The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved 10 power purchase agreements (PPAs) covering a total solar capacity of 19.7 MW under Component C-2 of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme. The Commission has adopted tariffs ranging from ₹2.91 to ₹2.99 per kWh for the projects, which are intended to support agricultural feeder solarisation across Uttar Pradesh.
The approval was issued under Petition No. 2412 of 2026, jointly filed by Uttar Pradesh Power Corporation Limited (UPPCL) and the U.P. New and Renewable Energy Development Agency (UPNEDA).
Under PM-KUSUM Component C-2, grid-connected solar power plants supply electricity to designated agricultural feeders, helping provide daytime power to farmers while reducing dependence on conventional electricity sources. The initiative also aims to expand distributed solar generation and improve the economics of agricultural power supply.
Competitive Bidding Determines Solar Tariffs
UPNEDA conducted the procurement process through a tariff-based competitive bidding (TBCB) framework. Following the bidding exercise, a Bid Evaluation Committee assessed the submissions and selected the successful developers. Letters of Award (LoAs) were subsequently issued, and the resulting PPAs were submitted to UPERC for approval.
The Commission’s order covers projects developed by the following companies:
- Divy Power Private Limited
- Thind Solar Private Limited
- Shakti Renews Private Limited
- Babna Solar Energy Private Limited
- Choumuhan Solar Energy Private Limited
- Khospura Solar Energy Private Limited
- Nanauta Solar Energy Private Limited
- Bhaskar Renewable Energy Private Limited
- APS Developers
The approved projects are spread across several districts, including Hapur, Amroha, Kanpur Nagar, Farrukhabad, Mathura, Saharanpur and Chitrakoot. The PPA approvals enable the selected developers to proceed with the contractual arrangements required for project implementation, subject to the applicable terms and conditions.
UPERC Directs Action Over Earlier Project Defaults
During the proceedings, UPERC also reviewed the status of earlier project allocations under the broader agricultural feeder solarisation programme. The Commission noted that certain previously issued LoAs had been cancelled after the concerned developers failed to submit the required bank guarantees.
Bank guarantees serve as financial safeguards to ensure that developers meet bidding conditions and fulfil their project commitments. In response to the defaults, the Commission directed UPPCL to pursue the cases involving the concerned entities and take appropriate action to forfeit the applicable guarantees.
The recovered amounts are to be deposited with the Ministry of New and Renewable Energy (MNRE) in accordance with the relevant guidelines.
Solarisation to Support Agricultural Power Supply
The latest approval adds to Uttar Pradesh’s efforts to expand solar power generation under PM-KUSUM. By connecting solar plants to agricultural feeders, the programme seeks to improve daytime electricity availability for farmers and reduce the burden associated with conventional power procurement.
The adoption of competitively discovered tariffs between ₹2.91 and ₹2.99 per unit provides a framework for electricity procurement from the approved projects. Timely implementation will be important to realise the expected benefits for agricultural consumers and the state’s distribution utility.
The 19.7 MW approval also supports the wider expansion of distributed renewable energy in Uttar Pradesh, where feeder-level solarisation is intended to strengthen agricultural electricity supply, improve power procurement efficiency and advance the state’s clean energy objectives.
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