The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved two Power Purchase Agreements (PPAs) for the development of 110 MW of grid-connected solar power projects in the state. The approval was granted under Petition No. 2360 of 2026 by a bench comprising Chairman Shri Arvind Kumar and Member Shri Sanjay Kumar Singh. The decision also confirms the competitive tariffs discovered through a transparent bidding process, paving the way for the implementation of two solar projects in Kanpur Dehat and Kanpur Nagar.
The petition was jointly submitted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Limited (UPPCL). The petition requested the Commission to approve the PPAs signed with the selected project developers and adopt the tariffs discovered through Tariff-Based Competitive Bidding (TBCB). The projects include a 75 MW solar power plant in Kanpur Dehat and a 35 MW solar power plant at Kanpur Nagar Solar Park, taking the combined project capacity to 110 MW.
The competitive bidding process began in April 2025 after receiving the necessary approvals from the Ministry of New and Renewable Energy (MNRE). During the tender process, seven developers submitted techno-commercial bids. After evaluation, six bidders qualified for the next stage, while M/s GA Infra Private Limited was disqualified because it failed to submit the required earnest money deposit in full.
The financial bids were opened after the technical evaluation, followed by an electronic Reverse Auction (e-RA) conducted in September 2025 to determine the final tariffs. M/s Vedu Infrastructure Private Limited emerged as the successful bidder for both solar projects by offering the lowest tariffs.
The tariff discovered for the 75 MW Kanpur Dehat project was Rs. 2.65 per kWh, while the tariff for the 35 MW Kanpur Nagar Solar Park project was finalized at Rs. 2.71 per kWh. These rates were accepted as the winning tariffs under the competitive bidding process.
Following the issuance of the Letters of Award in November 2025, Vedu Infrastructure Private Limited incorporated two Special Purpose Vehicles (SPVs) to execute the projects. The companies, Vedu Kanpur Dehat Solar Private Limited and Vedu Kanpur Nagar Solar Private Limited, were established specifically for the development of the respective projects. They also submitted Performance Bank Guarantees worth Rs. 15 crore and Rs. 7 crore, respectively, as required under the bidding conditions.
The PPAs between UPPCL and the two SPVs were formally signed on January 16, 2026. While reviewing the petition, UPERC observed that the bidding process had been carried out in accordance with the guidelines issued by the Government of India and met the required standards of fairness, transparency, and competition.
The Commission approved the tariffs and the PPAs, stating that the discovered tariffs would remain fixed throughout the 25-year term of the agreements from the scheduled date of commercial operation. It also directed the project developers to use only solar photovoltaic modules and cells listed under the government’s Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) lists. With these directions, UPERC approved both agreements and disposed of the petition, clearing the way for the timely development of the two solar projects and supporting Uttar Pradesh’s growing renewable energy capacity.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
