The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the Uttar Pradesh Power Corporation’s (UPPCL) petition to procure 375 MW/1,500 MWh of standalone battery energy storage system (BESS) capacity with viability gap funding (VGF) support.

The approval was granted for a 15-year period.

The Commission directed UPPCL and the implementing agency to initiate the tariff adoption process and approve the battery energy storage purchase agreement (BESPA) without delay, given that the tariff has already been determined through competitive bidding.

Background

The petition was filed to address the growing variability of renewable energy integration in the grid, particularly solar and wind power, and to meet peak evening and morning demand.

UPPCL sought in-principle approval for the procurement of BESS under the VGF program issued on October 17, 2024, which required bids and signing of BESPA within nine months.

SJVN acted as the BESS implementing agency and intermediary procurer under the VGF program’s Central Public Sector Undertaking component. The procurement was designed for 375 MW/1,500 MWh through a tariff-based competitive bidding process on a build-own-operate basis.

The discovered tariff was approximately ₹359,000 (~$4,294.41)/MW/month, which UPPCL contended was competitive compared to recent bids in other states.

Two bidders were selected in the e-reverse auction: Patel Infrastructure for 187.5 MW/ 750 MWh and Enerica Infra 3 for 187.5 MW/750 MWh.

UPPCL executed a battery energy storage sale agreement (BESSA) with SJVN on July 15, 2025.

Commission’s Analysis

The Commission observed that the BESS project would support renewable energy integration, reduce dependence on thermal generation during peak hours, and help avoid interstate transmission losses by being located within Uttar Pradesh.

It noted that failure to meet the VGF program deadlines would increase financial burden on the state distribution companies and consumers. The Commission emphasized that implementation should be expedited to retain eligibility for VGF.

The Commission directed the petitioner to proceed quickly with tariff adoption and agreement approvals.

Recently, UPERC approved a tariff of ₹3.84 (~$0.044)/kWh for the procurement of 300 MW wind-solar hybrid power by Noida Power Company.

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