A 25-year-old dispute between Lanco Kondapalli Power Ltd and the electricity distribution company (discom) of Andhra Pradesh was settled recently by the Central Electricity Regulatory Commission.

Lanco Kondapalli owned a 368 MW gas-fired power plant. The dispute was over the date of commencing power generation. Lanco said the plant started functioning in October 2000; the AP/Telangana discom put it at January 2001, describing the earlier period as a trial run for which it would pay only for fuel and not the fixed charges. At the heart of the dispute was ₹78 crore.

On March 23, the commission ruled in favour of Lanco. The discom will have to pay Lanco ₹165 crore, including interest. The key takeaway from the ruling is that the ‘commercial operation date’ is the plant’s operational readiness and not buyer approval.

Tariff framework to cover energy storage systems

On March 20, the Central Electricity Regulatory Commission (CERC) notified amendments to its tariff regulations, formally integrating energy storage systems (ESSs) into India’s central tariff framework.

For the first time, integrated ESSs are treated as core assets rather than pilot add-ons. The rules extend the 2024 tariff framework to coal-, lignite- and gas-based stations, as well as inter-State transmission systems (ISTS), when they deploy storage for beneficiaries.

The amendments introduce standardised technical definitions — covering parameters such as battery cycle, depth of discharge, C-rate, state of charge, and round-trip efficiency — creating a common technical-commercial language. They also establish a supplementary tariff structure with separate fixed storage charges and energy charges.

The annual fixed cost of ESS will recover capital costs through fixed charges, while energy charges reflect the cost of electricity used for charging, adjusted for efficiency (minimum 85 per cent) and auxiliary consumption. Lithium-ion ESS are assigned a 15-year useful life.

Developers must file supplementary tariffs within 90 days of commissioning, improving transparency and giving investors, utilities and lenders clarity on how storage assets will be valued and paid for.

Round-the-clock supply of green energy

Rays Power Infra Limited, via its subsidiary Bhalki Solar Power Private Limited, has been awarded the mandate to develop and construct a 200 MW round-the-clock renewable energy project to supply to Railways Energy Management Corporation Limited.

The project will integrate more than 700 MW of solar and wind capacity, supported by over 1,000 MWh of battery energy storage system, ensuring uninterrupted power delivery. It will add ₹5,000 crore to the company’s orderbook, and is to be commission by June 2028, with modules made using solar cells from Rays Power’s upcoming facility in Madhya Pradesh, under its subsidiary Rays Green Energy.

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Published on March 30, 2026