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UPERC Approves 375 MW/1,500 MWh Battery Energy Storage Procurement with VGF Support

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the Uttar Pradesh Power Corporation Ltd. (UPPCL)’s plan to procure 375 MW/1,500 MWh of standalone battery energy storage system (BESS) capacity under the Government of India’s Viability Gap Funding (VGF) program. The approval is valid for 15 years, with the Commission directing UPPCL and the implementing agency to swiftly initiate the tariff adoption process and finalize the battery energy storage purchase agreement (BESPA).

The procurement aims to address the rising variability in renewable energy integration, particularly solar and wind, while ensuring reliable supply during peak evening and morning hours. SJVN is acting as the implementing agency and intermediary procurer under the Central Public Sector Undertaking component of the VGF program. The project was awarded through a tariff-based competitive bidding process on a build-own-operate basis.

In the e-reverse auction, Patel Infrastructure and Enerica Infra 3 each secured contracts for 187.5 MW/750 MWh. The discovered tariff was about Rs359,000/MW/month, considered competitive compared to recent projects in other states. UPPCL had already executed a battery energy storage sale agreement (BESSA) with SJVN in July 2025.

UPERC emphasized that the BESS project would enhance renewable energy integration, reduce reliance on thermal generation during peak demand, and minimize interstate transmission losses. The Commission warned that delays could lead to financial strain on state discoms and consumers, urging immediate implementation to maintain VGF eligibility.