UPERC Approves 110 MW Solar Power Procurement From Kanpur Dehat And Kanpur Nagar Parks Through TBCB

The Uttar Pradesh Electricity Regulatory Commission received a petition under Section 86 of the Electricity Act, 2003 for approval of bidding documents and power purchase agreement (PPA) for procurement of 110 MW of solar power. This power will be generated from two solar parks to be developed in Kanpur Dehat (75 MW) and Kanpur Nagar (35 MW) under the Solar Parks and Ultra Mega Solar Power Projects Scheme by the Ministry of New and Renewable Energy (MNRE).

The petitioner requested approval for the Request for Selection (RfS) and the PPA, including proposed deviations. The MNRE had already given in-principle approval for setting up both solar parks through its letter dated 01.02.2024. The solar parks will be developed by Lucknow Solar Power Development Corporation Ltd. (LSPDCL), a joint venture of UPNEDA and SECI. LSPDCL will act as the Solar Park Developer and Implementing Agency.

LSPDCL has already developed 365 MW of solar parks in other districts, and the entire power is being procured by UPPCL. For the Kanpur Dehat and Kanpur Nagar projects, LSPDCL has secured government land on lease for 30 years at a nominal rate of ₹1 per acre per year under the Solar Energy Policy 2022. Land lease agreements have been signed and boundary fencing work is in progress. UPPCL has also given consent to procure the full 110 MW of power generated.

The selected developers will be given the “Right to Use” of the land and will pay a one-time upfront development charge of ₹13 lakh/MW for Kanpur Dehat and ₹14 lakh/MW for Kanpur Nagar. LSPDCL will develop the necessary infrastructure including evacuation lines, substations, and approach roads. Power evacuation has been found technically feasible by UPPTCL through identified substations.

The projects will be selected through a Tariff-Based Competitive Bidding (TBCB) process. The bidding will take place through the Bharat Electronic Tender portal. Each project will be awarded entirely to one bidder, either for 75 MW or 35 MW capacity. No ceiling tariff has been fixed, and bids will be evaluated based on the lowest quoted tariff. The minimum required capacity utilization factor (CUF) is set at 17%, in line with recent solar bidding norms.

Bidders will need to meet financial criteria such as a net worth of ₹80 lakh/MW and demonstrate financial capability through turnover, internal resource generation, or a credit line from banks. Each developer will have to deposit ₹20 lakh/MW as a performance bank guarantee. Projects must be commissioned within 24 months from the signing of the PPA. The selected modules and cells must comply with the ALMM list issued by MNRE.

The Commission approved the deviations proposed by the petitioner in the bidding structure and tariff evaluation method. It directed UPNEDA to form a bid evaluation committee, complete the bidding process promptly, and approach the Commission for final PPA approval. With this, the petition has been disposed of.