The Uttar Pradesh Electricity Regulatory Commission (UPERC) has granted approval for the procurement of 5 MW of power from a grid-connected solar PV power project in Mau district, Uttar Pradesh. The approval comes following a petition filed under the Electricity Act 2003 seeking approval for Request for Selection (RFS) and Power Purchase Agreement (PPA) with deviations. The project aims to promote renewable energy usage and expand solar power generation in the state.
The petition, submitted jointly by the Uttar Pradesh Power Corporation Limited (UPPCL) and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), outlined plans for establishing the 5 MW solar power plant on approximately 11.868 hectares of land in Saraysadi village. UPNEDA had initiated discussions with UPPCL and Uttar Pradesh Power Transmission Corporation Limited (UPTCL) regarding the project proposal in February 2023.
In response, UPPCL and UPTCL provided their consent for the establishment of the solar power plant, suggesting a ceiling tariff of ₹2.98 per unit. The state government has agreed to bear the cost of constructing a 10-kilometer transmission line for the project, while UPNEDA will provide the land on a lease rent basis of ₹15,000 per acre per annum for 30 years.
The approval process involved modifications to the bidding documents in accordance with Ministry of Power guidelines issued in July 2023. The UPERC directed adjustments to the declared annual Capacity Utilization Factor (CUF) of 19% and set the ceiling tariff at ₹2.98 per unit, aligning with regulatory provisions.
UPERC emphasized the importance of competitive bidding processes in determining tariffs for solar projects. The commission noted that tariffs for solar projects up to 5 MW should be based on the weighted average tariff of projects above 5 MW discovered through competitive bidding in the previous financial year, as per UPERC CRE Regulation 2019.
With the necessary adjustments made to the bidding documents, the UPERC approved the procurement of solar PV-based power from the 5 MW project in Mau district. The decision underscores the state’s commitment to promoting renewable energy initiatives and facilitating sustainable development.
The approved project is expected to contribute to Uttar Pradesh’s renewable energy targets and enhance the state’s energy security by harnessing solar power resources. It signifies a significant step towards achieving a more sustainable and environmentally friendly energy mix, reducing reliance on conventional sources of power generation. The approval granted by UPERC marks a milestone in the journey towards a cleaner and greener energy future for Uttar Pradesh. The successful implementation of the 5 MW solar power project will not only generate clean electricity but also create opportunities for economic growth and environmental stewardship in the region.
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