UPPCL Secures Approval For 2,000 MW Solar Power Tender With New Deviations In Uttar Pradesh

On August 1, 2024, the Uttar Pradesh Power Corporation Limited (UPPCL) submitted a petition under Section 63 of the Electricity Act 2003 seeking approval for its tender documents. These documents, which include the Request for Selection (RFS) and the draft Power Purchase Agreement (PPA), are intended for the procurement of 2 gigawatts (GW) of solar power. The aim is to enhance solar energy infrastructure in Uttar Pradesh.

In the RFS, a specific clause was included to address the scenario where multiple bidders submit identical tariffs. In such cases, preference would be given to the bidder who offered their last tariff earlier during the e-reverse auction. If a tie persists, the bidder planning to set up their project in Uttar Pradesh would be ranked higher. This approach is designed to encourage local infrastructure development.

UPPCL received communication from the Government of Uttar Pradesh on July 18, 2024, which approved certain deviations and modifications to the RFS. The government emphasized that the evaluation methodology outlined in the RFS supports the Uttar Pradesh Solar Policy 2022. This policy aims to attract solar power developers to invest in solar projects within the state. According to the government’s letter, the RFS, as detailed, aligns with standard bidding guidelines and does not require additional approval.

The commission reviewed the petition and the associated documents. It approved the bidding document with the deviations as proposed by UPPCL for the procurement of 2,000 megawatts (MW) of solar photovoltaic (PV) power through competitive bidding. UPPCL is required to align the tender documents with the approved deviations before proceeding with the bidding process.

The petition was disposed of based on this approval, indicating that UPPCL can move forward with the procurement process for expanding solar power capacity in Uttar Pradesh, provided they adhere to the stipulated deviations in the tender documents. This approval marks a significant step in promoting solar energy and supporting infrastructure development in the state.