The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the Uttar Pradesh New and Renewable Energy Development Agency’s (UPNEDA) revised tender to supply 3,205 MW of solar power to Uttar Pradesh Power Corporation (UPPCL) under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM- KUSUM) Component C2.

Component (C-2) under the KUSUM program includes solarization of segregated agriculture feeders in the state.

The Commission directed UPNEDA to incorporate multiple changes in the revised tender and proceed with the bidding. UPNEDA must also submit the final bidding document to the Commission.

Background

UPNEDA had revised a tender for procuring solar power under the PM-KUSUM program after receiving bids for 34.8 MW out of the 150 MW capacity project in an earlier tender.

The revised tender involved UPPCL procuring 3,205 MW of solar power under PM KUSUM.

Subsequently, changes were made to the tender’s project commissioning date, progress report, commissioning/schedule delivery date, synchronization, commissioning and commercial operation of the power purchase agreement, performance bank guarantee, delays in commissioning, financial eligibility criteria, construction and development of the project under the power purchase agreement (PPA), and bid evaluation.

UPNEDA informed the Commission that land has been identified only for 96 out of the 940 project substations.

UPERC mandated that farmers must be compensated and provided lease rent payments. The land lease clause must be restructured to protect farmers’ interests and retain a performance bank guarantee.

UPNEDA made the following deviations to the bidding document:

• Restructuring the land lease agreement to adjust the lease rent against the RESCO developer’s bill.
• Providing opportunity to the lowest district, circle, and distribution company-level bidders if no bids are received for any substation.
• Removing the cap on the number of substations awarded to bidders and including a performance bank guarantee valid for 12 months.
• Mandating UPPCL to buy power from the project up to 10% above the minimum CUF.
• Removing the e-reverse auction and adopting bid evaluations and a lottery system for the same quoted tariff.

Commission’s Analysis

Taking note of the revised tender, the Commission asked UPNEDA to incorporate the following changes:

• Include the approved ceiling tariff of ₹2.99 (~$0.034)/kWh for the entire project capacity.
• Mandate a minimum capacity utilization factor of 19%.
• Mandate UPPCL to verify the substations and their capacities one week before the final submission date.
• Ensure UPNEDA secures public land availability for the projects before the final submission date and conducts trial bidding to ensure hassle-free bidding.
• Include definitions of terms—repowering and commissioning committee within the tender document and keep the consultation period at 60 days per the PPA.

In October 2024, UPERC approved the power sale agreement for the Noida Power Company to procure from intermediary procurer SJVN 100 MW firm and dispatchable power from inter-state transmission system-connected renewable energy projects with energy storage systems developed by Tata Power Renewable Energy.

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