The Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved a tariff of ₹2.98 per kWh for a standalone 125 MW/500 MWh battery energy storage system (BESS). According to SolarQuarter, the order is dated 1 October 2026. It lets the state utility, Chhattisgarh State Power Distribution Company Limited (CSPDCL), go ahead with the contracted storage capacity.
What the numbers mean
The 125 MW figure is how much power the battery can deliver at one time. The 500 MWh figure is how much energy it can hold. At full output, the system could therefore supply the grid for about four hours. That is a simple calculation from the two figures, not a number stated in the order.
The tariff was found through a reverse auction held on 11 March 2026. Shreyas Energy 1 Private Limited, a special purpose vehicle of Shreyas Sortex Industries Private Limited, quoted the lowest price, SolarQuarter reported when CSPDCL sought the regulator’s approval. NTPC Vidyut Vyapar Nigam Limited (NVVNL) ran the bidding. It issued the request for selection on 1 December 2025, and 13 developers took part.
The regulator observed that deploying battery storage would help meet peak power demand, Mercom India reported.
Central support behind the project
The project falls under the Ministry of Power’s viability gap funding (VGF) scheme, which is backed by the Power System Development Fund. Guidelines issued on 9 June 2025 set aside ₹5,400 crore to develop 30 GWh of battery storage across 15 states and NTPC. Chhattisgarh was allocated 500 MWh and is eligible for ₹90 crore of that support, according to the filings reported by SolarQuarter.
The scheme aims to make better use of thermal generation and transmission infrastructure during non-solar hours and peak demand. Under the guidelines, as SolarQuarter reported, selected projects must be commissioned within 18 months of the contract being executed.
What this means for India
Batteries that store daytime solar power for the evening peak are becoming part of routine state power planning. Chhattisgarh’s price can be compared with another VGF-free result: Ceigall India won 50 MW in a Punjab auction at ₹2.99/kWh without VGF support, according to Energetica India. Chhattisgarh’s price comes with central funding, so the two are not like-for-like. Other states have quoted tariffs per MW per month, which cannot be compared directly with a per-kWh figure.
What happens next
With the tariff adopted, the project can move towards contracting and construction. The developer will build, own and operate the system, as stated in the tender details. The winning bidder must furnish a performance bank guarantee of ₹22,00,000 per MW before signing the battery energy storage purchase agreement with CSPDCL.
The state regulator is also looking at storage more broadly. It has proposed that new distributed renewable projects above 5 MW that begin commercial operation on or after 1 April 2027 should include battery storage, Mercom India reported. The proposal has not yet been finalised.
The order is listed among recent orders on the CSERC website.
Sources
- Chhattisgarh Approves ₹2.98 Tariff for 125 MW BESS Project
- Chhattisgarh Regulator Adopts Tariff for 500 MWh Battery Storage Project – Mercom India
- CSPDCL Seeks CSERC Approval For INR2.98/kWh Tariff For 125 MW/500 MWh BESS Project In Chhattisgarh
- CSPDCL Seeks CSERC Approval For Tariff Of 500 MWh BESS Project In Chhattisgarh
- NVVN Issues Major Tender For 125 MW / 500 MWh BESS Project To Boost Grid Stability In Chhattisgarh
- Chhattisgarh State Electricity Regulatory Commission
- Chhattisgarh Proposes Mandatory BESS for Renewable Projects Above 5 MW – Mercom India
- Ceigall India Wins PSPCL’s Auction to Develop 150 MW Standalone BESS in Punjab
