The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued an order on Petition No. 2418 of 2026 filed by Noida Power Company Limited (NPCL), seeking approval for the long-term procurement of 300 MW of renewable energy on a round-the-clock (RTC) basis with Energy Storage Systems (ESS).
NPCL has proposed to procure the power through a competitive tariff-based bidding process. The proposed Power Purchase Agreement (PPA) will have a tenure of 25 years. The procurement is aimed at ensuring a reliable and continuous supply of renewable power with the support of energy storage.
A major issue raised by NPCL is a proposed deviation from Clause 6.3 of the Ministry of Power’s Firm and Dispatchable Renewable Energy (FDRE) Guidelines. Under the existing provision, a single bidder can generally receive a maximum allocation of 50% of the total bid capacity. However, NPCL has requested permission to allocate the entire 300 MW capacity to a single successful developer, citing the relatively small size of the procurement.
During the hearing held on September 3, 2026, NPCL also explained the proposed Capacity Utilization Factor (CUF) requirements for the project. The company has proposed a minimum annual CUF of 75%, with a minimum CUF of 50% during off-peak hours and 90% during designated peak hours.
To avoid delays in the procurement process, UPERC has allowed NPCL to upload and issue the tender documents, including the draft Request for Selection (RfS) and draft PPA. The Commission said that any required corrigendum could be issued after the final order is released.
However, UPERC stressed that NPCL must complete all necessary pre-requisites to ensure that power supply begins as scheduled. The Commission also highlighted the risks associated with awarding the entire capacity to a single developer.
Before taking a final decision, UPERC has directed NPCL to provide detailed explanations on several technical, financial and contractual provisions within two weeks from the date of the order. These include the proposed Earnest Money Deposit (EMD), Performance Bank Guarantee (PBG) and net worth requirements.
NPCL has also been asked to justify provisions permitting third-party tie-ups for ESS, financial requirements for consortiums, and deviations from specific RfS provisions compared with the Ministry’s guidelines. The company must further provide details of the proposed Commissioning Committee and explain the debarment provisions applicable to renewable power developers under the draft agreement.
UPERC stated that a final decision on the proposed 300 MW RTC renewable energy procurement will be taken after examining NPCL’s response to the Commission’s queries. The order was issued by the Commission comprising Chairman Arvind Kumar, Member Sanjay Kumar Singh and Member (Law) Griesh Kumar Vaish.
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