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UPERC Approves Tariffs for 110 MW Solar Projects in Kanpur Dehat and Kanpur Nagar

July 15, 2026 By Gaurav Nathani 4 min read
0:00 / 04:31

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has cleared the path for a major expansion of Kanpur’s clean energy infrastructure by approving power purchase agreements (PPAs) and adopting tariffs for 110 MW of grid-connected solar capacity. This approval represents a significant milestone for utility-scale solar development in the state, achieved through a process of transparent competitive bidding.

Vedu Infrastructure Pvt. Ltd. will spearhead the development across the Kanpur Dehat and Kanpur Nagar districts. Under a 25-year contractual framework, the power generated will be supplied to the Uttar Pradesh Power Corporation Limited (UPPCL), addressing the region’s mounting electricity demand while fortifying the state’s renewable energy portfolio.

Project and Tariff Breakdown

The approved 110 MW capacity is split between two distinct utility-scale sites, with the specific tariff and capacity details outlined below:

Project LocationKey Specifications
Kanpur Dehat75 MW Capacity; Approved Tariff: ₹2.65/kWh
Kanpur Nagar35 MW Capacity; Approved Tariff: ₹2.71/kWh

These projects will be executed through two dedicated Special Purpose Vehicles (SPVs) incorporated by Vedu Infrastructure: Vedu Kanpur Dehat Solar Pvt. Ltd. and Vedu Kanpur Nagar Solar Pvt. Ltd.

Bidding Process and Organizational Structure

The projects were awarded through a Tariff-Based Competitive Bidding (TBCB) process conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The final tariffs were discovered during an e-reverse auction held in September 2025.

Aligned with the Ministry of New and Renewable Energy’s (MNRE) Solar Parks Scheme, this development utilizes a structured procurement model designed to streamline large-scale solar deployment. By leveraging transparent competitive bidding, the state continues to attract private investment while ensuring cost-effective power procurement for its utilities.

Regulatory Mandates and Economic Context

UPERC’s approval includes several strict regulatory mandates and economic guardrails. The Commission has directed the developer to utilize solar modules and cells that comply with the Approved List of Models and Manufacturers (ALMM) as per MNRE guidelines.

Furthermore, the Commission has established definitive “Change in Law” guardrails to protect the utility and consumers from future price hikes. Notably, the developer has assumed the full financial risk for these projects, as they are ineligible for future compensation related to ALMM requirements or revisions to Basic Customs Duty (BCD). The Commission deemed the tariffs competitive primarily because a reduction in GST on solar power generators improved the project economics, effectively offsetting the lack of BCD and ALMM compensation.

Details to Watch: As the projects move toward the construction phase, several technical and scheduling disclosures are still pending, including:

  • The specific module technology to be employed.
  • The projected annual energy generation.
  • Final commissioning and grid-synchronization dates.

Regional Renewable Energy Status

The 110 MW Kanpur projects are a vital addition to Uttar Pradesh’s expanding solar park pipeline, directly contributing to the 2,000 MW currently classified as “under construction” in the state. This progress occurs against a backdrop of significant national growth; India successfully achieved 197.19 GW of installed renewable energy capacity (excluding large hydro) by the end of September 2025.

According to current Central Electricity Authority (CEA) data, the status of Solar Parks and Ultra Mega Renewable Energy Power Parks (UMREPPs) in Uttar Pradesh is as follows:

  • Total Envisaged Capacity: 3,840 MW
  • Capacity Under Construction: 2,000 MW
  • Capacity Already Commissioned: 430 MW

The approval of these new facilities in Kanpur Dehat and Kanpur Nagar reinforces the state’s role in India’s broader energy transition, providing a sustainable and clean solution to meet the rising demand for electricity across the region.

Official Source Citations

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