UERC Directs Action On Delayed Solar Projects, Orders Strict Compliance And PPA Revisions In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has issued a key order addressing the long-standing issue of delays in the commissioning of solar power projects across the state. The decision follows extensive discussions with around thirty stakeholders, including developers, UJVN Ltd., Uttarakhand Power Corporation Limited (UPCL), and the Uttarakhand Renewable Energy Development Agency (UREDA). These consultations took place after a public notice was released on August 17, 2025.

The main concern before the Commission was the repeated requests from various developers seeking extensions of the Scheduled Commercial Operation Date (SCOD) for their solar photovoltaic (PV) projects. Many of these delays were linked to challenges beyond the developers’ control, such as pending forest clearances required for tree cutting, encroachments on land by local residents, identification of alternate sites, and complications in land procurement, particularly where the proposed project sites were located within Eco-Sensitive Zones.

UJVN Ltd., a state-run public sector entity, was among those seeking extensions for several of its solar power projects. The company cited examples such as the 6.25 MW plant near Dhalipur and the 9.5 MW plant near Kulhal, both of which faced partial completion due to forest and land-related issues. The Commission observed that although UJVN Ltd. had successfully commissioned some of its projects, like the 9.5 MW Canal Bank Solar PV plant near Dhakrani, essential documentation such as completion reports and performance ratio tests were still pending from UREDA.

In its order, the Commission expressed concern over the misclassification of certain projects. It pointed out that some installations categorized as “Canal Bank” projects were actually being developed on plain land located nearly a kilometer away from the canal. The Commission emphasized that this was a serious issue because canal bank projects are eligible for a higher tariff than ground-mounted projects, which could result in an undue financial burden on consumers.

The UERC also reviewed the cases of twelve private developers who were allotted projects under the 2013 Solar Policy. These developers had already been denied SCOD extensions twice—once in March 2025 and again in July 2025. The Commission reiterated its earlier stance, stating that there was no justification to grant further extensions since the status of these projects remained largely unchanged. The Commission also criticized UREDA for granting extensions to some developers without confirming land acquisition or project readiness, calling such actions beyond its authorized powers.

Tensions between UPCL and UREDA were also addressed in the order. The Commission reaffirmed its own authority under the Electricity Act to oversee and regulate Power Purchase Agreements (PPAs). It directed UPCL to take an active role in reviewing all PPAs and to initiate termination proceedings for projects where land acquisition and other statutory approvals were still incomplete and the SCOD had expired.

However, the Commission adopted a more lenient approach for projects that had achieved partial progress. It allowed UJVN Ltd. and the concerned developers to amend their PPAs within fifteen days to reflect only the installed capacity that had been completed. Additionally, the Commission instructed UJVN Ltd. to obtain all necessary statutory and environmental clearances before announcing or tendering any future solar projects. It emphasized the need for a structured and well-planned approach to ensure that such delays and regulatory complications do not recur in future solar initiatives in Uttarakhand.