Patel Infrastructure and Enerica Infra 3 (EnerGrid) won SJVN’s auction to develop 375 MW/1,500 MWh standalone battery energy storage system (BESS) in Uttar Pradesh under the build-own-operate model.

Patel won 187.5 MW/750 MWh at a tariff of ₹359,000 (~$4,199)/MW/month. Enerica also bagged 187.5 MW/750 MWh at a tariff of ₹359,999 (~$4,211)/MW/month.

The tender was issued in February this year.

The BESS will be eligible for Viability Gap Funding (VGF) support of up to ₹2.7 million (~$31,598)/MWh or 30% of the capital cost, whichever is lower.

Developers must design, finance, engineer, procure, construct, operate, and maintain the BESS project. They must ensure compliance with grid standards, safety norms, and performance benchmarks. Bidders must have prior experience in battery storage.

They must also ensure that the BESS is available for one operational cycle of four hours daily, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC round-trip efficiency of 85% every month.

Developers must employ commercially established and operational technologies that are compliant with the guidelines specified in codes and standards to minimize technology risks.

They must commission the projects within 18 months of signing the battery energy storage purchase agreement.

SJVN will enter into a 20-year battery energy storage purchase agreement with the selected developers.

The interconnection point is specified at the Uttar Pradesh Power Transmission Corporation’s 400kV/220kV Garautha Substation in Jhansi District, with power being injected into the state transmission utility network. Developers must obtain connectivity approval.

The Ministry of Power recently announced the second tranche of VGF to support BESS development. Under this tranche, a VGF of ₹1.8 million (~$21,065)/MWh will be provided to support the development of 30 GWh of BESS capacity.

The Central Electricity Authority estimates the need to deploy 37 GWh BESS capacity by 2027. This requirement is expected to increase to 236 GWh by 2031-2032.

In March 2025, the Ministry directed all states and implementing agencies to award all BESS contracts by June 2025, enabling the VGF program to be completed by May 2027.