The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a petition by the Uttar Pradesh Power Corporation (UPPCL) to procure 2,000 MW of solar power.

Background

The government has targeted achieving 500 GW of non-fossil-based installed power capacity by 2030. UPPCL has proposed procuring 2,000 MW of solar power to contribute to this goal.

The tender documents were prepared per the Ministry of Power’s guidelines for tariff-based competitive bidding for solar projects.

These projects are expected to be set up on a build, own, operate, and maintain (BOOM) basis, with a 25-year PPA duration. The Uttar Pradesh Solar Policy 2022 will apply to these projects, providing various benefits to developers.

The Renewable Purchase Obligation for UPPCL has nearly doubled from 15% to 29.91% for FY 2024-25, necessitating an increase in renewable power procurement.

Failure to meet these obligations could result in penalties.

Commission’s Analysis

The Commission noted that the tender documents adhere to the Ministry of Power’s guidelines and the Uttar Pradesh Solar Policy 2022.

The Commission reviewed and approved certain deviations in the bidding documents.

The Commission allowed modifications in the e-reverse auction process to give preference to projects within the state, promoting local infrastructure development.

Regarding the selection of the bidder, the tender provides that at the time of the e-reverse auction, in case of a tie between two bidders, time preference will be given to the bidder quoting the most competitive tariff earlier than others.

However, a higher rank will be given to the bidder who will set up the project in Uttar Pradesh if there is still a tie.

The Commission also noted the bid evaluation methodology proposed by UPPCL aims to support the state’s solar policy by attracting developers to establish projects in Uttar Pradesh. The methodology emphasized competitiveness and transparency in the selection process, prioritizing the lowest tariffs.

The regulator considered the flexibility in the bidding process, such as allowing two attempts instead of three to ensure a minimum number of qualified bidders. This change aims to provide quicker resolution and greater flexibility in the competitive bidding process.

The Commission acknowledged the importance of compliance with RPO obligations and the penalties associated with non-compliance.

Recently, UPPCL invited bids to set up a 300 MW/1,200 MWh standalone Battery Energy Storage System.

In February, UPPCL invited bids from project developers to set up 2 GW of grid-connected solar power projects.