In a significant move to mitigate projected round-the-clock (RTC) power deficits, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued an order for the adoption of a tariff of ₹2.24/kWh for a 5 MW grid-connected solar PV project. The project, situated at Saraisadi village in the Mau district, has been approved for a long-term period of 25 years. This regulatory milestone, finalized under Petition No. 2348 of 2026, marks the conclusion of a persistent procurement effort by the state to secure renewable capacity in a challenging district.
Regulatory Context and Bidding History
The Commission’s order, dated June 11, 2026, follows a hearing held on April 28, 2026. The adoption of the tariff was sought by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Ltd. (UPPCL) under Section 63 of the Electricity Act, 2003, which governs the determination of tariff through a transparent competitive bidding process.
The success of this tender is particularly noteworthy as it followed five previous failed attempts. Earlier bidding processes for the Mau district location were repeatedly cancelled due to anemic bidder participation or the receipt of only singular bids. This sixth successful attempt underscores the regulatory necessity to finalize capacity as UPPCL navigates revised Renewable Purchase Obligation (RPO) and Renewable Consumption Obligation (RCO) trajectories, aimed at addressing a substantial RTC power deficit projected to commence in FY 2029-30.
Competitive Bidding and e-Reverse Auction Results
The procurement was conducted via Tariff-Based Competitive Bidding (TBCB), culminating in an e-Reverse Auction (e-RA) on May 5, 2025. The process revealed a highly aggressive competitive spread, with the top two bidders separated by a margin of only ₹0.01/kWh.
Nexgen Digital Infrastructures Private Limited (NDIPL) emerged as the L1 bidder, successfully lowering its initial quote of ₹2.58/kWh to the final adopted rate of ₹2.24/kWh.
| Rank | Bidder Name | Quoted Tariff (₹/kWh) | Final Tariff (₹/kWh) |
| 1 (L1) | Nexgen Digital Infrastructures Pvt. Ltd. | 2.58 | 2.24 |
| 2 (L2) | GP ECO Solutions India Limited | 2.97 | 2.25 |
Technical Infrastructure and Land Allocation
The 5 MW project features specific technical requirements to ensure grid stability. According to the Letter of Award (LoA), connectivity is mandated at the 132/33 kV S/s Ghosi.
The project will be developed on 11.868 hectares of land provided by UPNEDA on a lease rent basis. The lease terms are set at ₹15,000 per acre per year for a 30-year tenure. To ensure project viability and developer commitment, NDIPL furnished a Performance Bank Guarantee (PBG) of ₹1,00,00,000 (One Crore), calculated at ₹20 Lakhs per MW. Per regulatory requirements, this PBG was required within 30 days of the LoA issuance and must remain valid for six months beyond the Scheduled Delivery Date (SDD).
Final Commission Directive
The Commission found the bidding process to be in strict compliance with the Ministry of Power (MoP) guidelines and the approved bidding documents. In its final directive, the UPERC formally approved the Power Purchase Agreement (PPA) executed on September 11, 2025.
The adopted tariff of ₹2.24/kWh is firm and fixed for the entire 25-year tenure of the PPA. With this order, the Commission has cleared the path for the project to contribute to the state’s energy mix, assisting UPPCL in meeting its long-term renewable consumption targets and bolstering the regional grid infrastructure in the Mau district.
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