MPERC grants in-principle approval to MPPMCL for 500 MW/1000 MWh additional BESS capacity (tolling tariff, InSTS-connected), over and above the 250 MW/500 MWh already approved in Petition 33/2025
Filing of Petition under section 86(1) of the Electricity Act, 2003 read with Regulation 4.22 of Madhya Pradesh Electricity Regulatory Commission (Power Purchase and Procurement Process) Regulations, 2023 {RG-19(II) of 2023} dated 17th February 2023 and Regulation 16.1 of Madhya Pradesh Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2024 (RG-19(III) of 2024} dated 8th March 2024 for Approval for Procurement of Battery Energy Storage Capacity of 750 MW/1500 MWh (2 cycles) on a tolling tariff model connected to InSTS Network. (Petitioner: 1) Managing Director, M
MPPMCL sought approval under Section 86(1) of the Electricity Act and Regulation 16.1 of MPERC RA Framework 2024 for 750 MW/1500 MWh BESS capacity on a tolling tariff model to meet Energy Storage Obligation (ESO) targets and utilize Rs 18 lakh/MWh VGF allocated by MoP under PSDF for 1500 MWh capacity in MP. On Commission's query at the 30.09.2025 hearing, MPPMCL clarified via affidavit dated 06.10.2025 that it actually sought 500 MW/1000 MWh as additional capacity, over and above 250 MW/500 MWh already approved in Petition 33/2025, since the 1000 MW/2000 MWh complementarity BESS tie-up with UPPCL (also approved in Petition 33/2025) requires separate CERC and other approvals that may take time, risking the 9-month BESPA signing deadline under VGF guidelines.
- Accorded in-principle approval for 500 MW/1000 MWh (2 cycles) BESS capacity on tolling tariff model connected to InSTS network, additional to 250 MW/500 MWh already approved in Petition 33/2025
- Tariff to be discovered through tariff-based competitive bidding conducted by MPPMCL as per MoP Guidelines dated 10.03.2022 (as amended)
- Noted that even after this addition, a significant ESO deficit remains (1,844 MUs in FY27-28 rising to 2,273 MUs in FY29-30)
- Accepted MPPMCL's ESO compliance computation showing only 45% of ESO target achieved by FY2029-30 despite this capacity addition
- Directed/accepted that MPPMCL will approach the Commission separately for additional capacity to bridge the remaining ESO gap
- Petition disposed of with this in-principle approval
- MPPMCL to conduct tariff-based competitive bidding for the 500 MW/1000 MWh BESS capacity per MoP's March 2022 Guidelines and amendments
- MPPMCL to execute BESPA within 9 months of VGF Guidelines (i.e., by ~March 2026) to remain eligible for VGF support
- MPPMCL & UPPCL to separately pursue MoP/GoI for additional VGF support for the 1000 MW/2000 MWh complementarity BESS project with UPPCL
- MPPMCL to seek separate CERC and other regulatory/administrative approvals for the UPPCL complementarity BESS tie-up
- MPPMCL to approach Commission again for further capacity approval to bridge the remaining ESO deficit in subsequent years
- Bid-discovered tariff to be filed with Commission for approval as part of subsequent PPA/BESPA approval process
- • BESS developers should track the upcoming MPPMCL competitive bidding for 500 MW/1000 MWh tolling capacity — an added near-term project pipeline opportunity in MP on InSTS network
- • C&I open-access consumers and RE developers should note MP's ESO targets (1-3% FY26-30) and persistent storage deficits, signalling continued regulatory push and possible future storage-linked open access/banking conditions
- • Tolling tariff model (discovered via competitive bidding) means costs will flow through MPPMCL's power purchase portfolio, potentially impacting future ARR/tariff for all consumer categories including C&I
- • Given the acknowledged residual ESO deficit even after this approval, further BESS/PSP capacity additions and bidding rounds are likely in MP, useful for developers planning capacity allocation and timeline
This is an incremental, VGF-driven approval (500 MW/1000 MWh) rather than the full 750 MW/1500 MWh originally sought — developers should not assume a large single bid is imminent beyond this size. The tight 9-month BESPA deadline under VGF guidelines suggests MPPMCL will move quickly to bid out this capacity; interested BESS players should track MPPMCL's bidding notifications closely. The Commission's explicit acknowledgment of a persistent, growing ESO deficit (over 2,000 MUs by FY29-30) signals more storage tenders are highly likely in MP over the next few years, making it a favorable state for BESS project pipeline planning.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.