Upper Tariff Ceiling of ₹3.25/kWh Set for 500 MW Solar Tender in Uttar Pradesh

This upper tariff ceiling has been set considering safeguard duty


The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a request for the procurement (RfP) and a power purchase agreement (PPA) for 500 MW of grid-connected solar photovoltaic (PV) projects put forth by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).

UPNEDA had sought approval of ceiling tariff of ₹3.25 (~$0.044)/kWh for the tender along with the revised RfP and PPA.

Key Provisions

  • Commercial operation date will be 21 months for projects of capacity less than 250 MW.
  • Commercial operation date will be 24 months for projects of capacity more than 250 MW.
  • Upper tariff ceiling will be ₹3.25 (~$0.044)/kWh if safeguard duty is included.
  • If safeguard duty is not included, upper tariff ceiling will be ₹3.10 (~$0.0424)/kWh.
  • Financial closure must be attained within 365 days of PPA signing.

In its order, the UPERC observed that uncertainties due to volatility in international solar market and rupee depreciation will affect solar PV projects as the developers make considerable imports for these projects.

As reported by Mercom previously, technical bids aggregating 750 MW were received by UPNEDA against the tendered capacity of 500 MW, an oversubscription of 250 MW.

UPNEDA had retendered 500 MW of grid-connected solar PV capacity to be developed across the state in July 2018.

In the past too, UPERC had approved UPNEDA’s RfP and PPA for 1 GW of grid-connected solar PV projects. The tender reached auction stage and then was scrapped. This gave rise to a situation where UPNEDA had to again request the UPERC for new RfP and PPA for 500 MW capacity.