JSW Energy Appeals CERC’s Rejection of BESS Tariff to APTEL

JSW Energy, through its subsidiary JSW Renew Energy Five, has filed an appeal with the Appellate Tribunal for Electricity (APTEL) to contest the recent decision by the Central Electricity Regulatory Commission (CERC) that rejected the tariff for JSW’s Battery Energy Storage System (BESS), according to various news reports.

Objective of Appeal

In its appeal, JSW Energy seeks the reversal of the previous decision, the adoption of the tariff discovered in the August 2022 e-Reverse Auction, and directions for the timely execution of remaining agreements. Earlier this month, CERC rejected the tariff discovered for the first-ever grid-scale BESS awarded to JSW Energy by the Solar Energy Corporation of India (SECI). In response, JSW Energy has challenged the CERC order with APTEL.

The project, which was awarded to JSW Energy in August 2022, quoted the lowest tariff of Rs 10,88,917 per MW/month for two projects totalling 1,000 megawatts (MW).

Grounds for Challenge

JSW Energy’s appeal contests the CERC’s decision on multiple grounds, including that tariff evaluation should account only for market conditions at the time of the bid submission in August 2022. The company also highlights delays in the project timeline caused by procedural and regulatory hurdles.

CERC’s January 2nd order cited two key reasons for rejecting the tariff: delays in signing the power supply and purchase agreements (PSA and PPA), and the reduction in BESS prices over the past two years. In its appeal, JSW Energy further asserts that it has already made substantial investments in the project, including procuring all necessary equipment for Unit 1, as well as acquiring land and securing connectivity for the project.

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