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UPERC Issues Draft Regulations for Captive and Renewable Energy Projects; Seeks Comments by May 30
May 15, 2025
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued draft regulations for captive and renewable energy generating projects, inviting stakeholder feedback by May 30, 2025. The draft lays out detailed guidelines covering tariffs, grid discipline, energy banking, power evacuation, and open access provisions.
For projects commissioned on or after April 1, 2009, developers will retain 100% of Clean Development Mechanism (CDM) proceeds in the first operational year, with the procurer's share increasing annually by 10% until reaching 50%. For multi-unit projects commissioned in different years, tariffs will be computed using the weighted average of contracted capacities.
During the synchronization to COD phase for biomass and bagasse projects, variable cost-based tariffs will apply, and a 50% Plant Load Factor (PLF) is required for full capacity charge recovery. Distribution licensees must obtain approval for power purchase agreements and submit energy receipt data from various generators.
The Commission has defined a detailed COD declaration process involving trial runs and SLDC certification. The deviation settlement mechanism (DSM) will apply to all but small hydro and municipal solar waste plants. Captive generators can use open access or purchase power from their distribution licensee.
The regulations allow energy banking with ceilings—49% for bagasse-based and 25–30% for other renewable projects. Banking is permitted in 15-minute blocks, with withdrawal based on a "first-in, first-out" basis and off-peak withdrawals restricted to off-peak hours.
Power evacuation must follow voltage-specific guidelines: up to 3 MW via 11 kV, 3–20 MW via 33 kV, and above 20 MW via 132 kV. Developers must build and maintain the evacuation infrastructure, and SLDC will handle accounting and billing.
UPERC retains the authority to amend these provisions anytime. Recently, the Commission approved a Rs5.95/kWh tariff for NIDP Developers’ 5 MW bagasse-based round-the-clock power supply.