UPERC Rejects NPCL’s 300 MW Long-Term Wind-Solar Hybrid Power Procurement Proposal

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has rejected a petition filed by Noida Power Company Limited (NPCL) seeking approval to procure 300 MW of wind-solar hybrid power through a long-term agreement. The proposal involved a 25-year power purchase arrangement through a tariff-based competitive bidding process. NPCL had also requested permission to deviate from the central government’s bidding guidelines by allowing the entire capacity to be awarded to a single bidder. The company argued that the procurement was necessary to meet its projected power shortages from the financial year 2028-29 onwards, while also fulfilling its Renewable Consumption Obligations (RCO).

In its submission before the Commission, NPCL stated that wind-solar hybrid power was the most suitable and cost-effective option for its future power requirements. According to the utility, other renewable alternatives, such as Firm and Dispatchable Renewable Energy (FDRE) or standalone solar projects supported by Battery Energy Storage Systems (BESS), would either generate surplus electricity during non-peak hours or fail to meet the increasing demand during evening and night peak periods. NPCL also submitted a cost comparison claiming that prevailing FDRE tariffs were around ₹4.85 per unit, making hybrid power a more economical choice.

However, the Commission found several shortcomings in the proposal. During the proceedings, it observed that NPCL had overestimated the prevailing FDRE tariff. The regulator pointed out that it had already approved similar FDRE contracts for other distribution companies at much lower tariffs ranging from ₹4.25 to ₹4.38 per unit. UPERC also referred to the Resource Adequacy Plan prepared for NPCL by the Central Electricity Authority (CEA), which did not specifically recommend standalone hybrid power. Instead, the CEA suggested maintaining a balanced mix of coal-based generation, solar, wind, and energy storage to ensure long-term reliability.

The Commission also raised concerns over NPCL’s increasing dependence on short-term market purchases to bridge its future power deficits. It noted that only about 27% of the utility’s current long-term power portfolio is backed by coal-based generation, exposing it to fluctuating electricity prices during peak demand periods. Considering the expected rise in electricity demand from industrial growth in Greater Noida and major developments such as the upcoming Jewar Airport, the regulator stressed the importance of securing dependable long-term power sources.

UPERC concluded that the proposed hybrid procurement was neither the most economical option nor aligned with the CEA’s planning recommendations. It observed that paying hybrid tariffs for solar generation was not financially prudent when standalone solar power is available at tariffs between ₹2.50 and ₹2.70 per unit. Accordingly, the Commission rejected NPCL’s petition and advised the utility to prioritize long-term contracts for firm power, including coal-based or round-the-clock renewable energy, while limiting intermittent renewable procurement to medium-term arrangements.