UPERC Approves NPCL’s 80 MW/320 MWh BESS Procurement Bid, Denies Capital Subsidy Under UP Solar Policy

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has disposed of a petition filed by Noida Power Company Limited (NPCL) related to the procurement of power from a Standalone Battery Energy Storage System (BESS) project planned in Greater Noida, Uttar Pradesh. The project involves the development of a 4×20 MW / 320 MWh battery storage system at multiple locations through a tariff-based competitive bidding process for a period of 12 years.

NPCL had approached the Commission seeking approval for the power procurement arrangement and the associated bidding guidelines under the provisions of the Electricity Act, 2003. During the proceedings, the Commission reviewed the bidding documents and allowed certain modifications. It also directed the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) to clarify whether the project would be eligible for capital subsidy benefits under the Uttar Pradesh Solar Energy Policy 2022.

In response, UPNEDA submitted an affidavit explaining that the original Uttar Pradesh Solar Energy Policy 2022 was notified in Hindi and that the Hindi version is the legally authoritative document. According to UPNEDA, while the English translation of the policy suggested that capital subsidies for standalone battery storage projects could be available for power sales to any “Distribution Licensee/UPPCL,” the original Hindi text specifically referred to “UPPCL/Vidyut Vitran Nigam.”

UPNEDA stated that the policy was designed to support state-owned power distribution companies operating under Uttar Pradesh Power Corporation Limited (UPPCL). These include Madhyanchal Vidyut Vitran Nigam Limited (MVVNL), Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL), Purvanchal Vidyut Vitran Nigam Limited (PVVNL), Paschimanchal Vidyut Vitran Nigam Limited (PuVVNL), and Kanpur Electricity Supply Company (KESCo). It argued that if the State Government intended to extend subsidies to private distribution licensees, the policy would have clearly mentioned such eligibility.

After examining UPNEDA’s submission, the Commission agreed that the policy incentives were intended for state-controlled utilities. As a result, it concluded that NPCL would not be eligible for capital subsidy support for the proposed battery storage project.

The Commission approved the final bidding documents submitted by NPCL on April 21, 2026, with the condition that no capital subsidy would be available for the project. Following this decision, the petition was officially disposed of. The order was issued in Lucknow by Chairman Arvind Kumar and Member Sanjay Kumar Singh.