UPERC Reviews NPCL Proposal For 300 MW Wind-Solar Hybrid Project, Seeks Detailed Submissions Before Approval

The Uttar Pradesh Electricity Regulatory Commission (UPERC) recently conducted a hearing on January 13, 2026, regarding a petition submitted by Noida Power Company Limited (NPCL). The company is seeking approval for the long-term procurement of 300 MW of power from a wind-solar hybrid power project through a competitive bidding process. Along with this request, NPCL has asked for permission to deviate from certain standard bidding guidelines issued by the Commission in August 2023.

During the proceedings, representatives from NPCL outlined their strategy for addressing future energy demands in the region. They submitted additional documents, including draft bidding papers, and explained the reasoning behind selecting a hybrid power model. A central point of discussion was why NPCL chose a hybrid option over Firm and Dispatchable Renewable Energy (FDRE). Sh. Sanket Srivastava, representing NPCL, stated that projections for the 2028-29 fiscal year indicate that FDRE power would exceed actual demand, potentially resulting in an unnecessary surplus. According to him, the hybrid model would better align with the company’s specific requirements.

The Commission raised several concerns during the hearing. It noted that the Central Electricity Authority (CEA) had not recommended hybrid power for NPCL in its Resource Adequacy Report. Additionally, the Commission pointed out that FDRE power has clear advantages, such as better compliance with Renewable Consumption Obligations (RCO) and more efficient use of Battery Energy Storage Systems (BESS). In response, NPCL argued that its current demand profile, which does not include about 120 MW from Open Access and Solar Rooftops, requires a more customized approach. The company emphasized that relying solely on FDRE could create an expensive power surplus.

NPCL also highlighted the urgency of obtaining approval, citing a 25% waiver on transmission charges that is set to expire in June 2028. The company intends to issue bidding documents quickly to benefit from these lower costs. Currently, NPCL meets its energy requirements through short-term power arrangements but plans to shift to long-term and medium-term contracts starting in the 2028-29 fiscal year.

The Commission observed that NPCL’s existing power portfolio lacks substantial firm power, except for a long-term tie-up with Dhariwal Infrastructure Ltd. It has therefore directed NPCL to provide more detailed information before a final decision can be made. The company is required to submit a year-wise comparison of contracted power against CEA recommendations, a cost-benefit analysis of its renewable energy portfolio through FY 2033-34, and a justification for why hybrid power is more suitable in terms of cost and energy output.

Furthermore, NPCL must clarify its assumptions regarding the average FDRE tariff of Rs. 4.85 per kWh and present a clear plan to meet its RPO and RCO targets through FY 2029-30. The final order, signed by Chairman Arvind Kumar and Member Sanjay Kumar Singh, notes that the next steps in the approval process will depend entirely on these detailed submissions. The hearing underscores the Commission’s careful scrutiny of renewable energy procurement strategies, balancing cost efficiency, grid stability, and compliance with regulatory requirements.