SJVN has successfully concluded the auction for setting up a 375 MW/1500 MWh standalone Battery Energy Storage System (BESS) in Uttar Pradesh. The auction was conducted under the Viability Gap Funding (VGF) scheme through a tariff-based competitive bidding process. This initiative is aimed at improving the grid stability and boosting energy storage capacity in the state.
Two companies emerged as winners in this auction – Patel Infrastructure Limited and EnerGrid. Both companies secured equal capacities of 187.5 MW/750 MWh. Patel Infrastructure Limited quoted a tariff of ₹3.59 lakh per MW per month, while EnerGrid quoted ₹3.5999 lakh per MW per month. Together, they will develop a cumulative storage capacity of 325 MW/1500 MWh.
This tender was issued by SJVN Limited in February 2025. The company had released a Request for Selection (RfS) document inviting developers to set up the BESS projects under the Build-Own-Operate (BOO) model for a period of 20 years. Under this model, the developers will own and operate the BESS facilities, and the energy storage capacity will be procured by SJVN and sold to the Uttar Pradesh Power Corporation Limited (UPPCL).
The bidding guidelines specified that the minimum project capacity to be bid was 500 MWh, equivalent to 125 MW with a 4-hour storage duration. The maximum allowed capacity for a single bidder was 750 MWh, equivalent to 187.5 MW with 4-hour storage. The total capacity targeted under the tender was 1500 MWh.
The project marks a significant step in the adoption of battery energy storage in India, especially for large-scale grid applications. By supporting these projects under the VGF scheme and implementing them through a competitive bidding route, the government aims to reduce costs and attract private sector participation in clean energy infrastructure.
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