The Uttar Pradesh Electricity Regulatory Commission (UPERC) approved the tariffs and the execution of 25 power purchase agreements (PPA) for grid-connected solar power projects with an aggregate capacity of 71.9 MW.

The accepted tariffs ranged from ₹2.79 (~$0.0307) to ₹2.95 (~$0.0324)/kWh.

Background

The projects are part of a larger feeder-level solarization tender issued by Uttar Pradesh New & Renewable Energy Development Agency under PM KUSUM Component C2 for a total capacity of 2,553.5 MW, revised from an initially approved 3,205 MW.

Under the same tender, bids were received for 494 substations totaling 1,529.1 MW, with additional bids for 72 substations totaling 157.3 MW.

Letters of award were issued for 566 substations totaling 1,686.4 MW.

The present petition pertains specifically to 25 substations, where projects aggregating 71.9 MW have reached the PPA execution stage.

The petitioners submitted that the bidding process was conducted transparently and competitively and that the discovered tariffs were reasonable and aligned with prevailing market prices for solar power.

They requested that the Commission adopt the tariffs under Section 63 of the Electricity Act and approve the executed PPAs so that the projects could proceed to financial closure and implementation.

Uttar Pradesh Power Corporation supported the petition and confirmed that the PPAs had been executed in line with the approved bidding documents. It submitted that timely regulatory approval was necessary to meet project timelines and to ensure a reduction in power purchase costs for agricultural supply.

Commission’s Analysis

The Commission reviewed the bidding process and found that the tariffs had been discovered through open and competitive bidding in accordance with the applicable central government guidelines.

It also examined the tariffs quoted by the successful bidders. It noted that the accepted tariffs for the 25 projects ranged from ₹2.79 (~$0.0307) to ₹2.95 (~$0.0324)/kWh, which were within the broader tariff band identified in the overall tender and reflected prevailing market conditions for similar solar projects.

The Commission observed that the 25-year PPAs would help the distribution licensee reduce its dependence on conventional power sources for agricultural feeders while improving supply reliability during daytime hours.

It also noted that feeder-level solarization would reduce losses and ease the operational burden on the grid.

Considering the petitioners’ submissions and the supporting documents on record, the Commission adopted the discovered tariffs and approved the execution of the PPAs.

The Commission had earlier approved a total of 203 PPAs totaling 610.1 MW under the same tender.

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