Uttar Pradesh Modifies Clauses in the 500 MW Solar Tender

Paving the way for the development of 500 MW of grid-connected solar projects in the state, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has accepted the changes proposed by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) in the request for selection (RfS) and power purchase agreement (PPA) of the projects.

UPNEDA had tendered the capacity in January 2019. The Uttar Pradesh Power Corporation Limited (UPPCL) has agreed to procure the entire power generated from the proposed grid-connected solar PV projects.

UPNEDA had petitioned the commission to approve the ceiling tariff of ₹3.05 (~$0.043)/kWh for the tender, allow the proposed solar PV project to be set up on the land or waterbody identified by the successful bidder, and set the minimum project capacity of 5 MW at a single location.

UPNEDA had also requested the state commission to approve the financial closure period of 12 months for the solar PV projects.



The UPERC observed that the ceiling tariff set by UPNEDA is in line with the rates discovered in recent auctions and that the UPPCL is willing to procure at this tariff.

The commission has also approved the minimum project capacity at a single location, but it did not approve the financial closure timeline of 12 months for the solar PV projects. Instead, the UPERC has set a financial closure timeline of eight months. According to the UPERC, a timeline of 12 months for financial closure leads to delays in project execution and then petitions for extensions.

UPNEDA has revised the ceiling tariff by five paise (~$0.00071)/kWh when compared to the previous ceiling tariff of ₹3.10 (~$0.0424)/kWh that was set for the 550 MW tender issued in October 2018. In that auction, the lowest discovered bid was ₹3.02 (~$0.04306)/kWh.

Image credit: Azure Power