UPERC Dismisses Petition Seeking Regulatory Framework for BESS Integration with Thermal Power Stations

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has dismissed a petition filed by U.P. Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) seeking an enabling regulatory framework for integrating Battery Energy Storage Systems (BESS) with thermal power stations.

The petition,sought regulatory intervention to facilitate the recognition, integration and tariff treatment of BESS deployed alongside thermal generating stations under the Uttar Pradesh Electricity Regulatory Commission (Terms and Conditions of Generation Tariff) Regulations, 2024.

The petitioner argued for a framework that would provide appropriate regulatory and tariff treatment for BESS associated with thermal power plants, with the objective of bringing Uttar Pradesh’s regulatory framework in line with provisions prescribed by the Central Electricity Regulatory Commission.

After considering the matter, UPERC observed that it may initiate the process of developing an enabling regulatory framework for the integration, recognition and tariff treatment of BESS with thermal generating stations. However, the Commission said such a framework would have to be considered after due consultation with stakeholders and through the appropriate regulatory process.

The Commission further clarified that a legislative or regulatory change cannot be introduced through the judicial side of the Commission by way of a petition. On this ground, the petition was dismissed in limine.

The decision does not rule out the development of a BESS framework for thermal power stations in Uttar Pradesh. Instead, the Commission has indicated that the issue could be taken up separately through a regulatory process involving consultation with stakeholders.

The development assumes significance as battery storage is increasingly being considered alongside conventional generation to improve flexibility, manage peak demand and support the integration of variable renewable energy into the electricity system. A formal framework covering the regulatory recognition and tariff treatment of such storage assets could provide greater clarity for generators and other stakeholders in the state.