UPERC Reviews UPPCL-NHPC Deal For 1525 MW Solar Supply

The Uttar Pradesh Electricity Regulatory Commission (UPERC) held a hearing on April 17, 2025, to review a petition filed by the Uttar Pradesh Power Corporation Limited (UPPCL) seeking approval for the purchase of 1,525 MW of solar power through the National Hydroelectric Power Corporation (NHPC).

UPPCL had earlier signed a Power Sale Agreement (PSA) for 1,500 MW on March 7, 2024. Later, on July 29, 2024, a Supplementary PSA (SPSA) was signed to add an extra 25 MW, increasing the total to 1,525 MW. This power is being sourced from solar developers setting up projects in Rajasthan. These include Solairedirect (225 MW), Avaada Energy (1000 MW), and Hazel Hybren (275 MW). All these projects were selected under a Tariff Based Competitive Bidding (TBCB) process organized by NHPC, which was designated by the Ministry of New and Renewable Energy (MNRE) as an intermediary procurer.

The agreed tariff for this solar power is about ₹2.52–₹2.53 per unit, and NHPC will earn a trading margin of 7 paisa per unit. During the hearing, both UPPCL and NHPC representatives confirmed that the Central Electricity Regulatory Commission (CERC) had already adopted the tariff rates through its order dated March 20, 2025.

The Commission raised questions about the bidding framework for the additional 25 MW. NHPC explained that the 25 MW capacity was initially allocated to the Military Engineering Services (MES), but after they gave up their share, it was reallocated to UPPCL with its consent in May 2024.

The move is part of UPPCL’s strategy to meet rising Renewable Purchase Obligations (RPO), which mandate state discoms to source nearly 30% of their power from renewables by FY 2024–25. Failure to meet these targets could attract heavy penalties of up to ₹10 lakh per violation, and ₹3.72 per unit shortfall, as per government rules.

The Commission acknowledged the submissions and allowed both parties to file additional supporting documents. A final order is expected soon.