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UPERC Approves 1,280 MW Renewable Power Deal Between UPPCL and NHPC to Meet RPO Targets

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a power sale agreement (PSA) between Uttar Pradesh Power Corporation Limited (UPPCL) and NHPC for procuring 1,280 MW of firm and dispatchable renewable energy (FDRE). The energy will be supplied at tariffs ranging from Rs4.70 to Rs4.71 per kWh, with a trading margin of Rs0.07/kWh. However, this margin will be reduced to Rs0.02/kWh if NHPC fails to provide escrow or a revolving letter of credit to the generators.

UPPCL filed the petition to meet its Renewable Purchase Obligation (RPO), which stands at 29.91% for FY 2025. The Ministry of New and Renewable Energy (MNRE) has imposed a penalty of Rs1 million or Rs3.72/kWh for RPO shortfalls, making this agreement critical for compliance.

The Central Electricity Regulatory Commission (CERC) had earlier approved the tariffs through a transparent bidding process managed by NHPC, designating it as the nodal agency for the FDRE program. The UPERC found UPPCL’s share in the total 1,400 MW bid (1,280 MW) compliant with regulations.

The power will be supplied under six separate PPAs with leading renewable developers, including ACME, Juniper Green, and Renew Power. The move strengthens UP’s renewable energy portfolio and ensures cost-effective, firm green power.