UERC Rejects Petition To Cut Solar CUF Norm From 19% To 17% In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has dismissed a petition filed by the RE Power Generators Society seeking a reduction in the normative Capacity Utilization Factor (CUF) for solar power projects in the state from 19% to 17%. The petitioner had also requested a corresponding increase in the generic tariff applicable to solar projects.

The order was passed by a bench comprising UERC Chairman M.L. Prasad, Member (Law) Anurag Sharma, and Member (Technical) Prabhat Kishor Dimri after hearing arguments concerning the maintainability of the review petition.

The RE Power Generators Society, representing solar developers in Uttarakhand, argued that the existing 19% CUF benchmark does not adequately reflect the state’s geographical and climatic conditions. According to the petitioner, mountainous terrain creates horizon shading, while the availability of non-contiguous land makes optimal south-facing panel orientation difficult. The society also cited extreme weather conditions and grid disruptions as factors affecting solar generation.

Based on operational data obtained from Uttarakhand Power Corporation Ltd. (UPCL) through the Right to Information (RTI) mechanism, the petitioner claimed that older polysilicon-based solar plants achieve around 17% CUF, while newer monosilicon plants record an average CUF of approximately 15%. It also pointed to the 17% benchmark used by the Central Electricity Authority (CEA) for national long-term modelling.

UPCL and the Uttarakhand Renewable Energy Development Agency (UREDA) opposed the petition. UPCL argued that a state-wide technical parameter could not be changed through an individual petition and that reducing the CUF norm could increase power procurement costs for distribution utilities, potentially affecting consumers. It also presented data indicating that several solar plants in both plain and hilly regions have achieved or exceeded the existing 19% CUF benchmark.

UREDA submitted that technological improvements, including PERC and TOPCon modules, along with stricter efficiency requirements at the central level, could support higher generation from solar projects.

The commission examined the provisions cited by the petitioner, including Regulations 54 and 55 of the UERC Renewable Energy Regulations, 2023, and Regulation 59 of the UERC Conduct of Business Regulations, 2014.

UERC ruled that its power to relax regulations is intended for specific cases involving undue hardship and cannot be used to introduce permanent changes to state-wide parameters. It further held that amendments to general regulations require the prescribed regulatory process, including issuing draft amendments and inviting public comments.

The commission also clarified that inherent powers cannot be used to bypass the statutory procedure. It noted that while benchmark capital costs may be reviewed annually, normative technical parameters such as CUF are fixed for the five-year control period to provide regulatory certainty.

Consequently, UERC declared the petition non-maintainable and rejected the request to reduce the CUF benchmark and revise the solar tariff.