The Uttarakhand Electricity Regulatory Commission (UERC) has directed the Uttarakhand Power Corporation (UPCL) to initiate termination of power purchase agreements for 12 solar power projects that have not made any progress or statutory clearances are pending.

The case involved the scheduled commercial operation dates (SCOD) of several renewable energy projects that had been delayed due to land and forest clearance, as well as other statutory bottlenecks.

The Commission, after reviewing stakeholder submissions and public comments, permitted amendments to PPAs to reflect the installed capacities of partially completed projects. The order applies to projects including Dhalipur 6.25 MW (4 MW developed), Kulhal 9.5 MW (4 MW developed), Dakpathar 2.5 MW (under execution), Bhatwari 4 MW (evacuation split sought), and Gadhha Colony 1.5 MW, Dhakrani 9.5 MW, Pashulok 1.25 MW, Aungi 7.75 MW, and Dharasu 4 MW in varying stages of execution.

However, it declined to reopen or extend timelines for developers whose previous extension requests had already been rejected.

Background

The case originated from UPCL seeking the Commission’s guidance on UJVN’s request for a six-month extension of SCOD for two canal bank solar projects: 6.25 MW near Dhalipur and 9.5 MW near Kulhal, citing land acquisition delays.

On August 5, 2024, the Commission granted a five-month extension, effective up to February 11, 2025, and directed the submission of monthly progress reports. By early 2025, UJVN reported partial completion, with 4 MW at Dhalipur and 4 MW at Kulhal, pending forest department approvals.

Subsequent communications through mid-2025 indicated that continuing challenges remained, including encroachment, delays in tree cutting, and forest clearance issues at Dakpathar, Bhatwari, and Aungi in Uttarkashi.

Given repeated extension requests, the Commission issued a public notice on August 17, 2025, inviting stakeholders to submit comments. Thirty stakeholders responded, with many opposing further leniency to developers who had repeatedly failed to meet deadlines.

Developers under the Mukhyamantri Saur Swarojgar Yojana (MSSY) program cited land lease and weather-related challenges, while the Akshay Urja Association and individual developers highlighted forest clearance bottlenecks and constraints in eco-sensitive zones.

Uttarakhand Renewable Energy Development Agency’s (UREDA) earlier practice of granting SCOD extensions up to March 31, 2025, had been disallowed by the Commission on March 27, 2025, and later upheld by a review order on July 21, 2025.

Commission’s Analysis

The Commission reiterated that any amendment or approval of a PPA must ensure the economy and necessity of power procurement by the distribution licensee.

It also referred to the Renewable Energy Regulations, 2023, which mandate the submission of performance ratios and project completion reports prior to commissioning being recognized.

The Commission observed that the project status of most private developers had not improved since earlier rejections, with land and clearance issues persisting. Hence, it found no merit to grant additional extensions.

UPCL’s submission that delays in small-capacity solar plants had a negligible impact on its renewable purchase obligation compliance was acknowledged, although the Commission stressed UPCL’s duty to act promptly against defaulters.

It underscored the need to prevent consumer loss arising from incorrect project categorization or arbitrary extensions by implementing agencies. Balancing the contractual sanctity and development realities, the Commission allowed amendments to PPAs to accommodate commissioned capacities, thereby unlocking partial generation, while directing the termination of non-performing projects.

The Commission permitted UJVN and UPCL to amend existing PPAs by reducing the contracted capacity to the actual capacity installed as of the order date, subject to commissioning in accordance with the Renewable Energy Regulations, 2023.

The amended PPAs must be submitted to the Commission for approval within 15 days. For projects where land acquisition or forest clearance was incomplete and SCOD had expired, UPCL was instructed to initiate termination proceedings in line with contractual provisions.

UREDA was directed to expedite the resolution of issues under the MSSY program to ensure the quick commissioning of allotted capacities. The Commission also cautioned UJVN that projects claimed as “Canal Bank” but developed on plain terrain located 0.5 to 1 km away from the canal could not be treated under the higher canal bank tariff category and must be reclassified as ground-mounted plants.

UJVN was directed to obtain all statutory and non-statutory clearances before floating future solar tenders. UPCL was instructed to strengthen scrutiny of PPAs and coordinate with UREDA, with the Commission making it clear that any financial burden arising from UPCL’s failure to act promptly would be its responsibility.

In October this year, UERC set an additional surcharge of ₹1.09 (~$0.0123)/kWh for open access consumers for the period from October 1, 2025, to March 31, 2026.

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