The Delhi Electricity Regulatory Commission (DERC) on November 24, 2025, approved a major renewable energy procurement agreement for the city, following a petition filed by BSES Yamuna Power Ltd. (BYPL). The petition sought DERC’s approval for a Power Sale Agreement (PSA) with the Solar Energy Corporation of India (SECI), marking an important step toward securing reliable and sustainable green power for Delhi.
The approved PSA, which had been signed earlier on March 13, 2025, covers the procurement of 500 megawatts (MW) of solar power. Significantly, this solar power is coupled with a large-scale Energy Storage System (ESS) of 250 MW/1,000 MWh capacity. The inclusion of ESS ensures that power will be available even when solar generation is not possible, such as during nighttime or cloudy periods. This makes the project particularly valuable for enhancing grid stability and meeting Delhi’s increasing energy demand.
This procurement is part of a broader national initiative, the SECI 2,000 MW Solar Power with 1,000 MW/4,000 MWh ESS ISTS Scheme, specifically Tranche XVII. The initiative aims to integrate large-scale solar power with energy storage across India, providing dispatchable and reliable renewable energy to meet both peak and off-peak demand. By participating in this scheme, BYPL and Delhi will be able to contribute meaningfully to the country’s renewable energy goals while ensuring a stable power supply for consumers.
DERC’s review of the PSA led to its official approval, but the Commission also provided specific guidance regarding the financial terms of the agreement. The fixation of the final tariff and the applicable trading margin must follow the directions issued by the Central Electricity Regulatory Commission (CERC) in its related proceedings under Petition No. 234/AT/2025. This ensures that the financial framework of the project is consistent with national regulations and safeguards the interests of both power generators and consumers.
Another key aspect highlighted by the DERC relates to SECI’s role as the trading licensee for the solar power. Generally, trading margins are allowed up to ₹0.07 per kilowatt-hour (kWh). However, the Commission emphasized a specific condition tied to SECI providing a financial guarantee to the solar power generators. This guarantee could take the form of an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit. If SECI fails to provide the required financial assurance, the trading margin would automatically be limited to ₹0.02 per kWh. This measure is intended to protect the interests of the generators while ensuring financial accountability and transparency in the transaction.
The order concluded with the disposal of the petition on these terms, effectively giving BYPL the green signal to proceed with the 500 MW solar project with the 250 MW/1,000 MWh ESS. This approval represents a critical milestone for Delhi’s renewable energy journey, combining solar generation with energy storage to provide a reliable, clean, and dispatchable power supply.
The project is expected to strengthen the city’s renewable energy portfolio and support Delhi’s ongoing efforts to transition toward cleaner, sustainable, and more resilient energy systems. By integrating solar power with storage, the city can manage fluctuations in energy supply, reduce dependence on conventional power, and contribute to national and global climate goals. The DERC’s approval demonstrates the regulator’s commitment to facilitating large-scale renewable energy adoption while ensuring compliance with financial and operational safeguards, creating a model for future projects in the region.
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