UPPCL awards 375 MW BESS under VGF Tranche 2 auction
Uttar Pradesh Power Corporation Limited (UPPCL) has completed the e-reverse auction for its 375 MW / 1,500 MWh Battery Energy Storage System (BESS) tender under the Viability Gap Funding (VGF) Tranche 2 scheme. Three bidders have been selected to develop standalone storage projects on a build-own-operate basis.
KCC Buildcon Private Limited and Agastya Energy Industries Private Limited each secured 62.5 MW / 250 MWh capacity at a tariff of Rs 6.45 per kWh. MKC Infrastructure Limited won 187.5 MW / 750 MWh at Rs 6.46 per kWh. A total of eleven bidders participated in the auction, which was issued in September 2025.
Under the tender terms, developers will set up the BESS projects and establish interconnection with the state transmission utility network, including construction of the associated bay. Land identification is part of the developer’s scope, and projects can be located anywhere within Uttar Pradesh.
Each project is required to support one full charge-discharge cycle per day. The systems will supply stored power on demand under 15-year contracts through a Battery Energy Discharge Purchase Agreement (BEDPA) with UPPCL. Developers will arrange charging power, primarily from renewable sources, while UPPCL will manage discharging operations.
The projects are eligible for central financial support through VGF under the Power System Development Fund (PSDF).
The featured photograph is for representation only.