UPERC approves plan for procurement of power from battery storage system

The project will enable the storage of 1,500 MWh of electricity, largely sourced from renewable energy, to be supplied during high-demand periods such as evenings.

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a proposal by Uttar Pradesh Power Corporation Limited (UPPCL) to procure power from 375 MW battery energy storage systems (BESS), aimed at boosting supply during peak hours. The commission, however, sharply censured the utility for submitting incorrect documents during the approval process.

A view of one of the offices of Uttar Pradesh Power Corporation Limited (UPPCL) (File)

The commission accorded its approval through a detailed order on March 20.

The project will enable the storage of 1,500 MWh of electricity, largely sourced from renewable energy, to be supplied during high-demand periods such as evenings.

Developers will set up the battery systems and arrange renewable energy for charging, with UPPCL procuring the stored power under 15-year contracts through competitive bidding and reverse auctions.

The commission, however, expressed strong displeasure after finding discrepancies between the documents submitted to it and those uploaded on the bidding portal. This included a compensation clause that violated norms set by the ministry of power.

Calling the lapse “lamentable,” UPERC said it was “extremely disturbed” by the inaccurate filings, especially since UPPCL had sought urgent approval. The utility later tendered an apology, terming the error inadvertent.

In approving the plan, the regulator stipulated that projects must be commissioned within 18 months, connect to the state grid at a minimum 132 kV level, and ensure 95% monthly availability. Payment security will be backed by a revolving bank guarantee, given the financial stress of discoms.

The commission warned UPPCL against such lapses in the future and directed it to ensure full transparency and accuracy in all submissions.