Uttarakhand Proposes 2025 Draft Renewable Energy Regulations Including Battery Storage Integration

The Uttarakhand Electricity Regulatory Commission (UERC) has released a draft notification proposing amendments to its renewable energy tariff regulations. Issued in September 2025, the draft seeks to update the existing UERC regulations from 2023, with a particular focus on integrating Battery Energy Storage Systems (BESS) into the state’s power grid. The proposed regulations, to be known as the UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) (Second Amendment) Regulations, 2025, will apply to all renewable energy generating stations commissioned after the new rules take effect.

The regulations are set to cover a wide variety of renewable energy technologies, including wind, solar, small hydro, biomass, and municipal solid waste projects. A major feature of the new rules is the inclusion of Battery Energy Storage Systems. The draft defines important terms such as “Battery Energy Storage System” and “Charge Ramp Rate” to provide clarity for developers and operators. According to the proposed regulations, the useful life of a BESS will be considered 12 years, with the option to extend it by an additional five years at a reduced tariff.

The UERC has outlined that distribution licensees will invite competitive bids for power procurement from wind, solar, and BESS projects. The regulations specify that the generic tariffs included in the document will act as a maximum ceiling, aiming to ensure cost-effective procurement while providing flexibility to project developers. For projects commissioned before the new regulations, certain existing provisions will continue to apply, including specific tariffs for solar and small hydro plants.

Technical parameters for various projects have also been updated in the draft. For example, capital costs and other expenses are detailed for Canal Bank and Canal Top Solar PV plants. Specific parameters for BESS are also set out, including a capital cost of Rs. 250 lakh per MWh and a normative availability of 95 percent. These measures are designed to standardize project costs and technical expectations across the state.

To ensure proper use and implementation of BESS, the regulations require distribution licensees, in consultation with the State Load Despatch Center (SLDC), to prepare a detailed procedure for optimal use within three months of the notification. This approach is intended to make sure BESS systems are effectively integrated into the grid, supporting grid stability and efficient energy management.

The UERC has also retained the authority to issue further orders as needed to address any difficulties in implementing the new rules, particularly in relation to BESS projects. This provision acknowledges that battery storage technology is evolving rapidly and allows the commission to adjust its regulations to keep pace with technological advancements.

Overall, the proposed amendments aim to create a clear regulatory framework for renewable energy projects in Uttarakhand, while promoting the integration of new technologies like BESS. By specifying tariffs, technical parameters, and operational guidelines, the UERC seeks to encourage investment in renewable energy and ensure the reliable supply of electricity across the state. The draft regulations are an important step in supporting Uttarakhand’s transition toward a more sustainable and technologically advanced power sector.

The move reflects the growing importance of energy storage in managing renewable energy generation, helping balance supply and demand, and enhancing grid stability. With these amendments, Uttarakhand is positioning itself to encourage innovation and cost-effective renewable energy solutions for the future.