Dehradun: Uttarakhand has taken a major step to strengthen its electricity supply system by approving four Battery Energy Storage System (BESS) projects with a combined capacity of 76 MW/190 MWh. The projects will come up at Dhakrani, Khatima, Pathri and Tiloth and are intended to help bridge the gap between electricity demand and availability during peak hours.
The Uttarakhand Electricity Regulatory Commission (UERC) has conditionally approved the tariffs and draft Battery Energy Storage Purchase Agreements for the four projects. The approvals follow tariff-based competitive bidding conducted by Uttarakhand Jal Vidyut Nigam Limited (UJVNL).
The projects are designed to store electricity when relatively cheaper solar and hydropower are available and supply it to the grid when demand rises. This could reduce the state’s dependence on expensive power purchases from the national electricity exchange during peak hours.
Four Battery Projects Across Uttarakhand
The four BESS projects will be developed across four districts, with three projects going to Patanjali Renewable Energy Pvt. Ltd. and one to Armee Infotech Ltd.
The project allocation is:
- Dhakrani, Dehradun: 30 MW/75 MWh – Patanjali Renewable Energy
- Khatima, Udham Singh Nagar: 15 MW/37.5 MWh – Patanjali Renewable Energy
- Pathri, Haridwar: 16 MW/40 MWh – Patanjali Renewable Energy
- Tiloth, Uttarkashi: 15 MW/37.5 MWh – Armee Infotech
UERC’s official 2026 orders list the projects at these locations and confirm their respective capacities.
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How the Companies Were Selected
The projects were awarded through an open and transparent e-tendering process conducted by UJVNL. Patanjali Renewable Energy quoted the lowest tariff for all four projects.
However, the tender conditions allowed a single company to receive a maximum of two projects. As a result, Patanjali retained the Dhakrani, Khatima and Pathri projects while the Tiloth project was offered to the L-2 bidder.
Armee Infotech Ltd., the L-2 bidder, agreed to undertake the Tiloth project at Patanjali’s lowest quoted tariff. The regulatory order was issued by a bench comprising UERC Chairman M.L. Prasad, Member (Law) Anurag Sharma and Member (Technical) Prabhat Kishor Dimri.
Uttarakhand Gets Lower Tariffs Than Delhi and Punjab
The approved tariffs for the four projects are lower than tariffs cited for comparable projects in Delhi and Punjab.
The project-wise tariffs are:
- Dhakrani: ₹2,69,832 per MW per month
- Pathri: ₹2,79,501 per MW per month
- Khatima: ₹2,79,782 per MW per month
- Tiloth: ₹2,80,000 per MW per month
For comparison, the commission cited a tariff of around ₹2.99 lakh per MW per month for a 12.5 MW project in Delhi. In Punjab, recently approved tariffs were reported in the range of ₹3.35 lakh to ₹3.44 lakh per MW per month.
The tariff comparison indicates the competitive bidding process has resulted in relatively lower storage costs for the Uttarakhand projects.
Centre to Provide ₹18 Lakh Per MWh Financial Support
The projects are being implemented with support under the Central Ministry of Power’s Viability Gap Funding (VGF) scheme through the Power System Development Fund.
Under the scheme, Uttarakhand was allocated 500 MWh of capacity, of which 250 MWh is being implemented through UJVNL. The Centre will provide financial assistance of ₹18 lakh per MWh, to be released in three instalments.
The VGF support is intended to make large-scale energy storage projects financially viable while helping states add storage capacity to their electricity systems.
How the Mega Battery Banks Will Work
The BESS facilities will essentially act as large electricity storage banks.
During normal hours and daytime periods, when relatively cheaper solar and hydropower are available, the batteries will be charged through the Uttarakhand Power Corporation Limited (UPCL) system.
The stored electricity will then be supplied to the grid during the 6 pm to 9 pm peak-demand period, when electricity consumption typically rises.
This arrangement is expected to help Uttarakhand reduce its need to purchase expensive electricity from the national power exchange during peak hours. It is also intended to support grid stability and reduce the risk of grid tripping.
Why Energy Storage Matters for Uttarakhand
Uttarakhand has significant hydropower resources and is also integrating renewable energy into its electricity system. However, electricity availability does not always match the timing of demand.
Battery storage can help address this mismatch by shifting available electricity from periods of lower demand to periods when the grid needs additional supply.
The four projects, together providing 190 MWh of storage capacity, will therefore add an important energy-storage layer to the state’s power infrastructure. Industry reporting also confirms that UERC has adopted the competitively discovered tariffs for the four projects.
For consumers, the immediate significance lies in improving the system’s ability to manage peak demand. For the state power system, the projects can provide greater flexibility in using renewable electricity and managing periods when demand exceeds locally available supply.
The move marks Uttarakhand’s shift towards using large-scale battery storage as part of its power-management strategy. If implemented as planned, the four BESS projects could strengthen peak-hour supply, improve grid management and reduce reliance on costly short-term electricity purchases.
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