewable energy or during off-peak power periods will build a sustainable model for EV charging. We are happy to collaborate with Sheru and hope to extract valuable insights in supporting our grid ancillary functions.”</p>
<p>Sheru was <a href="https://www.mercomindia.com/minionlabs-wins-mercom-indias-startup-pitch-competition" target="_blank" rel="noopener">one</a> of the nine finalists in Mercom’s First Startup Pitch Competition for Cleantech Companies, held recently during the Mercom India Renewables Summit.</p>
<p>In July last year, Delhi’s Transport Department <a href="https://www.mercomindia.com/aggregators-in-delhi-must-transition-to-all-electric-fleets" target="_blank" rel="noopener">ordered</a> all ride-hailing and delivery aggregators in the National Capital Territory to switch their entire fleet to electric by April 1, 2030.</p>
<p>Early last year, NITI Aayog <a href="https://www.mercomindia.com/draft-battery-swapping-policy" target="_blank" rel="noopener">issued</a> the draft battery-swapping policy addressing the key technical, regulatory, institutional, and financing challenges to help India develop battery-swapping ecosystems to unlock the large-scale adoption of battery-swapping.</p>


Sheru’s Vehicle-to-Grid Station to Support Delhi DISCOM’s Peak Power Demand

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