UERC Declines Further Extension For 200 MW Solar Projects, Calls For Project Review And Cancellation In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) issued an order on March 27, 2025, concerning the extension of time for commissioning solar photovoltaic projects under the 200 MW scheme launched through a tariff-based competitive bidding process. The scheme was initiated under the Solar Energy Policy of Uttarakhand, 2013, to help meet the Renewable Purchase Obligation (RPO) of Uttarakhand Power Corporation Limited (UPCL). Developers had requested more time, until March 31, 2025, to complete their projects, and UREDA had forwarded these requests to the Commission.

Originally, UPCL had requested UREDA to arrange 200 MW of solar power in 2018 to fulfill its RPO. UREDA invited bids for solar projects in hilly regions, and over time, allowed several extensions due to various reasons including the impact of COVID-19. The Commission had accepted these extensions, but only if projects were commissioned within a certain time frame and the applicable tariff would be the lower of the bid tariff or the generic tariff for the year of commissioning.

UREDA informed the Commission that 40 developers had been allotted capacity under the scheme, but 24 of them, representing 5.6 MW, had not responded or made progress. Twelve others were at the early stages with only land acquisition and PPAs completed. Only four developers, totaling 7.1 MW, had reached near completion with meters sealed and safety certifications obtained.

The Commission noted that multiple extensions had already been provided and UREDA had not given clear reasons or documentation justifying further delays. It was also highlighted that the developers were required to pay for Renewable Energy Certificates (RECs) for the delay period, which was not complied with. UPCL also admitted it had been executing PPAs only after UREDA issued Letters of Award and extended deadlines while arguing that allowing more extensions could help meet the state’s 1,100 MW solar target under the 2023 policy.

However, the Commission observed that UPCL had already met its RPO targets up to the 2024–25 fiscal year and further extensions were not justified. The Solar Energy Policy of 2013, under which the 200 MW scheme was launched, has already been repealed and replaced by the Uttarakhand State Solar Policy of 2023.

Because of the above factors, the Commission concluded that there was no longer any justification to allow additional extensions. It directed UREDA to cancel the Letters of Award for developers who failed to show progress. Furthermore, UREDA’s request to re-tender 8.1 MW of capacity under the now-repealed 2013 policy was also rejected, as the scheme no longer held relevance under current policy goals.