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Petition for Truing up and determination of the transmission tariff for Combined Asset under “Northern Region System Strengthening Scheme-XV” – EQ

Summary:

### **1. PROCEEDINGS & COMMISSION’S DIRECTIONS**

After hearing PGCIL’s representatives, the Commission issued the following procedural directions:

**A. Timeline for Submissions:**
1. **Respondents** (State Utilities) to file their **replies within two weeks**, with an advance copy to PGCIL.
2. **PGCIL** may file its **rejoinder within two weeks** thereafter.

**B. Specific Information Sought from PGCIL (on Affidavit within two weeks):**
The Commission directed PGCIL to provide detailed, asset-specific information for most petitions. The **common themes** across the data requests are:

1. **Detailed Cost Breakdowns:**
* **Item-wise unit cost** for claimed Additional Capital Expenditure (ACE) related to asset replacement.
* **Element-wise/Party-wise break-up** of capital costs (as on 31.3.2019) and claimed ACE.

2. **Historical Comparison & Justification:**
* **Comparison tables** showing ACE **allowed in previous tariff orders vs. claimed now** for 2019-24, with justifications for any variations.
* **Reconciliation of cost overruns** (e.g., Petition 525/TT/2025 notes a variation of ₹1117.53 lakh).

3. **Regulatory Form Compliance:**
* Submission of specific **Forms (e.g., Form-5, 7B, 9C, 9E, 13)** related to plant & machinery cost, depreciation, and tariff calculations for both 2019-24 and 2024-29 periods.

4. **Technical & Economic Justification for Future Capex (2024-29):**
* **Basis, technical justification, and cost-benefit analysis** for ACE/De-capitalization claimed under **Regulation 25(2) of the 2024 Tariff Regulations**.

5. **Supporting Documentation:**
* **Certificates of obsolescence** from OEMs or competent authorities for replaced equipment.
* **Minutes of relevant committee meetings** approving projects (e.g., NERPC/TCC for Kumarghat substation in Petition 539/TT/2025).
* **Liquidated damages recovery statements** and **initial spares discharge statements**.

### **2. KEY BUSINESS & REGULATORY IMPLICATIONS**

* **Regulatory Scrutiny:** The Commission is conducting a **detailed, granular review** of PGCIL’s capital expenditures, both past (truing up) and future (tariff determination). The focus is on **prudence, justification, and cost-effectiveness**.
* **Focus on ACE:** A significant portion of the inquiry revolves around **Additional Capital Expenditure (ACE)**, indicating scrutiny of project cost overruns, replacements, and upgrades.
* **Transparency & Accountability:** The directives emphasize **transparency** through standardized formats (tables, forms), comparisons with past approvals, and demand for third-party certificates (OEM).
* **Procedure:** The process follows a standard regulatory timeline: **Petition → Hearing → Directions for Information → Respondent’s Reply → Rejoinder → Final Order**.
* **Subject Matter:** The petitions cover a wide range of transmission assets—from system strengthening schemes to project-specific systems—highlighting PGCIL’s ongoing role in national grid development and the subsequent periodic tariff resets.
* **Next Steps:** The matters are **reserved for order** after compliance with the above directions. The final tariff orders will determine the revenue PGCIL can recover from beneficiary states for using these transmission assets for the next five years.

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Juniper Green Energy Commissions 100 MWh Merchant BESS in Rajasthan, Strengthening India’s Grid-Scale Storage Landscape – EQ

In Short : Juniper Green Energy has commissioned a 100 MWh merchant battery energy storage system in Rajasthan, marking a significant milestone in India’s energy storage journey. The project enhances grid flexibility, supports renewable integration, and demonstrates the growing commercial viability of standalone storage assets in stabilising power supply and managing demand variability.

In Detail : Juniper Green Energy has successfully commissioned a 100 MWh merchant battery energy storage system in Rajasthan, representing a major advancement in India’s evolving power and storage ecosystem. The project highlights the increasing role of large-scale energy storage in supporting grid stability as renewable energy penetration continues to rise across the country.

The newly commissioned battery energy storage system operates on a merchant basis, allowing it to respond dynamically to market signals and grid requirements. By charging during periods of surplus power and discharging during peak demand, the system helps balance supply and demand while improving overall grid efficiency.

Rajasthan, with its large renewable energy capacity, particularly in solar and wind, provides an ideal setting for grid-scale storage deployment. The BESS is expected to play a crucial role in managing the intermittency associated with renewable generation and ensuring a more reliable flow of electricity to consumers.

Energy storage systems like this enable better utilisation of renewable assets by reducing curtailment and smoothing fluctuations in power generation. By absorbing excess energy and releasing it when needed, the project supports higher renewable integration without compromising grid reliability.

The commissioning of a merchant BESS also reflects growing confidence in the commercial and regulatory frameworks surrounding energy storage in India. It signals a shift toward market-driven storage solutions that can operate independently of long-term power purchase agreements while still delivering grid value.

From a system operations perspective, the storage facility can provide multiple services, including peak shaving, frequency regulation, and reserve support. These capabilities enhance grid resilience, particularly during periods of high demand or sudden changes in generation patterns.

The project aligns with India’s broader energy transition goals, which emphasise clean energy growth supported by enabling infrastructure such as storage, advanced transmission, and smart grid technologies. Battery storage is increasingly seen as a cornerstone for achieving round-the-clock renewable power.

For developers and investors, the commissioning demonstrates the technical and economic feasibility of large-scale storage projects in the Indian market. It is expected to encourage further investments in standalone and hybrid storage solutions across renewable-rich states.

Overall, Juniper Green Energy’s 100 MWh merchant BESS in Rajasthan represents a meaningful step toward a more flexible, reliable, and future-ready power system. By strengthening grid operations and supporting renewable energy integration, the project contributes to building a resilient energy infrastructure aligned with India’s long-term sustainability objectives.

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