Uttar Pradesh to Procure 200 MW of Solar Power from Pavagada at ₹2.89/kWh

The state commission has approved the PSA between SECI and UPPCL


The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the power sale agreement (PSA) signed between Uttar Pradesh Power Corporation Limited (UPPCL) and the Solar Energy Corporation of India (SECI).

A tariff of ₹2.89 (~$0.041)/kWh was determined to procure 200 MW of solar power from Pavagada Solar Park for 25 years.

The commission has also approved the PPAs signed between SECI and SBG Cleantech Projectco Five Private Limited, which is a subsidiary of SBE Five Limited, on January 4, 2019.

The government of India has designated SECI as the nodal agency for developing grid-connected solar power capacity. SECI plays the role of an intermediary procurer in line with the provisions of the guidelines for the tariff-based competitive bidding process for the procurement of power from grid-connected solar projects.

As reported by Mercom last year, SECI had auctioned 200 MW of grid-connected solar projects to be developed at the Pavagada solar park located in the Tumkur district of Karnataka.

According to Mercom India Research, four 50 MW blocks, namely, B23, B24, B25, and B26, were made available to develop this capacity.

In January 2018, SECI had tendered 200 MW of grid-connected solar PV projects to be developed at the Pavagada Solar Park in Karnataka. The capacity was tendered under the National Solar Mission (NSM) Phase-II Batch-IV Tranche-XIV.

In the auction, SBE Five Ltd was declared the winner after it quoted a tariff of ₹2.82 (~$0.0416)/kWh.

Later, SECI informed UPPCL that it was willing to sell 200 MW of solar power from the park at ₹2.89 (~$ 0.041)/kWh for the duration. SECI also noted that there would be no interstate transmission charges and losses levied on this power, and it will qualify for the state’s fulfillment of renewable purchase obligation (RPO). The UPPCL agreed to purchase the power, and subsequently, the PSA was executed with SECI on November 15, 2018.

According to Mercom’s India Solar Project Tracker, SBG Cleantech recently commissioned 100 MW out of the 200 MW capacity awarded by SECI in Pavagada Solar Park. The remaining 100 MW will be commissioned in the coming weeks. This project would mark the full commissioning of the total 2,050 MW capacity, making Pavagada the world’s largest solar park.