Kanpur receives 110 MW additional solar power capacity after the Uttar Pradesh Electricity Regulatory Commission (UPERC) approved power purchase agreements (PPAs) and set prices for two grid-connected solar projects to be built in the districts of Kanpur Dehat and Kanpur Nagar. A 75 MW solar plant in Kanpur Dehat and a 35 MW project in Kanpur Nagar are among the projects that will supply electricity to Uttar Pradesh Power Corporation Limited (UPPCL) for 25 years.
The projects were awarded to Vedu Infrastructure Pvt Ltd through a tariff-based competitive bidding (TBCB) process conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). Following the award, the company incorporated two special purpose vehicles (SPVs) — Vedu Kanpur Dehat Solar Pvt Ltd and Vedu Kanpur Nagar Solar Pvt Ltd — for implementation of the projects.
The discovered tariffs stood at Rs 2.65 per unit for the 75 MW Kanpur Dehat project and Rs 2.71 per unit for the 35 MW Kanpur Nagar project after an e-reverse auction held in September 2025. Vedu Infrastructure emerged as the lowest bidder for both projects.
UPNEDA had floated the tender in April 2025 for setting up the projects under the RESCO model. Seven companies, including NLC India, Oriano Clean Energy, Purvah Green Power and Oriana Power, had participated in the bidding process, with six bidders qualifying for the financial round.
According to the order, the tariffs were found to be competitive after factoring in the reduction in GST on solar power generators from 12% to 5%, which lowered the composite GST incidence on solar projects to 8.9% from 13.8%. The financial evaluation undertaken by Ernst & Young LLP concluded that the discovered tariffs were aligned with prevailing market benchmarks and regional solar irradiation levels.
The Commission further stated that, in accordance with directives from the Ministry of New and Renewable Energy (MNRE), both projects would have to purchase solar modules and cells from producers listed on the Approved List of Models and Manufacturers (ALMM). Due to ALMM restrictions or fundamental changes pertaining to customs duties, developers would not be able to request any “change in law” compensation.
In addition to fulfilling the growing need for power in the Kanpur region, the installation of 110 MW of solar capacity is anticipated to bolster Uttar Pradesh’s renewable energy portfolio and assist the state’s attempts to enhance clean energy procurement.
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