UPERC Reviews NPCL Plan to Procure 80 MW/320 MWh Battery Storage to Address Rising Power Deficit in Greater Noida

The Uttar Pradesh Electricity Regulatory Commission (UPERC) recently conducted a hearing on February 24, 2026, regarding a petition filed by Noida Power Company Limited (NPCL) seeking approval to procure power from a standalone Battery Energy Storage System (BESS). The proposed project will have a total capacity of 80 MW / 320 MWh and is planned to be deployed across multiple locations in Greater Noida. NPCL has proposed to operate the project under a 12-year contract through a competitive bidding process.

According to the petition, the initiative is aimed at addressing the growing electricity demand and expected power deficit in NPCL’s licensed area. Data presented during the hearing from the Central Electricity Authority (CEA) indicates that the peak power deficit in Greater Noida is expected to rise significantly in the coming years. The current projections estimate a deficit of around 532 MW in the financial year 2027–28. However, this gap is expected to expand rapidly and may cross 1,500 MW by the financial year 2033–34. In response to this anticipated demand growth, NPCL is exploring the use of battery storage systems to ensure grid reliability and stable power supply in the region.

The proposed BESS procurement plan has been divided into two separate tenders. Each tender will cover 40 MW / 160 MWh of storage capacity and will be deployed across various substation locations including BZP, Jaun Samana, Tech-zone IT City, and KP-5. These battery storage systems are expected to support peak demand management and enhance energy security for consumers in Greater Noida.

A significant aspect of the first tender involves provisions related to state subsidy support. Under the Uttar Pradesh Solar Policy 2022, standalone battery systems that are energized exclusively through solar power are eligible for a capital subsidy of ₹2.50 crore per MW. NPCL had initially proposed to apply this subsidy only to the first tender, which specifically involves solar-charged battery systems.

During the hearing, however, the Commission raised questions regarding the potential economic benefits for consumers. The Commission members, including Chairman Arvind Kumar and Member Sanjay Kumar Singh, advised NPCL to examine the possibility of availing the state subsidy for both tenders instead of limiting it to one. The Commission emphasized that bidders should have complete clarity regarding subsidy availability before the bidding process begins.

To address this issue, NPCL has been directed to consult with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), the state’s nodal renewable energy agency. The discussion will focus on whether the subsidy can also be extended to battery storage systems that are charged using inter-state solar power sources.

During the proceedings, NPCL also acknowledged that some clauses in its initial tender documents require revisions. The Commission has permitted the company to submit updated tender documents along with a detailed explanation of any deviations from standard guidelines.

The regulatory body has given NPCL 15 days to submit a response addressing these observations. The case, officially registered as Petition No. 2305 of 2025, remains under consideration, and the next hearing has been scheduled for April 23, 2026, when the Commission will review the revised proposals and subsidy-related clarifications.