The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved Noida Power Company’s (NPCL) bidding documents for procuring power from 80 MW/320 MWh standalone battery energy storage systems (BESS) to be set up in Greater Noida.

The Commission approved the bidding documents, noting that no capital subsidy will be available for the proposed arrangement.

Background

NPCL had filed the petition under Section 86(1)(b) of the Electricity Act, 2003, seeking approval to procure power from 4 × 20 MW/320 MWh standalone BESS projects through tariff-based competitive bidding for 12 years. The procurement is in line with the Ministry of Power’s guidelines issued on March 10, 2022, under Section 63 of the Act.

In an earlier order dated March 6, 2026, the Commission allowed modifications to the tender documents. It also directed the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) to submit an affidavit on the applicability of the capital subsidy for BESS under the Uttar Pradesh Solar Energy Policy, 2022.

UPNEDA submitted that the policy was originally framed and notified in Hindi by the state government, and that the English version was issued only for facilitative purposes. It said the original Hindi text is the authoritative and controlling version of the policy.

UPNEDA said Clause 11.2 of the English translation provides that capital subsidy is available for standalone battery storage systems energized by solar energy only for the sale of power to distribution licensees or UPPCL. However, it submitted that the original Hindi policy uses the expression “UPPCL/Vidyut Vitran Nigam,” indicating that the subsidy was intended only for UPPCL and its subsidiary corporations.

UPNEDA also submitted that Clause 4.9 of the policy defines DISCOMs as distribution companies or utilities in Uttar Pradesh, including Madhyanchal Vidyut Vitran Nigam, Dakshinanchal Vidyut Vitran Nigam, Paschimanchal Vidyut Vitran Nigam, Purvanchal Vidyut Vitran Nigam, and KESCo. It said these utilities operate under the umbrella of and are controlled by UPPCL.

According to UPNEDA, the expression “Distribution Licensee/UPPCL” in the translated policy must be interpreted in the context of the policy’s structure and objective. It said the reference was to the state distribution framework under UPPCL and not to all distribution licensees in the state.

UPNEDA also submitted that the solar policy is a state fiscal incentive policy framed primarily to support state power sector utilities and the distribution framework operating under UPPCL. It said that if the state government intended to extend subsidy benefits to all distribution licensees, the policy would have used broader terminology.

UPNEDA stated that the capital subsidy sought by NPCL under the policy could not be granted at this stage.

Commission Analysis

The Commission considered UPNEDA’s submission on the scope of the capital subsidy under the Uttar Pradesh Solar Energy Policy, 2022.

It accepted the position that no subsidy would be available for NPCL’s proposed BESS procurement arrangement.

The Commission approved the bidding documents submitted by NPCL on April 21, 2026, on the basis that the project would proceed without capital subsidy.

The Commission earlier adopted a tariff determined through competitive bidding for a 375 MW/1,500 MWh standalone BESS to be set up in Uttar Pradesh under the Viability Gap Funding program.

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