The cost of Battery Energy Storage System (BESS) discovered through tariff based competitive bidding during 2022-23 was about ` 10.18 / kWh, if the storage is used for 2 cycles daily. The cost of BESS discovered through competitive bidding in the recent past has substantially reduced to about ` 2.1 / kWh without VGF, if the storage is used for 2 cycles daily. However, based on the market trend, it is expected that BESS will be utilised for 1.5 cycles per day which corresponds to storage cost of ` 2.8 / kWh. Based on the recent tenders, average rate of electricity from solar projects is in the range of ` 2.5 / kWh.
Waiver of Inter-State Transmission System (ISTS) charges is provided for 12 years for co-located BESS projects to be commissioned by June 2028. For non-co-located BESS projects, ISTS charges waiver is granted for projects that were commissioned before June 2025 and thereafter, waiver will be reduced annually in graded steps of 25%.
