UPERC Reviews 400 MW Solar Power PPA Between UPPCL And NTPC Renewable Energy

The Uttar Pradesh Electricity Regulatory Commission has taken up a petition related to the adoption of a solar power tariff and approval of a Power Purchase Agreement between Uttar Pradesh Power Corporation Limited and NTPC Renewable Energy Limited. The agreement involves the procurement of 400 MW of solar power for a period of 25 years and is aimed at supporting the state’s renewable energy and clean power goals.

This solar power procurement forms part of UPPCL’s plan to meet its Renewable Purchase Obligation targets, which are set by the Ministry of Power. Under the current renewable energy trajectory, distribution companies are required to steadily increase the share of renewable energy in their total power procurement. The overall RPO target is expected to increase from 29.91 percent in FY 2024–25 to 43.33 percent by FY 2029–30. Non-compliance with these targets can attract strict penalties, including fines of up to ₹10 lakh for each instance of failure and additional charges of ₹3.72 per unit for any energy shortfall.

The 400 MW solar power capacity was procured through a Tariff Based Competitive Bidding process. A total of ten companies participated in the bidding, indicating strong interest from the renewable energy sector. NTPC Renewable Energy Limited emerged as the successful bidder after quoting a tariff of ₹2.56 per unit, which was considered competitive. Other companies that took part in the bidding process included SAEL Industries Limited, JSW Neo Energy Limited, and Adani Renewables Energy Holding Twelve Limited.

Despite the successful discovery of a low tariff, the Commission raised concerns over procedural delays and issues related to transparency. UPERC noted that there was a significant delay between the completion of the reverse auction and the signing of the Power Purchase Agreement. As per the guidelines issued by the Ministry of Power, a PPA is generally expected to be signed within 41 days of the auction. In this case, the reverse auction was completed on January 3, 2025, while the PPA was signed much later on June 4, 2025.

The Commission also pointed out discrepancies in the documents submitted by UPPCL, including inconsistencies in the PPA timeline and delivery points. UPERC expressed displeasure over the delayed filing of documents and sought detailed clarification on the deviations from the approved bidding documents.

UPPCL’s legal counsel informed the Commission that the delay was due to internal administrative procedures, including approvals required from the Bid Evaluation Committee and the Board of Directors. It was also argued that the timelines mentioned in the Ministry of Power guidelines are indicative in nature and not mandatory.

After considering the submissions, the Commission reserved its order and directed UPPCL to submit a detailed statement explaining all deviations from the originally approved bidding documents. The project is expected to support Uttar Pradesh’s efforts to manage power purchase costs while increasing the share of clean energy in its electricity mix.