The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the tariffs and execution of 28 power purchase agreements (PPAs) for grid-connected solar power projects with a combined capacity of 93.4 MW under Component C-2 of the PM KUSUM scheme. The approved tariffs range from ₹2.8 (~$0.03115) to ₹2.98 (~$0.03327) per kilowatt-hour.
The projects form part of a feeder-level solarization initiative launched by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) under PM KUSUM Component C-2. The scheme initially targeted a total capacity of 3,205 MW, which was later revised to 2,553.5 MW. Under the tender, bids were received for 494 substations totaling 1,529.1 MW, with additional bids for 72 substations aggregating 157.3 MW. Letters of award have been issued for 566 substations, representing a cumulative capacity of 1,686.4 MW.
The current petition, filed jointly by UPNEDA and the Uttar Pradesh Power Corporation Ltd. (UPPCL), pertains specifically to 28 substations where solar projects totaling 93.4 MW have reached the PPA execution stage. The petitioners stated that the bidding process was conducted transparently through a tariff-based competitive bidding mechanism and that the discovered tariffs were competitive and reflective of prevailing market conditions. They requested the Commission to adopt the tariffs under Section 63 of the Electricity Act, 2003, and approve the executed PPAs to enable financial closure and timely project implementation.
UPPCL confirmed that the PPAs were executed in accordance with the approved bidding documents, emphasizing that regulatory approval was crucial for meeting commissioning timelines and optimizing power procurement costs for agricultural supply.
Commission’s Analysis
The Commission observed that the tariffs were discovered through open and competitive bidding in line with applicable central government guidelines. Examining the tariffs submitted by successful bidders, UPERC noted that the accepted tariffs for the 28 projects ranged from ₹2.8 to ₹2.98 per kWh, which fell within the tariff band discovered in the overall tender and were consistent with market trends for similar solar projects.
The 25-year PPAs are expected to help the distribution licensee reduce reliance on conventional power sources for agricultural feeders, improve daytime electricity availability, and lower technical and commercial losses.
After reviewing the submissions and documents on record, UPERC approved the execution of the 28 PPAs totaling 93.4 MW and adopted the discovered tariffs. The Commission also advised UPNEDA and UPPCL to actively support project developers to ensure timely commissioning, thereby fulfilling the objectives of the PM KUSUM scheme.
Earlier, the Commission had approved 25 PPAs totaling 71.9 MW under the same tender.
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