 "JSW Energy challenges CERC order rejecting BESS project tariff discovery")
JSW Energy, through its subsidiary JSW Renew Energy Five, has filed an appeal with the Appellate Tribunal for Electricity (APTEL) challenging the recent decision to reject the tariff for JSW’S Battery Energy Storage System (BESS), said people in the know.
JSW Energy, in its appeal, is seeking reversal of the earlier order, adoption of the tariff discovered in the August 2022 e-Reverse Auction, and directions ensuring timely execution of remaining agreements, said sources.
At the start of this month, Central Electricity Regulatory Commission (CERC) rejected the tariff discovered in the first ever grid scale BESS awarded to JSW Energy, and offered by Solar Energy Corporation of India (SECI). JSW Energy, through its subsidiary, has now filed an appeal with the APTEL challenging the CERC order, sources said. An email query sent to JSW Energy on Monday remained unanswered.
The project was awarded to JSW Energy in August 2022, quoting the lowest tariff of Rs 10,88,917/Mw/month for two projects totalling 1000 megawatt (MW).
JSW Energy is challenging the CERC order, on multiple counts, including that tariff evaluation should only consider market conditions prevailing at the time of the bid submission, which was August 2022, sources noted. Other points made in the appeal include, that delays in the project timeline were caused by procedural and regulatory hurdles.
CERC, which is a quasi-judicial apex regulator for the sector, for its January 2nd dated order had cited “delay in signing power supply and purchase agreements (PSA and PPA)” and reduction in BESS prices over the last two years, as the reasons for rejecting the tariff.
JSW Energy is noted to have further argued in the appeal, that it has already invested significant capital in the project, including procuring all of the required equipment for Unit one, amongst other land and connectivity investments.