The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a tariff of ₹3.84 (~$0.044)/kWh for the procurement of 300 MW wind-solar hybrid power by Noida Power Company (NPCL).

The Commission also approved the power purchase agreement (PPA) signed between NPCL and Deshraj Solar Energy (DSEPL), the special purpose vehicle of Purvah Green Power (PGPPL), the winning bidder in the competitive process for the procurement of the wind-solar hybrid power.

Background

The case originated from NPCL’s need to address a projected power deficit in its license area (Greater Noida) from the financial year 2026-27 onwards, as indicated by Central Electricity Authority (CEA) forecasts.

NPCL initiated a transparent bidding process for the long-term procurement of 300 MW of power for a 25-year period. On July 9, 2024, NPCL requested the Uttar Pradesh government for a deviation from bidding norms to award the full 300 MW capacity to a single bidder, which was approved on August 22, 2024.

The request for selection was issued on November 8, 2024. PGPPL emerged as the lowest bidder with a quoted tariff of ₹3.84 (~$0.044)/kWh, followed by Torrent Power with a tariff of ₹3.85 (~$0.044)/kWh and Purshottam Profiles with a tariff of ₹3.90 (~$0.045)/kWh.

A letter of award was issued to PGPPL on December 30, 2024, and the PPA was executed with DSEPL on January 31, 2025. DSEPL’s project sites include a 150 MW solar project in Rajasthan and a 300 MW wind project in Andhra Pradesh

NPCL filed the petition with UPERC for tariff adoption and PPA approval. NPCL argued that existing contracts would lead to significant deficits from 2026 to 2034. The high capacity utilization factor of 48% in the wind-solar project and wind-heavy design were presented as superior for matching peak-hour demand.

A cost analysis indicated an annual saving of approximately ₹950 million (~$11.05 million) by choosing the current bidder over alternative arrangements, with an estimated alternative procurement tariff of ₹4.58 (~$0.053)/kWh compared to the ₹3.84 (~$0.044)/kWh quoted by the winning bidder.

Objections were raised by a consumer advocacy firm regarding transparency, citing alleged ties between NPCL and PGPPL, the PPA’s use of a special purpose vehicle without clear affiliate disclosure, an undated bid evaluation committee report, and the absence of board approval for the formation of the committee.

NPCL and PGPPL contended that the guidelines permit PPA execution with special purpose vehicles, and PGPPL’s 100% ownership by DSEPL was documented.

Commission’s Analysis

The Commission validated the demand-supply based on the CEA’s long-term projections, confirming the necessity of procuring 300 MW of hybrid power. The discovered tariff of ₹3.84 (~$0.044)/kWh was found to be competitive.

The Commission accepted the procurement from a single successful bidder, as this deviation was approved by the Uttar Pradesh government and deemed beneficial for consumers by enabling lower tariffs.

Technically, the wind-heavy hybrid profile was recognized for its better reliability and base load coverage during non-solar hours. While acknowledging the consumer intervenor’s concerns, UPERC found that there was no material impact on the transparency or fairness of the bidding process.

However, the Commission directed NPCL to seek prior approval for any future deviations from competitive bidding guidelines. NPCL was also advised to enhance internal documentation, particularly regarding the formation and process of the bid evaluation committee, including the proper dating of reports and maintaining administrative diligence.

The regulator directed DSEPL to commission the power projects according to the agreed-upon schedule in the PPA.

In May this year, UPERC approved the power sale agreement and supplementary power sale agreement between Uttar Pradesh Power Corporation and National Hydroelectric Power Corporation for procuring 1,525 MW of solar power.

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