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U.P. going green: UPERC nod to purchase of 1,500 MW solar power by state

Oct 04, 2024 09:12 PM IST

The Commission emphasised the urgency of increasing renewable energy capacity to meet renewable purchase obligation (RPO) targets

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved two Uttar Pradesh Power Corporation Limited (UPPCL) solar power procurement deals, paving the way for a combined 1,500 MW of clean energy to enter the state’s grid, people in the know of the development said.

For representation only (HT File Photo)
For representation only (HT File Photo)

“These back-to-back approvals given on October 3 are in keeping with Uttar Pradesh’s commitment to give a push to renewable energy,” they said.

In the first order, UPERC approved UPPCL’s procurement of 1,000 MW of solar power from four developers at tariffs ranging from 2.52 to Rs. 2.53 per unit.

The power will be sourced through the Solar Energy Corporation of India (SECI), which will act as an intermediary. The developers involved are Avaada GJ Green Pvt. Limited (300 MW), Sprng Power Earth Pvt. Ltd. (250 MW), ReNew Solar Steller Pvt. Ltd. (300 MW), and Solarcraft Power India 17 Pvt. Ltd. (150 MW).

In its second order, UPERC gave the nod to another 500 MW procurement by UPPCL at a uniform tariff of Rs. 2.60 per unit, also facilitated through SECI. This power will be sourced from three developers: Jakson Limited (100 MW), Shiva Corporation India Ltd. (100 MW), and ReNew Solar Power Pvt. Ltd. (300 MW).

A contentious point in both approvals was the trading margin of 7 paise per unit charged by SECI, which UPERC acknowledged could have been lower for the benefit of consumers.

Despite this, the Commission emphasised the urgency of increasing renewable energy capacity to meet renewable purchase obligation (RPO) targets. The commission urged UPPCL to negotiate better terms for future deals.

“Both deals are crucial for UPPCL’s compliance with RPO targets, which are set to increase significantly in the coming years. UPPCL’s analysis presented detailed projections of potential power deficits starting from 2028-29, justifying the need for additional capacity,” a UPPCL official said.

The procurement also aligns with the Central Electricity Authority’s resource adequacy planning report, which outlines substantial solar capacity requirements for Uttar Pradesh up to FY 2033-34.

The Union ministry of power (MoP) has increased the renewable power obligation (RPO) for discoms from 15% in 2023-24 to 29.91% in 2024-25. This means that renewable power must comprise 29.91% of the total power that UPPCL will supply to consumers.

According to its roadmap, UPPCL needs to arrange 21,500 MW of renewable power by 2031-32 to meet its RPO obligations. This includes 8,500 MW of solar power, and 6,500 MW each of wind and hydro power.

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