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Uttar Pradesh Electricity Regulatory Commission (UPERC) Approves UPPCL-NHPC Solar PSA for 1,525 MW at Rs2.52/kWh Tariff

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a major solar power agreement between the Uttar Pradesh Power Corporation Ltd (UPPCL) and NHPC for procuring 1,525 MW of solar energy. This includes a Power Sale Agreement (PSA) and a Supplementary PSA (SPSA). Originally, UPPCL was to procure 1,500 MW, but an extra 25 MW—initially assigned to the Military Engineering Services (MES)—was added after MES didn’t finalize the deal.

NHPC, acting as the central renewable energy procurer under MNRE’s guidance, had conducted a bidding process for 3,000 MW of interstate transmission system (ISTS)-connected solar projects. The winning tariff was Rs2.52/kWh, which had already been approved by the Central Electricity Regulatory Commission (CERC). UPERC accepted this tariff and allowed a trading margin of Rs0.07/kWh, but warned that if NHPC doesn't provide financial security like a letter of credit, the margin will be capped at Rs0.02/kWh.

UPERC also reminded NHPC to consult procurers like UPPCL before floating large-scale tenders to avoid delays. This decision helps UPPCL meet its Renewable Purchase Obligation (RPO) and ensures lower power costs for consumers. In a separate move, UPERC approved a higher Rs5.95/kWh tariff for 5 MW of bagasse-based RTC power for a short-term supply period in 2025.