Uttar Pradesh Power Corporation Limited (UPPCL) has awarded a 15-year contract for a 375 MW / 1500 MWh Battery Energy Storage System (BESS) project under Viability Gap Funding (VGF) Tranche 2. The UPPCL BESS Tender, which was issued in September, has been finalized after a seven-month evaluation period, reflecting growing momentum in India’s grid-scale energy storage segment.
The project, designed as a 4-hour, 1-cycle BESS system, witnessed participation from 11 companies. The discovered tariffs ranged narrowly between ₹6.45/kWh and ₹6.46/kWh, indicating competitive bidding and improving cost efficiency in the sector.
Among the selected developers, these companies comfirmed their spot for the Project
- KCC Buildcon Private Limited secured a 187.5 MW BESS project at a tariff of ₹6.45/kWh
- Agastya Energy Industries Pvt Ltd (Agastya Green Energy) was awarded a 62.5 MW project at the same tariff
- MKC Infrastructure Ltd (MKC Green Energy) won a 187.5 MW project at ₹6.46/kWh
Other bidders included major industry players such as Coal India, NLC India Renewables, MB Power (Madhya Pradesh), Stockwell Energy, RKC Infra Built Energy Vault Five Private Limited, Avaada Energy, Ayana Renewables, and Gallantt Ispat, highlighting strong industry interest in large-scale storage deployments.
The tender specifies a minimum bid size of 250 MWh, equivalent to 62.5 MW with a 4-hour discharge duration. Developers are required to arrange charging power from renewable energy sources and design systems capable of delivering up to four hours of continuous discharge. The project is supported through VGF under the Power System Development Fund (PSDF), aimed at accelerating energy storage adoption in India.
This tender marks a significant milestone, accounting for over 50% of the total capacity allocated under VGF Tranche 2. With this allocation, approximately 15.5 GWh of BESS capacity has now been tendered across India. States such as Rajasthan, Gujarat, and Maharashtra have already issued cumulative bids of around 4 GWh, while Andhra Pradesh has tendered 2 GWh. Uttar Pradesh’s latest addition contributes 1.5 GWh to this growing pipeline.
The UPPCL tender follows earlier developments by NTPC Vidyut Vyapar Nigam Limited, which had awarded a 250 MW / 1000 MWh BESS project at tariffs of ₹6.64–₹6.65/kWh. That tender was among the first in India where developers were responsible for arranging charging power, with pricing discovered in ₹/kWh.
As India accelerates renewable energy integration, large-scale battery storage projects such as this UPPCL BESS Tender are expected to play a crucial role in enhancing grid stability, optimizing power distribution, and supporting the country’s clean energy transition.
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