The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the power purchase agreements (PPAs) and discovered tariffs for 129.2 MW of solar projects under Component C-2 of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).

The discovered tariff of the projects in two batches ranged from ₹2.48 (~$0.027)/kWh to ₹2.99 (~$0.033)/kWh, and from ₹2.54 (~$0.0281)/kWh to ₹2.99 (~$0.033)/kWh.

Background

Uttar Pradesh Power Corporation (UPPCL) had signed 46 PPAs across the two batches, with 18 for one batch and 28 for the other. It had approached the Commission along with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) to approve the PPAs and the discovered tariffs.

UPNEDA had tendered a total of 2.5 GW of decentralized solar systems under the PM KUSUM Component C-2 program to solarize segregated agricultural feeders. The tendered capacity included two batches with a cumulative capacity of 3,205 MW, later changed to 2,553.5 MW.

Each of these tenders attracted 235 bidders. UPNEDA selected 153 bidders in both cases, comprising 566 substations, with a capacity of 1,686.4 MW.

The discovered tariffs for the first batch ranged from ₹2.48 (~$0.027)/kWh to ₹2.99 (~$0.033)/kWh, and for the second batch ranged from ₹2.54 (~$0.0281)/kWh to ₹2.99 (~$0.033)/kWh .

UPPCL signed 18 PPAs with six selected bidders for the first batch, totaling 56.7 MW.

It signed 28 PPAs with the successful bidders of the second batch for a capacity of 72.4 MW.

The petitioners submitted that the tariffs were discovered through a transparent and competitive bidding process. They also highlighted that 436 substations remained unallocated, and that their petitions covered only the PPAs ready for approval.

Commission’s Analysis

The Commission acknowledged that the bidding process was competitive. It also noted that it had already approved the bidding documents for the projects.

It approved the discovered tariffs and the PPAs for both batches.

UPERC also advised the petitioners to take proactive steps to help developers complete projects on time.

In November this year, UPERC adopted the tariffs discovered through the competitive bidding process for 25 solar projects totalling 82.6 MW under the PM-KUSUM program.

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