DERC approves Tata Power’s 200 MW FDRE project

The Delhi Electricity Regulatory Commission (DERC) has granted in-principle approval to Tata Power Delhi Distribution Limited (TPDDL) to procure 200 MW of firm and dispatchable renewable energy integrated with storage, with an additional 200 MW greenshoe option. The approval, issued on November 3, 2025, allows TPDDL to launch a competitive bidding process for projects that combine renewable generation and battery storage to supply round-the-clock clean power.

The initiative is a key part of Delhi’s strategy to meet rising Renewable Purchase Obligation (RPO) targets, which require distribution companies to source 33.01% of their power from renewables by 2025–26 and 43.33% by 2029–30. It will also help TPDDL bridge its projected 1,493 MW capacity shortfall by 2034–35 and contribute to India’s national goal of achieving 500 GW of non-fossil fuel capacity by 2030.

To encourage participation and ensure project viability, DERC approved certain deviations from the Ministry of Power’s standard bidding guidelines, including the removal of the 50% cap on capacity allocation and stronger penalties for generator underperformance. However, the Commission rejected proposals to reduce procurer default damages, alter change-in-law clauses, and extend performance bank guarantee timelines, maintaining consistency with central norms to safeguard consumer interests.

DERC has directed TPDDL to ensure the bidding process remains transparent, competitive, and compliant with the 2022 BESS and renewable procurement guidelines. The utility must submit the finalised power purchase and storage agreements, along with discovered tariffs, for the Commission’s approval before signing contracts with successful bidders.

In a separate order issued on November 4, 2025, DERC also granted in-principle approval to BSES Rajdhani Power Limited (BRPL) for developing 55.5 MW/111 MWh of grid-scale battery energy storage systems (BESS) across four substations in South and West Delhi. The projects, designed for a two-hour storage duration, will enhance grid flexibility and support renewable energy integration.

Together, these initiatives strengthen Delhi’s clean energy transition by expanding renewable and storage capacity, improving grid stability, and supporting long-term sustainability and reliability in the capital.

The featured photograph is for representation only.