Power to Be Stored in Batteries, Relief for UPCL and Cheaper Rates for Consumers

In a major step to reduce power costs, the Uttarakhand Electricity Regulatory Commission (UERC) has released a draft of the Renewable Energy and Non-Fossil Fuel Co-Generation Supply Regulations (Second Amendment) 2025, inviting public suggestions till October 3. This will enable electricity to be stored in batteries within the state, ensuring cheaper supply during peak hours.

Currently, Uttarakhand Power Corporation Limited (UPCL) is forced to buy costly power from the market during evening peak hours, sometimes at rates as high as ₹12 per unit. Under the new system, UPCL will procure cheaper electricity during the day, store it in Battery Energy Storage Systems (BESS), and release it in the evening at around ₹5 per unit, bringing huge relief to consumers.

The UERC’s earlier regulations were issued in 2023, but with UJVNL and UPCL introducing battery storage systems, amendments are now being made. As per the revised rules, UPCL will be the nodal agency for inviting tenders and determining the practicality of storage projects, whether implemented by UJVNL or any other government body.

Institutions installing battery storage will now receive an incentive of five paise per unit on tariffs, compared to the earlier eight percent. This shift is expected to benefit both UPCL and consumers, ensuring steady supply and protecting households from rising energy bills.

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