A significant development has emerged in the proceedings pending before the Haryana Electricity Regulatory Commission (HERC) concerning approval of Haryana's proposed 250 MW/500 MWh Battery Energy Storage System (BESS) project.
During a review meeting convened by the Ministry of Power on 03.06.2026 to assess the implementation status of Battery Energy Storage System projects under various Viability Gap Funding (VGF) schemes, it was disclosed that the successful bidder selected for Haryana's 500 MWh BESS capacity under the PSDF-supported scheme is reconsidering the viability of the project and may not proceed with execution of the Battery Energy Storage Purchase Agreement (BESPA).
Matter Pending Before HERC
The issue assumes significance because UHBVNL has already approached the Haryana Electricity Regulatory Commission in Petition No. 23 of 2026 seeking:
- Approval of the source for procurement of 250 MW (500 MWh) Standalone Battery Energy Storage System;
- Approval of the Battery Energy Storage Sale Agreement (BESSA) executed between SJVN Limited and UHBVNL; and
- Approval of the tariff discovered through the competitive bidding process.
The matter was listed before the Commission on 10 June 2026, where the development regarding the selected bidder's possible withdrawal was brought to the notice of the Commission by counsel appearing for SJVN.
Ministry of Power Review Meeting
According to the Minutes of Meeting issued by the Ministry of Power on 08.06.2026, representatives from Haryana informed that:
The successful bidder for the 500 MWh BESS capacity allocated under the PSDF-supported scheme is re-evaluating the project's viability at the quoted tariff and may not sign the BESPA.
The Minutes further record that the developer has conveyed that the project is not financially viable and intends to exit the project. Consequently, DHBVN, UHBVNL and SJVN were advised to initiate the re-tendering process at the earliest if the selected bidder ultimately declines to execute the BESPA.
Hardi Hydro Energy Reportedly Reconsidering Participation
The selected developer for the Haryana BESS project, M/s Hardi Hydro Energy Private Limited, had emerged as the successful bidder in the competitive bidding process conducted through SJVN.
However, the developer has reportedly expressed concerns regarding the commercial viability of the project at the discovered tariff and is presently reassessing its participation.
If the developer formally declines execution of the BESPA, the entire procurement process may require fresh bidding.
Impact on HERC Proceedings
The development could materially impact the maintainability and scope of the proceedings presently pending before HERC.
The petition seeks approval of a procurement arrangement premised upon the successful completion of the bidding process and execution of the relevant contractual framework. If the selected bidder exits and the procurement process is re-tendered, the approvals sought in the present petition may require reconsideration or may become incapable of implementation in their present form.
Notably, no final order has yet been passed by HERC and final directions in the matter are still awaited.
Haryana's Earlier BESS Tender Also Cancelled
Interestingly, the Minutes of Meeting further reveal that Haryana has already cancelled another BESS procurement involving 20 MWh capacity under the budgetary support VGF scheme due to high tariff discovery during bidding. A proposal for re-tendering of that capacity is also under consideration.
Growing Challenges in BESS Deployment
The Ministry of Power review meeting highlighted that several States are facing implementation challenges in BESS projects, including:
- Delays in BESPA execution;
- Financial viability concerns;
- Land availability issues;
- Connectivity constraints;
- Pending litigation; and
- Requests for extension of implementation timelines.
The Haryana development is therefore part of a broader trend affecting deployment of utility-scale battery storage projects across the country.
Will This Impact Consumers?
What Happens Next?
The future course of action is likely to depend upon whether the selected bidder formally withdraws from the project.
If the bidder exits:
- UHBVNL and SJVN may initiate a fresh tender process;
- Revised tariffs may be discovered;
- Fresh contractual arrangements may be required;
- Regulatory approvals may need to be revisited.
Until then, HERC is expected to consider the implications of the changed circumstances while dealing with Petition No. 23 of 2026.
Key Takeaway
The proposed 250 MW/500 MWh BESS project, which was expected to become Haryana's flagship battery storage initiative under the PSDF-supported VGF scheme, now faces uncertainty after the successful bidder reportedly expressed unwillingness to proceed due to viability concerns. The development may have a direct bearing on the approval proceedings currently pending before HERC.