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UPERC Clears Tariffs for 93.4 MW of PM-KUSUM Feeder Solar Projects

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the tariffs and execution of 28 power purchase agreements for grid-connected solar power projects with a combined capacity of 93.4 MW under Component C-2 of the PM-KUSUM programme.

The approved tariffs for the projects range between Rs 2.80 and Rs 2.98 per unit, as determined through a tariff-based competitive bidding process.

The petition seeking tariff adoption and approval of the PPAs was jointly filed by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Limited (UPPCL). The petition pertained to 28 substations where solar capacity has reached the PPA execution stage.

These projects form part of UPNEDA’s feeder-level solarisation tender issued under PM-KUSUM Component C-2, which targets a total capacity of 2,553.5 MW following a downward revision from the originally approved 3,205 MW. Under the tender, bids were received for 494 substations aggregating 1,529.1 MW, along with additional bids for 72 substations totaling 157.3 MW. Letters of award were subsequently issued for 566 substations with a cumulative capacity of 1,686.4 MW.

The petitioners submitted that the bidding process was conducted in a transparent manner in accordance with the applicable central government guidelines. They stated that the discovered tariffs were competitive and reflective of prevailing market conditions and requested the Commission to adopt the tariffs under Section 63 of the Electricity Act, 2003, to facilitate financial closure and timely project execution.

UPPCL confirmed that the PPAs were executed strictly in line with the approved bidding documents and highlighted that regulatory approval was critical for meeting commissioning timelines and optimizing power procurement costs for agricultural feeders.

After examining the submissions and records, UPERC observed that the tariffs were discovered through open and competitive bidding. The Commission noted that the accepted tariff range of Rs 2.80 to Rs 2.98 per unit aligned with the tariff band observed in the overall tender and was consistent with market trends for similar solar projects.

The Commission also observed that the 25-year PPAs would help distribution licensees reduce dependence on conventional power sources for agricultural supply, enhance daytime power availability, and lower technical and commercial losses.

Based on its findings, UPERC adopted the discovered tariffs and approved the execution of the 28 PPAs totaling 93.4 MW. The Commission further advised UPNEDA and UPPCL to actively support project developers to ensure timely commissioning and effective achievement of PM-KUSUM objectives.

UPERC had earlier approved 25 PPAs aggregating 71.9 MW under the same tender.