The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved 52 solar power purchase agreements (PPAs) totaling 143.8 MW under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Component C-2 program.

The approvals cover two project batches. The first batch covers 25 projects with a total capacity of 61.6 MW. The second batch consists of 27 projects totaling 82.2 MW.

The Commission has also adopted the individual tariffs, which range from ₹2.84 (~$0.031)/kWh to ₹2.99 (~$0.033)/kWh, enabling the Uttar Pradesh Power Corporation (UPPCL) to procure solar power for the segregated agriculture feeders.

Background

The case originates from the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) issuing bids for feeder-level solarization, supported by Viability Gap Funding.

The request for selection was issued for 2553.5 MW. Changes to feeder capacities, including the modification of Saijani substation capacity (MVVNL, Badaun) from 2 MW to 5.5 MW and the addition of another 0.5 MW substation, were made in December 2024.

A total of 235 bidders participated, offering bids for 494 substations covering 1,529.1 MW, with additional offers for 72 substations for 157.3 MW.

Overall, 566 substations with a capacity of 1,686.4 MW received letters of award between February and July 2025. The tariffs discovered ranged from ₹2.20 (~$0.024)/kWh to ₹2.99 (~$0.033)/kWh.

UPERC raised queries about discrepancies in the district names for some substations, mainly in Amroha and Moradabad. UPPCL clarified that district entries were corrected during verification because Amroha was earlier part of the Moradabad district.

Commission’s Analysis

The Commission stated that the bidding and evaluation processes complied with Section 63 of the Electricity Act, 2003, which mandates tariff adoption through transparent competitive bidding.

It relied on the bid evaluation committee’s conformity certificates and affidavits confirming that the executed PPAs are identical to the approved draft PPAs.

The Commission also reviewed the clarifications on a district-level naming discrepancy between Moradabad and Amroha noted during hearings. It reiterated that incorrect district classification can affect L1 tariff benchmarking and, therefore, requires stringent verification.

The regulator noted that implementation progress under Component C-2 remains dependent on UPPCL’s timely connectivity approvals and infrastructure readiness.

Project Approval: 61.6 MW

UPERC approved 25 PPAs totaling 61.6 MW and adopted tariffs ranging from ₹2.88 (~$0.032)/kWh to ₹2.99 (~$0.033)/kWh.

The Commission directed UPNEDA and UPPCL to expedite bay allocation, connectivity agreements, and completion timelines to ensure that the cost benefits arising from the tariffs translate to lower power purchase expenditure.

Project Approval: 82.2 MW

Another 27 PPAs, with a total capacity of 82.2 MW, received final regulatory approval, and the tariffs discovered during bidding, ranging from ₹2.84 (~$0.031)/kWh to ₹2.99 (~$0.033)/kWh adopted.

The Commission acknowledged that correcting the district identification for the Kafoorpur substation did not alter the competitive status, as only one bidder participated for the location.

Recently, UPERC approved the procurement of 300 MW of wind–solar hybrid power by Uttar Pradesh Power Corporation from NHPC at the tariff of ₹3.56 (~$0.040)/kWh, including a trading margin of ₹0.07 (~$0.00079)/kWh.

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