Ministry of Power Issues Temporary Registration Waiver for Lithium-Ion BESS Bidders

On January 9, 2026, the Ministry of Power (NRE Section) issued a formal notification granting a temporary relaxation of procurement regulations to accelerate the deployment of energy storage infrastructure. In response to multiple representations from Battery Energy Storage System (BESS) manufacturers, the Ministry has authorized a one-year waiver of the mandatory registration requirement under the Department of Expenditure’s Public Procurement Order No. 4 (dated February 23, 2023). Invoked under Clause 15(iv) of the primary order, this waiver applies specifically to bidders utilizing lithium-ion cell technology for grid-connected BESS tenders and is effective for one year from the date of issuance.

Eligibility and Technical Scope

The waiver is specifically designed to facilitate participation from bidders operating under Transfer-of-Technology (ToT) arrangements with entities from countries sharing a land border with India. By removing the immediate requirement for registration with the Competent Authority, the Ministry aims to broaden the pool of international competitive bidding for marquee projects, such as the NTPC Renewable Energy Limited (NREL) tender for 1000 MWh BESS capacity at the Bikaner Solar Plant (IFB No. NREL-CS-5800-004(BESS1)-9).

In alignment with current industrial standards for grid-scale applications, the scope of technology and performance parameters covered under this regulatory framework includes:

• Technology Specification: Grid-connected systems utilizing lithium-ion cell technology.
• Design Longevity: Systems must adhere to a 25-year design life, accounting for degraded capacity under daily single-cycle operations.
• Cycle Life: Batteries offered must be rated for a minimum of 10,000 cycles of operation.
• Capacity Rating: To ensure a 1000 MWh deliverable capacity at the Point of Injection (POI), bidders must provide a minimum nameplate rated installed capacity of 1100 MWh.
• Efficiency and Availability: A minimum monthly Round Trip Efficiency (RTE) of 80% (including auxiliary consumption) and a monthly availability of 98% remain mandatory.

Stated Rationale for the Waiver

The Ministry’s decision reflects an urgent need to bridge the gap between India’s ambitious climate targets and the current state of the domestic supply chain. The rationale provided emphasizes several critical data points and assessments:

• Scarcity of Advanced Cells: The Ministry explicitly noted that while lithium-ion technology is the most mature and cost-effective option globally, the domestic production of “advanced battery cells” remains in a nascent stage, necessitating a reliance on established global technology partners.
• CEA Storage Projections: Data from the Central Electricity Authority (CEA) projects that India requires 208 GWh of battery storage capacity by 2029-30 to maintain grid reliability. This stands in stark contrast to the current installed base of approximately 0.5 GWh.
• Climate Commitments: Rapid BESS deployment is identified as essential for meeting India’s revised Nationally Determined Contributions (NDC), which mandate a 45% reduction in GDP emission intensity and a goal of 50% non-fossil fuel installed capacity by 2030.

Compliance Context and Remaining Mandates

While the registration requirement is temporarily waived, the Ministry has clarified that all other procurement standards and domestic value-addition mandates remain in force. Specifically, the directive issued on December 31, 2025, maintains strict local content thresholds for projects implemented under the Viability Gap Funding (VGF) scheme.

Bidders must continue to comply with the following:

• Local Content Threshold: Both Class-I and Class-II local suppliers remain eligible to participate, provided they meet the minimum 20% local content requirement relative to total project cost.
• Energy Management System (EMS): In accordance with the VGF Guidelines amendment dated August 4, 2025, the use of indigenously developed EMS software is mandatory.
• Technical Standardization: BESS components and fire safety systems must strictly adhere to the latest BIS, IEC, or IEEE standards as defined in the technical specifications.

Administrative Communication and Implementation

The notification has been approved by the Competent Authority and dispatched from Shram Shakti Bhawan, New Delhi. Signed by Sunil Kumar Sharma, Director (RCM/NRE), the official communication has been distributed to Principal Secretaries of Power/Energy for all State Governments and Union Territories, Chairmen and Managing Directors of Central Power Utilities (CPSUs), and heads of Renewable Energy Implementing Agencies (REIAs). Copies were also marked to the Department for Promotion of Industry and Internal Trade (DPIIT) and the National Security Council Secretariat for inter-departmental alignment.