The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved tariffs of ₹6.64 (~$0.07)/kWh and ₹6.65 (~$0.07)/kWh for NTPC Vidyut Vyapar Nigam’s (NVVN) 250 MW/1,000 MWh standalone battery energy storage projects.

The Commission also approved a trading margin of ₹0.07(~$0.0007)/kWh.

Background

The petitioner, NVVN, issued a tender to supply energy from 250 MW/1,000 MWh interstate transmission system- connected battery energy storage projects. The tender also included a greenshoe option of the same capacity.

The Ministry of Power (MoP) had nominated NVVN as the implementing agency for developing the 2,000 MWh of battery storage projects allocated to NTPC. It also provided viability gap funding of up to ₹13.5 billion (~$145.69 million) to NTPC, NHPC, and SJVN to develop 5,000 MWh of battery energy storage capacity.

The tender was floated at the request of Uttar Pradesh Power Corporation (UPPCL), which agreed to offtake the entire 2 GWh of stored energy. However, NVVN floated a tender for 1 GWh capacity out of the 2 GWh allocated.

NVVN received bids from 11 bidders, with 10 bidders qualifying for the techno- commercial round.

Eight bidders quoted tariffs ranging from ₹6.64 (~$0.07)/kWh to ₹7.99 (~$0.086)/kWh in the e-reverse auction.

Subsequently, NVVN awarded Sunsure Energy and Enrica Infra, each with 125/500 MWh, at tariffs of ₹6.64 (~$0.07)/kWh and ₹6.65 (~$0.07)/kWh, respectively.

Commission’s Analysis

After considering the petitioner’s submissions, the Commission ruled that tariffs were determined through a competitive bidding process and approved tariffs of ₹6.64 (~$0.07)/kWh and ₹6.65 (~$0.07)/kWh.

The Commission also approved a trading margin of ₹0.07 (~$0.0007)/kWh.

The Commission directed NVVN and the successful bidders to ensure that the projects are completed by February 2027.

It noted that commissioning these projects would help UPPCL manage its peak load effectively.

In February 2026, UPERC adopted tariffs ranging between ₹359,000 (~$3,923)/MW per month and ₹359,999 (~$3,934)/MW per month for a 375 MW/1,500 MWh standalone battery storage project to be set up in Uttar Pradesh under the VGF program.