The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the procurement of 1.2 GW of firm and dispatchable renewable power by Uttar Pradesh Power Corporation (UPPCL) through a long-term power sale agreement (PSA) with SJVN.

The approval covers power sourced from interstate transmission system (ISTS)-connected renewable energy projects integrated with energy storage systems and discovered through a tariff-based competitive bidding system.

The Commission also approved the PSA signed on February 20, 2025.

Background

UPPCL filed a petition seeking approval to procure renewable power to meet its long-term power requirements and comply with the renewable purchase obligation (RPO) targets.

The procurement was undertaken by SJVN, which was designated by the Ministry of New and Renewable Energy as the implementing agency.

Under the process, SJVN selected five renewable energy developers for a cumulative capacity of 1.2 GW, with tariffs in the range of ₹4.25 (~$0.047)-₹4.26 (~$0.048)/kWh. The projects comprise hybrid configurations of solar, wind, and battery assets located in Maharashtra, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, and Madhya Pradesh.

Last August, the Central Electricity Regulatory Commission (CERC) adopted the tariffs and held that the bidding process was conducted in a transparent manner.

Commission’s Analysis

UPERC examined whether it had jurisdiction over tariff adoption and approval of the procurement arrangement. It noted that the renewable energy projects were part of an interstate program, as power generation was spread across multiple states and connected through the ISTS network.

Relying on statutory provisions and judicial precedents, including the Supreme Court’s ruling in Energy Watchdog v. CERC, the Commission held that tariff adoption fell within the jurisdiction of CERC, and not the State Commission.

UPERC observed that CERC had already adopted the tariffs and validated the competitive bidding process. Its role, therefore, was limited to approving the procurement arrangement and the PSA from UPPCL’s perspective as a distribution licensee.

The Commission concluded that the procurement would help UPPCL meet future power demand, ensure compliance with escalating RPO targets, and promote large-scale integration of renewable energy with storage. Accordingly, it approved the procurement of 1.2 GW of renewable power at the CERC-adopted tariffs and ratified the PSA.

However, the Commission stated that if SJVNL fails to provide an irrevocable revolving letter of credit to renewable energy generators, its trading margin would be capped at ₹0.02 (~$0.00022)/kWh, in line with CERC Trading License Regulations.

Recently, UPERC approved the tariff of ₹7.71 million (~$85,634)/MW/annum for procuring power from 1,500 MW of pumped hydro storage projects by UPPCL. The Commission has also approved the pumped hydro storage power purchase agreement executed between UPPCL and JSW Neo Energy PSP Six on April 30, 2025.

Earlier, the state regulator had approved UPPCL’s petition to procure 375 MW/1,500 MWh of a standalone battery energy storage system capacity with viability gap funding support. The approval was granted for a 15-year period.

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