Panchkula: The Haryana Electricity Regulatory Commission (HERC) has permitted withdrawal of two petitions relating to procurement and tariff adoption of a 250 MW/500 MWh Standalone Battery Energy Storage System (BESS) project in Haryana after the successful bidder expressed unwillingness to proceed with the project.
The Commission, while passing separate orders dated 05 August 2026, dismissed both petitions as withdrawn with liberty to approach the Commission afresh in accordance with law. The petitions had become infructuous due to subsequent developments concerning the tender process and proposed re-tendering of the BESS capacity.
The development relates to Haryana’s plan to establish a large-scale standalone Battery Energy Storage System to support grid stability, renewable energy integration and power management requirements in the State.
UHBVNL Petition Seeking Approval Of BESS Procurement Withdrawn
In HERC Petition No. 23 of 2026, Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) had approached the Commission under Section 86(1)(b) of the Electricity Act, 2003 read with the HERC Conduct of Business Regulations, 2019.
The petition sought approval for the source of procurement of 250 MW/500 MWh Standalone BESS proposed to be established in Haryana. It also sought approval of the back-to-back Battery Energy Storage Sale Agreement (BESSA) proposed to be executed between SJVN Limited, acting as intermediary procurer, and UHBVNL.
UHBVNL appeared before the Commission through its Chief Engineer (Commercial), while SJVN Limited was arrayed as the respondent in the proceedings.
The matter was heard on 09 July 2026. During the hearing, counsel appearing for UHBVNL submitted that the successful bidder had expressed unwillingness to proceed with the project, making it necessary to withdraw the petition. UHBVNL also requested refund or adjustment of the petition filing fee, stating that withdrawal had become necessary due to circumstances beyond its control.
Ministry Of Power Decision Leads To Fresh 530 MWh Tender Proposal
During the proceedings, UHBVNL informed the Commission about subsequent developments arising from a meeting held by the Ministry of Power on 17 June 2026 under the Chairmanship of Secretary (Power).
As per the submissions placed before HERC, Haryana was required to issue a fresh combined tender for 530 MWh BESS capacity.
The proposed combined capacity included:
- 500 MWh capacity from the earlier tender process pending before the Commission; and
- 30 MWh additional capacity relating to an earlier allocation which had been cancelled due to high tariff discovery.
The Ministry of Power decided that re-tendering and award of the total 530 MWh BESS capacity should be completed by 30 September 2026.
The petitioner further informed that the total Viability Gap Funding (VGF) support of ₹5.4 crore allocated to Haryana would continue under the scheme. However, the earlier allocation structure would be modified, with Haryana receiving 30 MWh capacity at VGF support of ₹18 lakh/MWh instead of the earlier 20 MWh allocation at ₹27 lakh/MWh.
SJVN Tariff Adoption Petition Also Withdrawn
The connected matter, HERC Petition No. 28 of 2026, was filed by SJVN Limited under Section 63 of the Electricity Act, 2003 seeking adoption of tariff discovered through competitive bidding for setting up a 250 MW/500 MWh Standalone BESS project in Haryana. SJVN had approached the Commission after completion of the competitive bidding process for tariff adoption.
However, during the proceedings, SJVN informed the Commission that it had filed an affidavit seeking withdrawal of the petition as the successful bidder had expressed unwillingness to proceed with the project. SJVN sought liberty to approach the Commission afresh after completion of the revised tendering process. It also requested refund or adjustment of the filing fee deposited in the present proceedings.
Fresh Tender Process For 530 MWh Capacity Underway
SJVN informed HERC that the VGF scheme for BESS projects in Haryana remained operational and had been extended.
It was submitted that the Ministry of Power had mandated a fresh combined tender for the entire 530 MWh capacity, consisting of:
- 500 MWh PSDF-funded project; and
- revised 30 MWh budgetary support project.
According to SJVN’s submissions, the re-tendering process was underway and nearing final approval by the competent authorities. After completion of the fresh bidding process, SJVN would approach the Commission again for adoption of tariff discovered through the new competitive bidding process.
HERC Rejects Refund Or Adjustment Of Filing Fee
An important aspect of both orders was the Commission’s decision regarding the petition filing fee.
Both petitioners had requested that the filing fee already deposited should either be refunded or adjusted against future petitions to be filed after completion of the fresh tender process.
However, HERC rejected the request.
The Commission observed that the regulatory framework does not provide any provision for refund or adjustment of petition filing fees once a petition has been instituted. The Commission held that the filing fee prescribed under the HERC (Fee) Regulations, 2005, as amended from time to time, is a statutory levy payable at the time of filing of the petition.
Accordingly, the request for refund or adjustment against future proceedings was rejected. A similar view was taken in the SJVN petition, where HERC held that the filing fee cannot be refunded or adjusted against any future petition.
HERC Allows Fresh Approach After Re-Tendering
After considering the submissions of the parties, HERC held that the petitions had lost their purpose due to subsequent developments. In Petition No. 23 of 2026, the Commission observed that the petition had become infructuous and consequently lost its substratum. The petition was dismissed as withdrawn with liberty to approach the Commission afresh, if required, in accordance with law.
Similarly, in Petition No. 28 of 2026, HERC dismissed the petition as withdrawn while granting liberty to approach the Commission again after completion of the revised tender process.
Significance Of The Order
The HERC orders mark an important development in Haryana’s energy storage roadmap. Battery Energy Storage Systems are increasingly being considered essential for managing renewable energy variability, improving grid reliability and ensuring efficient utilisation of renewable power.
The withdrawal of the existing petitions does not terminate the BESS initiative but indicates a shift towards a larger combined procurement model of 530 MWh capacity through a fresh competitive bidding process.
The Commission has kept the regulatory pathway open by granting liberty to file fresh petitions after completion of the revised tender process.
Conclusion
The Haryana Electricity Regulatory Commission has allowed withdrawal of petitions relating to the proposed 250 MW/500 MWh Standalone Battery Energy Storage System project after the earlier bidder declined to proceed.
With the Ministry of Power directing Haryana to undertake a fresh combined tender for 530 MWh BESS capacity, the State is expected to restart the procurement process with revised parameters.
While HERC permitted withdrawal of the petitions, it clarified that petition filing fees already deposited cannot be refunded or adjusted under the existing regulatory framework. The next stage will depend upon completion of the fresh bidding process and filing of new petitions before the Commission for regulatory approvals and tariff adoption.