The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a tariff of ₹2.56 (~$0.028)/kWh for NTPC Renewable Energy’s (NREL) 400 MW solar project.

The Commission also approved the power purchase agreement (PPA) executed between Uttar Pradesh Power Corporation (UPPCL) and NREL for the supply of power for 25 years.

Background

In 2024, UPPCL floated a tender to procure 2 GW of solar power from interstate transmission system/intrastate transmission system-connected solar projects.

The tender attracted 10 bidders, with a total bid capacity of 4,350 MW.

Power Mech Projects was eliminated for quoting the highest tariff in the auction. The remaining nine bidders qualified for the auction.

Further, UPPCL asked bidders setting up projects in Uttar Pradesh to revise their tariffs to match those quoted by other bidders. However, UPPCL stated that none of the bidders shared revised tariffs. Letters of award were issued to four bidders.

Apart from NREL, UPPCL issued letters of award to ReNew Solar Power, Fastnote Bio Fuels, and Adani Renewable Energy Holding Twelve.

NREL accepted the letter of award and signed a power purchase agreement with UPPCL.

UPPCL approached the Commission to approve a tariff of ₹2.56(~$0.028)/kWh for 400 MW of the 1,000 MW awarded capacity.

UPPCL also requested that the Commission approve the PPA signed between UPPCL and NREL.

Commission’s Analysis

The Commission noted that tariffs were discovered through a competitive and transparent bidding process.

It added that UPPCL had submitted that the solar procurement would facilitate meeting its renewable purchase obligations and optimize its power purchase costs.

It approved the tariff of ₹2.56 (~$0.028)/kWh for NREL’s 400 MW solar project and approved the PPA.

Last year, UPERC 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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