Uttarakhand DISCOM Asked to Amend its Draft PPA for 200 MW of Solar Projects

The commission observed that specific clauses in the Model PPA submitted by UPCL are inconsistent with the regulations

September 17, 2019


The Uttarakhand Power Corporation Limited (UPCL) recently approached the Uttarakhand Electricity Regulatory Commission (UERC) seeking its approval for the model power purchase agreement (PPA) between the petitioner and the selected bidders for setting up 200 MW of grid-connected solar photovoltaic power projects.

The petitioner submitted that as per the provisions of the Electricity Act, 2003, it is required to get the prior approval of the commission on the draft power purchase agreement proposed to be entered into with the generating company.

In June 2018, UPCL provided its consent to Uttarakhand Renewable Energy Development Agency (UREDA), the respondent in this case, for the development of 200 MW of solar power to comply with the solar Renewable Purchase Obligation (RPO) for the financial year (FY) 2018-19.

Accordingly, UREDA had conducted a tariff-based competitive bidding process for the selection of the developers. Through the tariff-based competitive bidding, 208 bidders were selected for the development of the projects. These 208 selected bidders are required to execute a PPA with UPCL.

In this regard, the UPCL prepared a model PPA to be signed with the selected bidders and has requested the commission to approve it.

The commission observed that some of the clauses in the model PPA submitted by UPCL are inconsistent and has directed it to take note of them and incorporate necessary corrections while executing the PPAs with the project developers. Some of these inconsistencies relate to the installation of meters, evacuation of power, and force majeure events.

The order added that the model PPA is to be executed between UPCL and the selected developers for the supply of power from the solar PV projects with a capacity ranging between 100 kW to 5 kW. Further, the commission has observed that UREDA had invited tariff-based bids for a cumulative capacity of 200 MW solar power. However, in total, 237 bids were received. After the scrutiny of these proposals, only 208 bids were found eligible for which the PPA is to be executed.

After taking note of the observations made by the commission, the UPCL needs to incorporate necessary changes and corrections and sign the PPA with the developers. The signed PPAs will then have to be submitted to the commission within a week.

Further, the commission also directed the petitioner to file separate petitions seeking the approval for the execution of PPA with the successful bidders having allotted capacity of more than 2 MW.

Previously, it was reported that UREDA also floated a new tender for setting up 200 MW of grid-connected solar power projects under the Uttarakhand Solar Energy Policy.

In July 2019, Mercom had reported that UREDA issued a Request for Proposal (RfP) to develop 52 MW of solar projects. The RfP was for the procurement of solar power on a long-term basis by UPCL.

According to Mercom’s India Solar Tender Tracker, Uttarakhand has 241 MW of solar projects in operations.

Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.