DERC Approves 32.43 MW Nuclear Power PPA Between TPDDL And NPCIL In Delhi

In a major development for Delhi’s power supply, the Delhi Electricity Regulatory Commission (DERC) has approved a Power Purchase Agreement (PPA) between Tata Power Delhi Distribution Ltd. (TPDDL) and Nuclear Power Corporation of India Ltd. (NPCIL). The PPA is for procuring 32.43 MW of power from the Rajasthan Atomic Power Station (RAPS) Units 7 & 8 for a period of 15 years. This decision, formalized on September 15, 2025, comes after TPDDL filed a petition under Section 86 of the Electricity Act, 2003, seeking approval for the agreement.

The DERC order, signed by Members Surender Babbar and Ram Naresh Singh, followed a hearing held on August 6, 2025, and a thorough review of the proposed PPA. The commission noted that the draft agreement aligns closely with a previously approved PPA for RAPS Units 5 & 6, ensuring consistency in the procurement framework.

The process leading to this approval began in 2011, when the Ministry of Power (MoP) allocated a total of 101.11 MW from RAPS Units 7 & 8 to the National Capital Territory (NCT) of Delhi. This allocation was made in anticipation of the units’ commercial operation. NPCIL, as the respondent in the petition, later informed TPDDL and other distribution licensees about the near completion of these units and sought their acceptance of the allocated power.

On October 26, 2024, NPCIL communicated to TPDDL that the tentative base tariff for the first year was expected to be around 483 paise per unit, equivalent to ₹4.83 per kWh. This tariff was subject to adjustments for factors such as water, insurance, and taxes. After reviewing the cost-effectiveness and reliability of the proposed nuclear power supply, TPDDL requested an allocation of approximately 32 to 35 MW from RAPS Units 7 & 8.

Following this, a meeting convened by the DERC on November 8, 2024, officially allocated the power among Delhi’s distribution licensees. On January 21, 2025, TPDDL received a specific allocation of 32.43 MW from the total 101.11 MW. The company formally accepted this allocation on February 13, 2025, completing the necessary procedural requirements before executing the PPA.

With the DERC approval now in place, TPDDL can proceed with the formal execution of the agreement for the allocated 32.43 MW. The tariff for the power will be determined in accordance with notifications issued by the Department of Atomic Energy (DAE) under the Atomic Energy Act, 1962. The availability of this carbon-free, reliable power source is expected to strengthen the electricity supply for North and North-West Delhi, the areas served by TPDDL, and will play a key role in meeting the region’s long-term energy needs.

This step also marks a significant milestone in Delhi’s ongoing efforts to diversify its energy mix by incorporating nuclear power. The PPA ensures that TPDDL will have access to a stable and predictable source of electricity over the next 15 years, providing both reliability and sustainability for the capital’s growing power demand. By securing power from RAPS Units 7 & 8, TPDDL contributes to the government’s broader goals of clean energy adoption and efficient energy management in urban centers.

Overall, the DERC approval of this PPA represents a carefully considered move to enhance Delhi’s power infrastructure, offering residents and businesses in the capital access to continuous, low-carbon electricity while supporting the long-term objectives of energy security and environmental responsibility.