Uttar Pradesh Awards 375 MW BESS Tender at Rs 6.45/kWh

06 May 2026 CW Team

Uttar Pradesh Power Corporation Ltd (UPPCL) has allocated 1,500 megawatt hour (MWh) of standalone battery energy storage system (BESS) capacity, equivalent to 375 megawatt (MW) × four hours, at a tariff of Rs 6.45–6.46/kWh. The authority described the allocation as part of a state tender to procure dispatchable storage capacity for grid flexibility. The capacity was procured through an e reverse auction conducted by the utility.

Contracts will run for 15 years, with developers required to arrange charging power independently. Each BESS must support one operational cycle per day equivalent to a full charge and discharge sequence. Charging arrangements will form part of the developers' contractual obligations.

Of the 11 participants in the e reverse auction, KCC Buildcon and Agastya Energy Industries were awarded the largest shares by quoting the lowest price of Rs 6.45/kWh, at capacities of 187.5 MW and 62.5 MW respectively. The balance capacity was secured by MKC Infrastructure at Rs 6.46/kWh. Selected developers will be required to sign a Battery Energy Discharge Purchase Agreement (BEDPA) with UPPCL to supply stored energy and the BEDPA will set commercial and performance terms for dispatch and payment.

The tender stipulates that developers will be responsible for setting up the BESS and for sourcing charging power independently, primarily from renewable energy sources, while discharging will be under the scope of UPPCL. Projects will be eligible for viability gap funding (VGF) under the Power System Development Fund (PSDF) subject to applicable conditions. UPPCL will dispatch stored energy on demand to assist grid balancing and peak management.

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