The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a tariff of ₹2.57 (~$0.028)/kWh for procuring power from 400 MW of solar projects by Uttar Pradesh Power Corporation (UPPCL).

The Commission also approved the Power Purchase Agreement (PPA) executed between UPPCL and Adani Green Energy Sixty-Nine, a special purpose vehicle of Adani Green Energy, for  25 years.

Background

UPPCL filed a petition seeking approval of the tariff determined through an e-reverse auction and the adoption of the PPA for solar procurement.

The procurement was carried out in line with the Ministry of Power’s Guidelines for tariff-based competitive bidding of grid-connected solar power projects.

The utility stated that the procurement was necessary to meet its Renewable Purchase Obligation (RPO) targets, particularly in view of revised RPO trajectories notified by the Ministry of Power for FY 2024–25 onwards.

UPPCL highlighted that solar power procurement would help promote green energy while optimizing power purchase costs.

The bidding process for 2 GW was conducted, with multiple bidders participating.

Following the evaluation, Adani Renewable Energy Holding Twelve, another SPV of Adani Green Energy, emerged as one of the successful bidders and subsequently nominated Adani Green Energy Sixty-Nine as the project company for the execution of a 400 MW solar project in Rajasthan.

The tender was issued in February 2024.

Commission’s Analysis

The Commission noted that the bidding process was conducted in accordance with the approved Request for Selection and PPA documents, except for limited deviations in timelines, which were found to be procedural and non-material in nature.

UPERC observed that the discovered tariff was competitive, aligned with prevailing market trends, and beneficial for consumers.

The Commission also considered its earlier order approving deviations in bidding documents for the larger 2 GW procurement and noted that the conformity certificate issued by the Bid Evaluation Committee confirmed compliance with the applicable bidding guidelines.

UPERC concluded that the procurement would help meet UPPCL’s RPO targets and support the state’s renewable energy objectives.

Accordingly, UPERC approved the adoption of the tariff of ₹2.57 (~$0.028)/kWh, and the PPA executed with Adani Green Energy Sixty-Nine.

In December last year, UPERC approved tariffs for 136.4 MW solar projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

Earlier, the Commission had approved the procurement of 300 MW of wind–solar hybrid power by UPPCL from NHPC at the tariff of ₹3.56 (~$0.040)/kWh, including a trading margin of ₹0.07 (~$0.00079)/kWh.

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