UPERC Approves Amended PPAs for 500 MW of Solar Projects

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the amended power purchase agreements (PPA) along with the PPAs and tariffs for procuring 500 MW of solar power.

A petition had been filed jointly by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and Uttar Pradesh Power Corporation Limited (UPPCL) for the approval of the PPAs, and the adoption of tariffs discovered through a competitive bidding process.

Background

The UPPCL, the procurer, had provided its consent in August 2018 for procuring 500 MW of solar power with the ceiling tariff of ₹3.25 (~$0.045)/kW. The final copies of PPA and request for procurement (RfP) were submitted to the commission in October 2018.



Based on the approved RfP and Model PPA, 12 bids from seven bidders with a cumulative capacity of 750 MW were received.

The final tariffs received for 500 MW capacity ranged between ₹3.17 (~$0.04)/kWh and ₹3.21 (~$0.045)/kWh.

The bid project capacity offered to the National Thermal Power Corporation (NTPC) and Maheswari Mining and Energy Pvt Ltd, were 140 MW and 20 MW respectively, and the final tariff offered was ₹3.17 (~$0.04)/ kWh.

The project capacity offered to Mahoba Solar was 50 MW; to Maheswari Mining and Energy PVT Ltd was 20 MW.

The tariff for both the bidders was ₹3.19 (~$0.044)/kWh, and a tariff rate of ₹3.20 (~$0.045)/kWh was offered to Sukhbir Agro Energy Ltd for a project capacity of 50 MW.

Similarly, Talettutai Solar Projects Five Pvt Ltd and Eden Renewable were offered a project capacity of 50 MW each and the final tariff recorded was at the rate of ₹3.21 (~$0.045)/kWh for a period of 25 years.

As the 450 MW capacity got requisitioned among nine bidders, there were three bids each with 100 MW capacity with the same tariff of ₹3.23 (0.0451)/kWh from Giriraj Renewables Pvt Ltd. As per the provisions of the RfP, a balance of 50 MW requisitioned capacity allocation was proposed to Giriraj Renewables.

In November 2018, the committee approved the allocation of 500 MW capacity on the tariffs received ranging from ₹3.17 (~$0.04)/kWh to ₹3.23 (0.0451)/kWh. This was later approved by the state cabinet.

The bidding companies were then asked to deposit the required amounts to enter the PPA with UPPCL.

The matter was heard on August 22, 2019.

On September 4, 2019, UPNEDA submitted the signed and amended PPAs to make them congruous with the draft PPA which was earlier approved by the commission.

In October 2018, Mercom had reported that UPERC had approved an RfP and a power purchase agreement for 500 MW of grid-connected solar projects put forth by UPNEDA. UPNEDA had sought approval of ceiling tariff of ₹3.25 (~$0.044)/kWh for the tender along with the revised RfP and PPA.

In January 2019, UPNEDA floated a tender for 500 MW of grid-connected solar projects with an upper tariff ceiling of ₹3.05 (~$0.043)/kWh.