SOLAR

UPERC Adopts Discovered Tariffs for 31 MW Solar Capacity, Pushing State PM-KUSUM Component C-2 Past 1 GW Mark

August 21, 2026 By Gaurav Nathani 3 min read
0:00 / 03:52

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a regulatory order for Petition No. 2377 of 2026, formally adopting discovered tariffs and approving 16 Power Purchase Agreements (PPAs) for 31 MW of solar capacity. This capacity is designated for the solarization of agricultural feeders under the PM-KUSUM framework. With this approval, the cumulative capacity cleared by the Commission under the state’s feeder-level solarization drive has officially crossed the landmark 1 GW milestone.

Background and Petition Context

The current order arises from a joint petition filed by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Ltd. (UPPCL). This filing was submitted in continuation of earlier regulatory proceedings, including Petition No. 2230 of 2025, to finalize procurement for the state’s ambitious feeder-level solarization initiative.

The administrative timeline for this procurement began with the issuance of the Notice Inviting Tender (NIT) and Request for Selection (RfS) on July 19, 2024. Following the Commission’s approval of the bidding documents and draft PPAs on December 6, 2024 (under Petition No. 2131 of 2024), UPNEDA conducted a Tariff-Based Competitive Bidding (TBCB) process. This initiative aligns with the broader objective of solarizing 1,002 substations to reach a cumulative capacity of 2,553.5 MW. Although identified as Component C-2 in source documentation, the initiative is referenced as Component-A as per the directive, targeting the provision of reliable daytime power to the agriculture sector.

Key Order Highlights and Tariff Adoption

Exercising its authority under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003, the Commission has made the following determinations:

  • Tariff Adoption: The Commission adopted the tariffs discovered through the TBCB process. While the broader scheme has seen discovered rates ranging from ₹2.20 to ₹2.99 per kWh, the 31 MW addressed in this petition primarily falls within the upper threshold of the range, specifically between ₹2.98 and ₹2.99 per kWh.
  • Approval of PPAs: UPERC granted formal approval for 16 individual PPAs (annexed as A-1 to A-16 in the petition) executed between project developers and UPPCL. These agreements are structured under the Renewable Energy Service Company (RESCO) mode with a fixed 25-year term.
  • Bidding Compliance: The Commission verified that the selection of successful bidders followed the transparent procedures established in the approved bidding documents from late 2024, ensuring no deviations occurred during the evaluation phase.
  • Administrative Adjustments: The Commission reviewed and validated procedural corrections made during the bidding phase. These included the reclassification of the Dhawarsi and Rehra substations from the Moradabad district to the Amroha district. Additionally, the Commission addressed discrepancies regarding project locations in Kanpur Dehat and Kanpur Nagar for specific annexures (pertaining to Marshall Energy Pvt. Ltd.), finding that these administrative rectifications did not compromise the transparency or competitiveness of the process.

Implementation Mandates and Next Steps

To ensure the strategic objectives of the PM-KUSUM scheme are met, the Commission has outlined the following mandates for project execution:

  • Stakeholder Directives: UPNEDA and UPPCL are directed to take proactive measures to facilitate the timely completion of the 31 MW capacity. This includes coordinating grid connectivity and ensuring developers adhere to the scheduled commencement dates.
  • Operational Objectives: The implementation is intended to optimize power purchase costs for UPPCL by replacing conventional power with cost-effective solar energy, while simultaneously guaranteeing reliable, daytime electricity for agricultural irrigation.
  • Procedural Closure: With the adoption of the tariffs and approval of the 16 PPAs, the Commission has formally disposed of Petition No. 2377 of 2026, transitioning the projects from the regulatory approval phase to active implementation.

Official Sources

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