The Uttar Pradesh Electricity Regulatory Commission (UPERC) has adopted the tariffs discovered through the competitive bidding process for 25 solar projects totalling 82.6 MW under the PM-KUSUM program.

The accepted tariffs across these projects range from ₹2.87 (~$0.0323)/kWh to ₹2.99 (~$0.0337)/kWh.

The Commission also approved all 25 power purchase agreements (PPAs) executed between the successful project developers and the Uttar Pradesh Power Corporation (UPPCL).

Background

The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) issued a tender in July 2024 for a total capacity of 2553.5 MW. It issued letters of award (LoAs) to the successful bidders between February and July 2025. Although the original approved capacity was 3,205 MW, UPNEDA revised it to 2,553.5 MW due to technical considerations.

While the overall tender covered this full capacity, the present petition concerns only 25 PPAs totalling 82.6 MW. Other PPAs were filed through separate petitions currently at different stages of review.

UPNEDA and UPPCL informed the Commission that certain typographical errors were identified in the petition. These errors pertained to the dates of PPA execution, the number of PPAs mentioned (incorrectly stated as 29 instead of 25). They requested the Commission to condone these inadvertent mistakes.

The respondents stated that they had no objection to the approval of the PPAs. They requested that the Commission direct UPPCL to ensure the timely signing of escrow agreements.

They also sought guidance on the timely allocation of bays and grid connectivity, including the execution of connectivity agreements wherever required, so that developers can meet project milestones.

Commission’s Analysis

The Commission noted that UPNEDA had adhered to its directions regarding the identification of substations, segregation of feeders, and proper alignment of bidding documents. Technical bids were opened on January 10, 2025, followed by financial bids on January 29, 2025.

Out of 1,002 substations with a cumulative capacity of 2,553.5 MW, bids were received for 494 substations totalling 1,529.1 MW. Additional bids for 72 substations were also received under the applicable tender clause, bringing the total to 566 substations with LoAs totaling 1686.4 MW.

The Commission relied on the bid conformity certificate issued by the bid evaluation committee, which confirmed that the bidding was carried out strictly in accordance with the request for selection dated July 19, 2024. It also recorded that the reduction from 3,205 MW to 2,553.5 MW in the bidding programme was based on technical considerations.

The tariffs discovered through the bidding process and agreed upon in the PPAs range from ₹2.87 (~$0.0323)/kWh to ₹2.99 (~$0.0337)/kWh, depending on substation and project location. The Commission found these tariffs competitive and consistent with expectations for feeder-level solarisation projects under the PM-KUSUM program.

Exercising its powers under Section 63 of the Electricity Act, the Commission adopted the individual tariffs and approved the 25 PPAs. It further advised UPNEDA and UPPCL to proactively support project developers to ensure that the projects are commissioned within the scheduled timelines.

The Commission emphasised that timely completion would help optimise UPPCL’s power purchase costs and contribute to achieving the broader objectives of PM-KUSUM.

Recently, the Ministry of New and Renewable Energy clarified that the relaxation allowing the use of non-DCR modules for solar projects under Component C of the PM KUSUM program applies only to projects that had LoA issued on or before March 31, 2024.

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