UPERC Clears 300 MW Hybrid Power Deal To Boost Uttar Pradesh’s Renewable Energy Targets

The Uttar Pradesh Electricity Regulatory Commission has approved a Power Sale Agreement between the Uttar Pradesh Power Corporation and NHPC for the purchase of 300 MW of wind-solar hybrid power. This approval, issued under Petition No. 2262 of 2025, is a significant move for the state as it works to meet increasing electricity demand and comply with national renewable energy requirements. The agreement was signed on June 21, 2025, and the approval allows UPPCL to move forward with long-term procurement of clean energy under the Tariff-Based Competitive Bidding process. NHPC led the bidding as the Renewable Energy Implementing Agency for a total of 1,500 MW of hybrid projects, and the tariffs discovered through this process were later adopted by the Central Electricity Regulatory Commission in June 2025.

The 300 MW that UPPCL will procure comes from a hybrid project developed by Energizent Power Private Limited. The project includes a solar capacity of 250 MW in Rajasthan and a wind capacity of 104 MW in Andhra Pradesh. Together, these will contribute a contracted supply of 300 MW to Uttar Pradesh for a period of 25 years. The approved tariff for this power is ₹3.56 per kWh, which includes a trading margin of seven paise per unit. The commission highlighted that the tariff was found competitive based on the results of the national bidding process and the subsequent adoption of tariffs by the central regulator.

The commission emphasized that this procurement is an important step for UPPCL as it works to comply with the Renewable Purchase Obligations set by the Ministry of Power. The new RPO trajectory requires states to significantly increase their share of renewable energy in the coming years. For 2024-25, the required share of renewable energy is 29.91 percent, which will rise to 43.33 percent by 2029-30. The commission noted that failure to meet these targets can lead to penalties, making such procurement essential for compliance as well as energy planning. The hybrid nature of the project also offers benefits by combining the generation strengths of both solar and wind resources, improving supply consistency.

In its order, the commission also addressed the trading margin agreed between the parties. While the tariff includes a margin of seven paise per unit, the commission added a condition that this margin will only be applicable if NHPC provides the required security mechanisms to the hybrid power developer. These include arrangements such as an escrow account or a revolving letter of credit. If such security is not provided, the margin will be restricted to two paise per unit, as per the regulations of the Central Commission. With this approval, UPPCL is now positioned to add a significant volume of renewable energy to its power grid and support its long-term clean energy goals.