Power Grid Corporation of India Ltd (PGCIL) has identified PPP-related opportunities in African nations, and domestic energy storage projects, among its key areas, the company’s CMD said.
At a very recent investor meet, Burra Vamsi Rama Mohan, Chairman & Managing Director, PGCIL, expounded on the company’s plans to explore the public-private partnership (PPP) model for developing power transmission infrastructure in African nations. Independently, Rama Mohan also indicated that PGCIL was keen to make further inroads in the energy storage space, thanks to favourable guidelines issued by Central Electricity Regulatory Commission (CERC) in March this year.
Interestingly, in both the above-mentioned areas, PGCIL made its debut during FY26.
PPP in African nations
PGCIL in FY26 recorded its first overseas power transmission development project under the PPP model. Despite being present in over 25 countries in various capacities, this is the first instance where PGCIL has turned transmission service provider (TSP) in the overseas market, under the PPP regime.
A new joint venture “Mwanga Transmission Company Ltd” was incorporated on April 21, 2026, in Kenya. While Africa50 is a 60 per cent shareholder, PGCIL has the remaining 40 per cent stake. In collaboration with Kenyan transmission utility KETRACO, this SPV will implement a $300-million project that is understood to be Africa’s first independent power transmission project.
Encouraged by this development, PGCIL is keen to explore similar opportunities in other African nations. “We see that there is good opportunity to move beyond Kenya, to other countries where this model can be utilized. Discussions are being held in Mozambique, Uganda and Zimbabwe,” the PGCIL CMD noted.
Though the SPV was incorporated in April 2026 (FY27), the project agreements, leading to the SPV formation, were signed in December 2025 (in FY26).
Energy storage
FY26 was also significant for PGCIL, marking the Central PSU’s debut in the battery energy storage system (BESS) space, under the tariff-based competitive bidding (TBCB) framework.
In late December 2025, PGCIL was issued the letter of award for a 150 MW/300 MWh BESS project in Andhra Pradesh. PGCIL was among the winners of a tariff-based bidding process carried out by Transmission Corporation of Andhra Pradesh Ltd (APTRANSCO) for setting up cumulative capacity of 2,000 MWh (1,000 MW x 2 hours) at selected substations of APTRANSCO. The BESS project won by PGCIL will be set up at the 400/220kV Kalikiri substation in Chittoor district of Andhra Pradesh.
Commenting on this development, Rama Mohan expressed confidence in PGCIL exploring the BESS space further. “We trust that this project will give us insight into how we could navigate through the BESS model in future.”
The PGCIL top official said that PGCIL’s BESS foray will also be galvanized by recent amendments issued by CERC, with respect to integrated energy storage projects.
In March 2026, CERC notified an amendment to the existing tariff regulations wherein integrated energy storage projects have been brought under the tariff structure, thereby allowing, among other things, TSPs to set up integrated energy storage projects under the tariff structure. “This will open up a new opportunity wherein PGCIL can start implementing storage projects under Section 62,” Rama Mohan said.
He also indicated that preliminary discussions have already been initiated to set up such energy storage projects in the Northern Region (NR) and Western Region (WR) grids. It may be mentioned that Section 62 of the Electricity Act, 2003, refers to projects developed under the regulated tariff mechanism (RTM). Projects under the TBCB framework (fixed tariff) are governed by Section 63 of the Electricity Act.
CERC guidelines on energy storage
On March 20, 2026, CERC issued a notification to amend tariff regulations in what is referred to as “Central Electricity Regulatory Commission (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2026.”
“These regulations shall also apply in all cases where the coal or lignite or gas-based thermal generating station or inter-state transmission system, installs for storage and supply of electricity from the integrated energy storage system, for the use of the beneficiaries or the designated ISTS customers, as the case may be, whose tariff is required to be determined by the Commission under section 62 of the Act read with section 79 thereof,” the notice said.
What this implies in simple terms is that integrated energy storage systems (ESS) would now be formally included under the tariff structure.
Accordingly, such energy storage systems, co-located with thermal power plants or transmission infrastructure, will now be treated as regulated assets whose costs can be recovered through tariffs.
Also read: PGCIL sets initial FY27 capex guidance at Rs.37,000 crore
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