UERC Issues Second Amendment To Renewable Tariff Regulations 2023, Adds Framework For BESS Integration In Uttarakhand

The Uttarakhand Electricity Regulatory Commission has issued a new notification dated November 27, 2025, introducing the Second Amendment to the 2023 Regulations governing tariffs and supply terms for renewable energy and non-fossil fuel–based co-generation projects. The amendment updates several important provisions and expands the framework to include Battery Energy Storage Systems, reflecting the growing role of storage technologies in the state’s power sector.

The amended regulations will remain in force for five years from the start of the principal regulations. One of the major changes is the expansion of the scope to include all renewable energy–based generating stations and Battery Energy Storage Systems commissioned after the notification date. These projects may supply electricity to distribution licensees or local rural grids, provided they meet eligibility criteria. The responsibility of identifying suitable locations and assessing the benefits of storage projects lies with the distribution company, although proposals from other entities may be considered with the utility’s approval. Existing renewable projects commissioned before the new regulations will continue with their earlier tariffs, but certain updated provisions will still apply.

The amendment also clarifies tariff-related aspects. The generic tariff specified for wind, solar, and storage technologies will act as the maximum ceiling. Distribution licensees must procure power through tariff-based competitive bidding, signing power purchase agreements only with the lowest bidders. For government-implemented canal-bank, canal-top, or ground-mounted solar projects, the regulations allow a margin of up to four percent of the lowest bid, provided the total tariff does not exceed the generic tariff. For storage projects implemented through an intermediary agency, a trading margin of five paise per unit is allowed.

Several new definitions have been added, including a detailed definition of Battery Energy Storage Systems. The document explains concepts such as charge ramp rate, discharge ramp rate, and round-trip efficiency. It also specifies how the date of commercial operation should be determined for solar and storage projects. For BESS, commissioning requires successful testing, compliance with technical standards, installation of metering equipment within seven days of application, and demonstration of performance as per the distribution licensee’s technical requirements.

The useful life of a BESS project is set at 12 years, with an optional five-year extension at half the original tariff. Depreciation norms have also been revised, with storage systems allowed a rate of 7.5 percent per year. The control period for tariff determination remains five years, but benchmark capital costs for various renewable technologies—including BESS—may be reviewed annually. The amendment also introduces technology-specific parameters for storage, such as a capital cost of Rs. 250 lakh per MWh, 1.25 percent O&M expenses in the first year with annual escalation, 95 percent normative availability, and 2.5 percent annual degradation.

A formula for calculating annual BESS availability has been added, along with guidelines on depth of discharge and recommended daily charge–discharge cycles. The regulations instruct distribution companies to prepare detailed procedures for scheduling, charging, discharging, and cost optimization within three months. A new tariff table shows the levelized fixed charges for BESS at Rs. 5.78 per kWh. The Commission has also granted itself additional powers to resolve difficulties related to BESS projects, particularly when new technologies or government policies require adjustments.