The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the tariffs and execution of 28 power purchase agreements (PPAs) for grid-connected solar power projects with an aggregate capacity of 93.4 MW under Component C-2 of PM KUSUM.

The approved tariffs range from ₹2.8 (~$0.03115) to ₹2.98 (~$0.03327)/kWh.

Background

The projects are part of a feeder-level solarization tender issued by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) under PM KUSUM Component C-2, targeting a total capacity of 2,553.5 MW, revised from the initially approved 3,205 MW.

Under the same tender, bids were received for 494 substations aggregating 1,529.1 MW, with additional bids for 72 substations totaling 157.3 MW. Letters of award were issued for 566 substations with a cumulative capacity of 1,686.4 MW.

The petition, filed by UPNEDA and Uttar Pradesh Power Corporation (UPPCL), pertains specifically to 28 substations, where solar projects aggregating 93.4 MW have reached the PPA execution stage.

The petitioners submitted that the bidding process was conducted through a tariff-based competitive bidding mechanism transparently and that the discovered tariffs were competitive and reflective of prevailing market conditions.

They requested the Commission to adopt the tariffs under Section 63 of the Electricity Act, 2003, and approve the executed PPAs to enable financial closure and timely project implementation.

UPPCL confirmed that the PPAs were executed in accordance with the approved bidding documents. It emphasized that regulatory approval was essential to meet commissioning timelines and optimize power procurement costs for agricultural supply.

Commission’s Analysis

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

It examined the tariffs quoted by the successful bidders and noted that the accepted tariffs for the 28 projects ranged from ₹2.8 (~$0.03115) to ₹2.98 (~$0.03327)/kWh, which fell within the tariff band discovered in the overall tender and aligned with market trends for similar solar projects.

The 25-year PPAs would enable the distribution licensee to reduce reliance on conventional power sources for agricultural feeders, improve daytime power availability, and lower technical and commercial losses.

Considering the submissions made by the petitioners and the documents on record, the Commission adopted the discovered tariffs and approved the execution of the 28 PPAs totaling 93.4 MW.

UPERC also advised the Uttar Pradesh New and Renewable Energy Development Agency and the Uttar Pradesh Power Corporation to proactively facilitate project developers to ensure timely commissioning, thereby achieving the objectives of the PM KUSUM.

The Commission had earlier approved 25 PPAs totaling 71.9 MW under the same tender.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.