Several solar power developers in Uttar Pradesh have lodged a petition seeking assurance that their solar power plants will be entitled to bank 100% of the energy they generate for the entire operational life of their projects. The petitioners include Amplus Green Power Private Limited (AGPPL), Amplus RJ Solar Private Limited (ARJSPL), and Amplus Solar Shakti (ASSPL), each having set up solar power projects in various districts of Uttar Pradesh.
AGPPL has established a 50-MW ground-mounted captive solar power project in Mirzapur, while ARJSPL has a similar project of 40-MW capacity in Deoria. ASSPL is in the process of developing a 50-MW ground-mounted captive solar plant in Jhansi. These companies have obtained necessary permissions and agreements with the State Transmission Utility (STU) and Uttar Pradesh Power Corporation Limited (UPPCL) for open access, bulk power transmission, and wheeling.
However, issues arose concerning the extent of banking permissions granted by UPPCL. While AGPPL and ARJSPL managed to secure varying degrees of banking agreements, ASSPL encountered restrictions on achieving 100% banking due to UPPCL’s policies. Despite ASSPL’s attempts to negotiate with UPPCL, their requests for 100% banking went unanswered, prompting them to file a petition before the commission.
The petitioners argue that consistent and clear regulatory frameworks are essential for the financial stability of the energy sector. Uncertainties regarding banking provisions can deter potential investors and affect the feasibility of setting up solar projects. They emphasize the importance of proper banking facilities to ensure a continuous and reliable power supply to captive users, enabling them to align energy generation with their consumption patterns throughout the day.
The petitioners point out the evolution of regulatory frameworks governing renewable energy in Uttar Pradesh. They highlight the transition from the Central Electricity Regulatory Commission (CRE) Regulation 2014 to the UPERC (Captive and Renewable Energy Generating Plants) Regulation 2019. Under the latter, provisions for 100% banking facilities for solar power plants were introduced. Furthermore, the Solar Policy 2022 issued by the Uttar Pradesh government incorporated the provisions of the CRE Regulation 2019, explicitly permitting 100% banking facilities for solar projects.
The Commission has acknowledged the petition and instructed the petitioners to serve copies to the respondents, allowing them six weeks to file counter-affidavits. The petitioners have been granted two weeks to submit rejoinders. The next hearing on the matter is scheduled for April 4, 2024.
The outcome of this petition will significantly impact the future of solar power development in Uttar Pradesh. Clear directives regarding banking facilities will not only encourage investment but also contribute to the state’s renewable energy goals. As stakeholders await the commission’s decision, the case underscores the importance of regulatory clarity and stability in fostering a sustainable energy ecosystem.
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