UPERC Approves 20 MW Floating Solar Project at Chilwa Tal, Gorakhpur; Coal India Limited to Execute for UPNEDA and UPPCL under Solar City Initiative

Regulatory Approval and Norm Relaxation

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a regulatory approval for the development of a 20 MW floating solar PV project at Chilwa Tal, Gorakhpur. The decision was reached following a joint petition submitted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Ltd (UPPCL).

To facilitate the project, the Commission exercised its authority to relax standard competitive bidding norms. This regulatory bypass was processed under the UPERC Captive and Renewable Energy Generating Plants Regulations, 2024, and the Modalities of Tariff Determination Regulations, 2023. The Commission justified this departure from Section 63 (competitive bidding) by citing the “unique site location” and the significant administrative complexities involved in land and water body aggregation.

Project Execution and Stakeholder Collaboration

Coal India Limited (CIL) has been designated as the project executor, while UPPCL will serve as the long-term power procurer. The project requires a coordinated multi-stakeholder framework to navigate the existing encumbrances of the Chilwa Tal site.

Physical Parameters and Stakeholder Roles:

• Total Water Body Area: Approximately 80.73 acres.
• Stakeholders: The project site involves the UP Tourism Department, Hindustan Urvarak & Rasayan Limited (HURL), and Mahayogi Gorakhnath University.
• Land Provision: The UP Tourism Department has agreed to provide its portion of the water body free of cost.
• Aggregation Challenges: While the Tourism Department’s contribution is clear, land and water rights held by other entities, including Mahayogi Gorakhnath University and HURL, contributed to the administrative hurdles that necessitated the relaxation of bidding norms.

Generation Capacity and Strategic Impact

The 20 MW facility is a primary component of the “Solar City” initiative for Gorakhpur, recently cleared by the Uttar Pradesh Cabinet to enhance the state’s renewable energy footprint.

• Projected Power Output: The project is projected to generate approximately 38.56 million units of electricity annually during the 2026-27 period.
• Local Impact: This generation is expected to meet approximately 3.24% of Gorakhpur’s total projected power demand for the 2026-27 fiscal year.
• Strategic Alignment: The initiative aligns with state goals to transform Gorakhpur into a sustainable energy hub through large-scale renewable interventions and localized generation.

Commercial Framework and Tariff Determination

Power procurement for the Chilwa Tal project will be governed by a Cost-Plus Power Purchase Agreement (PPA) under Section 62 of the Electricity Act, 2003.

Regulatory Jurisdiction and Ad-Hoc Powers: While UPERC oversees the project’s state-level initiation, final tariff determination falls under the jurisdiction of the Central Electricity Regulatory Commission (CERC), pursuant to Section 79(1)(a) of the Electricity Act, 2003.

In terms of legal authority, the CERC utilizes ad-hoc regulatory powers under Section 79(1) to address specific project configurations. As reaffirmed by the Supreme Court in Power Grid Corporation of India Ltd. v. MPPTCL, Section 79(1) allows the Commission to issue individualized orders to fill “regulatory gaps” where general regulations under Section 178 may be silent. Furthermore, such ad-hoc orders remain subject to appellate scrutiny under Section 111 of the Electricity Act, ensuring that these decisions are appealable to the Appellate Tribunal for Electricity (APTEL).

Financial Indications:

• Tentative Tariff: Regulatory hearings have indicated a tentative tariff of approximately ₹3.50 per kWh.
• Procurement Rationale: The bypass of competitive bidding was deemed necessary due to the site-specific technical and administrative constraints that would have rendered a standard tender impractical.

Project Site Environmental and Operational Context

The Chilwa Tal site is currently a hub of industrial activity, presenting significant operational complexities for a solar installation.

Existing Encumbrances and Usage:

• Industrial Water Rights: Hindustan Urvarak & Rasayan Limited (HURL) holds a 30-year lease agreement with the Nagar Nigam of Gorakhpur (dating from June 2020) for the consumption of water from Chilwa Tal for process and utility needs. This agreement permits HURL to source 1,450 cubic meters of water per hour.
• Operational Maintenance: To maintain water storage capacity for industrial use, HURL has engaged in extensive deepening and dredging of the Tal.
• Local Impact of Operations: Material resulting from HURL’s dredging activities is utilized for “land filling in the nearby locality,” illustrating the continuous physical management of the site.

The Commission’s decision to grant regulatory relaxation was primarily driven by these constraints. The coexistence of industrial water sourcing, a long-term municipal lease, and the floating nature of the PV arrays created a “unique site location” that precluded the feasibility of a standard competitive bidding process.