The Delhi Electricity Regulatory Commission (DEC) Has Approved A 2-hour Battery Storage Configuration

 

The Delhi Electricity Regulatory Commission (DEC) has approved a 2-hour battery storage configuration for a 12.5MW/25MWh project to meet distribution-level peak shaving needs.

 

The DEC has approved BSES Rajdhani Electricity's application to construct a 12.5MW/25MWh battery storage system in the Shivalik grid, specifying a 2-hour storage duration.

 

The DEC believes that a 2-hour storage system is sufficient to meet distribution-level peak shaving, demand fluctuation management, frequency response, and congestion mitigation needs. Longer-duration storage assets (4 hours and above) primarily provide system-level stability, evening peak coverage, and flexibility during periods of sustained low renewable energy generation.

 

Based on the successful experience of the already operational 20MW/40MWh battery storage project in the Kilokari grid, the project will strictly adhere to battery storage system guidelines during the tendering process. It is expected to generate approximately ₹115 million annually over a 12-year operating period, with revenue sources including energy arbitrage, investment deferral, ancillary services, and reliability improvements.

 

The Delhi Electricity Regulatory Commission emphasized that the 2-hour configuration complies with the Indian Ministry of Electricity and the Central Electricity Authority's recommendation for at least 2 hours of distribution-level energy storage. A combination of 2-hour and 4-hour systems can effectively meet the overall demand for standard 4-hour energy storage. This energy storage system will also alleviate feeder pressure on Delhi Transmission Company and improve local power supply reliability through islanding capabilities.

 

According to the Central Electricity Authority's forecast, BSES Rajdhani Electricity Company needs to equip itself with 281 MW of 4-hour energy storage capacity by fiscal year 2028-29. However, the Indian Ministry of Electricity clarified that states can flexibly choose between 2-hour or 4-hour configurations based on actual needs, as long as at least 6,300 cycles are completed within the project cycle.