The Uttar Pradesh Electricity Regulatory Commission (UPERC) has initiated the legal process to consider granting a parallel electricity distribution license to Adani Energy Solutions Step Eleven Limited (AESSEL) for a data centre park in Noida.
AESSEL, along with Adani Energy Solutions Limited (AESL), has filed a petition seeking permission to distribute and supply electricity within the Data Centre Park being developed by DC Development Noida Limited (DCDNL) at Plot 20, Sector 62, Noida.
The proposed data centre project is linked to the Uttar Pradesh Data Centre Policy, 2021. DCDNL was established by Adani Enterprises Limited to develop and maintain the physical infrastructure of the park. However, as DCDNL does not have specialised expertise in electricity distribution, it appointed AESSEL to design, develop and operate the internal power distribution network.
AESSEL is a special purpose vehicle supported by AESL, which has experience in the power transmission and distribution sector. The applicants have argued that AESSEL has the necessary technical, operational and financial capabilities to undertake electricity distribution activities for the proposed data centre development.
During its initial review, UPERC sought clarification on AESSEL’s legal status, its relationship with DCDNL and its technical and financial qualifications. In response, the applicants submitted legal opinions, financial documents and revised agreements between the entities.
The applicants also maintained that the provisions of the Uttar Pradesh Data Centre Policy allow a data centre developer, as well as its designated operator or associate, to seek an electricity distribution licence. They further argued that AESSEL can rely on the technical expertise and financial strength of AESL for undertaking the proposed distribution operations.
The applicants referred to a Supreme Court judgment while explaining the meaning of terms such as “operator” and “associate” used in government policy. They argued that such terms should be understood in their ordinary and practical sense rather than being restricted to narrow corporate definitions.
AESSEL has also provided an undertaking concerning the continuation of the proposed distribution arrangement. According to the applicants, if DCDNL stops operating the data centre, the power supply agreement would automatically terminate, and AESSEL would surrender the distribution license.
The proposed distribution area currently includes the approved portion of the data centre park in Sector 62. The applicants have also indicated plans to cover adjoining plots and a proposed facility in Sector 80, Noida. However, UPERC has clarified that the initial licence consideration will be limited to areas having valid permissions and Letters of Comfort (LOC). Any expansion can be considered later after the required approvals are obtained.
Following its preliminary assessment, UPERC has directed AESSEL to proceed with the next stage of the licensing process. The company must publish public notices in at least two English and two Hindi daily newspapers, inviting objections and suggestions within 30 days.
AESSEL has also been directed to upload the complete petition on its website and obtain No Objection Certificates from relevant state and central authorities, including defence authorities where applicable. Proof of newspaper publication must be submitted to UPERC within two weeks.
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