The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved NIDP Developers’ request for a tariff of ₹5.95 (~$0.07)/kWh for procuring 5 MW of bagasse-based round-the-clock (RTC) power between April 1, 2025, and July 31, 2025.

Bagasse is a fibrous by-product of crushed sugarcane.

The Commission also approved the power purchase agreement (PPA) for the electricity purchase. Additionally, it allowed the purchase of energy over 5 MW through the power exchange route via a trading license, with a trading margin of ₹0.02 (~$0.0002)/kWh.

Background

The petitioner, NIDP Developers, develops and manages data centers, infrastructure facilities, and other allied business activities such as electricity distribution.

The Commission had issued a distribution license to the petitioner for supplying electricity to certain regions. The petitioner’s immediate power requirement within the area of supply roughly ranged from 5.25 MW to 5.5 MW.

NIDP Developers issued a request for proposal (RfP) on February 12, 2025, to procure firm/RTC renewable energy (excluding solar, wind, or conventional energy) on a short-term basis (April 1, 2025, to July 31, 2025).

Kreate Energy was selected  after the bid examination and the e-reverse auction, with a tariff of ₹5.95 (~$0.07)/kWh. The power would be sourced from the Balrampur Chini Mills in Balrampur district, Uttar Pradesh.

The petitioner and Kreate Energy executed a PPA on April 4, 2025, having tied up 5 MW of energy.

The petitioner approached UPERC to approve the final accepted tariff.

It submitted that the RfP was published on the Discovery of Efficient Electricity Price platform, adhering to the Ministry of Power guidelines. The petitioner stated that the tender was published in two national newspapers in their Delhi and Mumbai editions, respectively. The petitioner also contended that procuring RTC power from a bagasse-based source would match its load curve requirement and help meet its renewable purchase obligations (RPOs).

It also petitioned the Commission to approve its PPA with Kreate Energy.

Commission’s Analysis

The Commission observed that the petitioner’s RfP was competitive and adhered to the Ministry of Power’s tender guidelines. It also noted that the agreed tariffs were economical.

Additionally, the Commission acknowledged that procuring bagasse-based power would help the petitioner meet its RPO requirements.

The Commission approved the tariff of ₹5.95 (~$0.07)/kWh and the PPA between the petitioner and Kreate Energy.

It also allowed the petitioner to procure energy over the tied-up 5 MW through the power exchange route via a trading license, with a trading margin of ₹0.02 (~$0.0002)/kWh.

The Commission directed the petitioner to explore power procurement opportunities through medium and long-term routes to meet its load demand, optimize power purchase cost, and meet its RPO efficiently.

In January this year, UPERC approved the Uttar Pradesh New and Renewable Energy Development Agency’s revised tender to supply 3,205 MW of solar power to Uttar Pradesh Power Corporation under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Component C2.

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