Uttar Pradesh and SECI Finalize PSA for 750 MW of Solar at a Tariff of ₹2.55/kWh

The PSA was agreed between the two parties last year


The Uttar Pradesh Electricity Regulatory Commission (UPERC) recently approved the power sale agreements (PSA) between Uttar Pradesh Power Corporation Limited (UPPCL) and Solar Energy Corporation of India (SECI) at a tariff rate of ₹2.55 (~$0.036)/kWh for 25 years.

The UPPCL has also confirmed that Uttar Pradesh is the only beneficiary state for the projects. “So that the matter falls within the jurisdiction of UPERC.”

The move comes after UPPCL filed a petition before the commission seeking the approval of 750 MW of solar power PSA dated March 28, 2018, signed between UPPCL and SECI at a tariff rate of ₹2.55 (~$0.036) including ₹0.07 (~$0.00987) trading margin for 25 years.

In the 500 MW Bhadla Phase-III Solar Park auction, Hero Future Energies won 300 MW quoting a tariff of ₹2.47 (~$0.0380)/kWh followed by Softbank Group (SBE Four) which won 200 MW for ₹2.48 (~$0.0382)/kWh.

In the 250 MW Bhadla Phase-IV Solar Park auction, Azure Power won the bid to develop 200 MW by quoting the lowest tariff of ₹2.48 (~$0.0388)/kWh. ReNew Power won the remaining 50 MW with a bid of ₹2.49/kWh.

List of Developers at Bhadla Solar Park

Previously, Mercom had reported that in an aim to replicate the success of the Bhadla Phase-III and Phase-IV solar park auctions, the government of Uttar Pradesh was also considering setting up 750 MW of solar at Bhadla. Solar tariffs reached an all-time low of ₹2.44 (~$0.037)/kWh in the Bhadla Phase-III, Tranche-VIII Solar Park auction, and the government of Uttar Pradesh was planning to set up the projects in Rajasthan to procure power at similar competitive rates. At that time, Mercom had also reported that at a meeting in New Delhi, officials from the Ministry of New and Renewable Energy (MNRE), SECI, and representatives from the Uttar Pradesh and Rajasthan governments had laid out a roadmap to carry out the reverse auction and award the projects by August 31, 2017 – with a target to start generation from October 2018.

Image credit: Thomas Lloyd Group [CC BY-SA 4.0]