SJVN Awards 1500 MWh Battery Energy Storage Projects in Uttar Pradesh to Patel Infrastructure and EnerGrid
In a landmark move to enhance grid stability and boost clean energy infrastructure, SJVN Limited has successfully awarded a 375 MW/1500 MWh standalone Battery Energy Storage System (BESS) project in Uttar Pradesh. The winners of this competitive auction are Patel Infrastructure Limited and EnerGrid, two major players in India’s rapidly growing energy storage sector.
This blog takes a comprehensive look at this development, the key players involved, and what it means for the future of battery energy storage systems in India.
A Major Milestone for Battery Energy Storage in India
India’s transition to a cleaner and more resilient energy grid has taken a significant leap forward with SJVN’s latest initiative. The tender for 1500 MWh of battery storage capacity was launched under the Viability Gap Funding (VGF) scheme, an effort by the government to bridge the financial viability gap for large-scale renewable energy and storage projects.
The auction was conducted under a tariff-based competitive bidding process, which encourages cost-efficiency while attracting strong participation from the private sector.
Details of the Awarded Projects
Capacity Allocation
Energy storage capacity of 1500 MWh, divided into two sizable project blocks, was required for SJVN’s auction. The results of the bidding process are as follows:
- Patel Infrastructure Limited: Awarded 187.5 MW / 750 MWh
- EnerGrid: Awarded 187.5 MW / 750 MWh
Together, these two companies will develop and operate the entire 375 MW / 1500 MWh capacity under the Build-Own-Operate (BOO) model for a period of 20 years.
Tariff Bids
· The monthly tariff provided by Patel Infrastructure Limited was ₹3.59 lakh per
· MW.EnerGrid closely followed with ₹3.5999 lakh per MW per month
These highly competitive tariffs show growing confidence in the viability and scalability of grid-scale battery storage systems in India.
About the Tender and Bidding Guidelines
Tender Launch and Scope
SJVN Limited floated the Request for Selection (RfS) document in February 2025, inviting developers to bid for standalone battery storage projects in Uttar Pradesh. The key highlights of the tender were:
- BOO Model: Developers will build, own, and operate the BESS facilities.
- 500 MWh is the minimum bid size (125 MW with a 4-hour storage period).
- Maximum Bid Size: 750 MWh (187.5 MW with 4-hour storage duration)
- Total Tender Capacity: 1500 MWh
- Contract Duration: 20 years
The energy stored in these systems will be procured by SJVN and supplied to the Uttar Pradesh Power Corporation Limited (UPPCL), thereby directly supporting the state’s power distribution and grid balancing needs.
Significance of the Project
Enhancing Grid Stability
One of the main drivers behind this initiative is the need for grid stability in a rapidly electrifying state like Uttar Pradesh. With rising renewable energy penetration, the state faces challenges in managing intermittent power from sources like solar and wind. Battery storage provides a reliable solution by storing excess energy and discharging it during peak demand or low-generation periods.
Boosting Clean Energy Integration
This 1500 MWh BESS project is designed to support the integration of renewable energy into the grid, ensuring smooth power supply and reducing reliance on fossil fuel-based peaker plants. As India moves towards its 2030 renewable energy targets, battery storage is set to become an indispensable component of the national grid.
Government Support Through Viability Gap Funding (VGF)
The VGF scheme plays a crucial role in enabling large-scale clean energy infrastructure by providing financial support to bridge the initial cost gap. Particularly at this magnitude, BESS projects require a significant amount of finance. By offering VGF and implementing a transparent bidding process, the government ensures:
- Lower cost to consumers
- Greater private sector participation
- Faster adoption of cutting-edge storage technologies
Meet the Winners: Patel Infrastructure and EnerGrid
Patel Infrastructure Limited
A well-established name in infrastructure development, Patel Infrastructure has diversified into energy storage, leveraging its strong engineering background. Winning this bid is a significant step in their clean energy journey, and it demonstrates their capability to take on complex, large-scale energy infrastructure projects.
EnerGrid
Known for its inventive energy storage and smart grid solutions, EnerGrid is gradually emerging as a major force in India’s BESS market. Their aggressive bid and technological expertise underscore their long-term commitment to India’s renewable energy goals.
Why Battery Energy Storage Systems Are the Future
BESS technology is revolutionizing the way power is generated, stored, and distributed. Here are some reasons why battery storage is essential for India’s energy transition:
- Grid Flexibility: BESS helps balance load fluctuations, especially during renewable generation dips.
- Energy Arbitrage: Stores cheap, excess power during off-peak hours and discharges during peak demand.
- Renewable Support: Makes solar and wind more reliable by mitigating intermittency.
- Fast Response: Reacts quickly to grid disturbances, unlike traditional generation.
As battery costs continue to decline and performance improves, such projects will become more mainstream across India.
Impact on Uttar Pradesh’s Power Sector
With a population of over 200 million, Uttar Pradesh is India’s most populous state and has one of the highest electricity demands. When these BESS projects are implemented successfully, they will:
- Enhance power reliability
- Reduce load shedding and outages
- Support UPPCL’s efforts to modernize the grid
- Promote sustainable urban and rural electrification
Looking Ahead: A Model for Future Energy Projects
This project serves as a blueprint for future battery storage tenders in India. By combining government support (VGF), clear policy direction (BOO model), and private sector innovation, India is building a sustainable framework for next-generation energy systems.
As other states follow suit, and with additional tenders expected in 2025 and beyond, India could become a global leader in battery storage deployment.
Final Thoughts
The award of the 1500 MWh battery storage projects in Uttar
Pradesh marks a pivotal moment in India’s clean energy journey. It showcases
how public-private partnerships, innovative policy mechanisms, and
competitive bidding can drive cost-effective and scalable energy solutions.
With companies like Patel Infrastructure and EnerGrid
leading the charge, the future of battery energy storage in India looks
promising, not just for grid reliability, but for achieving long-term climate
and energy goals.