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UPERC clears state’s biggest firm renewable power deal with NTPC
UP’s power demand fluctuates between 27000 and 30000 mw; additional 1,530 mw supply under the NTPC deal is expected to ease load pressure during peak hours, while contributing to India’s broader target of achieving 50% electricity capacity from non-fossil sources by 2030
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LUCKNOW The UP Electricity Regulatory Commission (UPERC) has approved the Uttar Pradesh Power Corporation Limited’s (UPPCL) proposal to procure 1,530 mw of firm and dispatchable renewable energy (FDRE) from NTPC, giving a major push to the state’s clean energy portfolio.
At present, the state’s total power demand fluctuates between 27,000 and 30,000 mw, depending on the season. The additional 1,530 mw supply under the NTPC deal is expected to ease load pressure during peak hours, particularly in summer months, while contributing to India’s broader target of achieving 50% electricity capacity from non-fossil sources by 2030.
The order, issued on October 14, grants consent to the Power Supply Agreement (PSA) signed between UPPCL and NTPC on April 11 this year. This is believed to be the largest FDRE procurement cleared by the state regulator so far, marking a significant shift towards dependable renewable power in Uttar Pradesh.
FDRE refers to green power — mainly solar, wind or hybrid — that can be supplied on demand, like conventional power from thermal stations. This power is particularly useful for meeting peak demand, which in UP occurs at night when solar generation is not possible due to the absence of sunlight.
Under the arrangement, NTPC will supply 1,530 mw of renewable energy that can be dispatched on demand every day, ensuring a steady and predictable supply, unlike conventional solar or wind generation that fluctuates with weather conditions. The commission has outlined conditions for compliance, timelines for implementation and performance monitoring to ensure the delivery of reliable green power as per the agreement.
Officials said the arrangement would help UPPCL strengthen its renewable energy mix and reduce dependence on coal-based generation. “Unlike conventional renewable projects that produce power only when the sun shines or wind blows, the approved FDRE arrangement ensures assured supply during peak hours through storage or hybrid backing, making clean energy both reliable and grid-ready,” said UPPCL director (corporate planning) Deepak Raizada.
The commission noted that such firm and dispatchable renewable arrangements are crucial for integrating clean energy into the grid without compromising reliability.
“Though the order does not immediately alter consumer tariffs, the financial implications of integrating this renewable power will be reflected once actual supply begins and cost data is finalised,” a UPERC official said.
The approval also sets a precedent for future large-scale renewable energy procurement by UPPCL. In recent months, UPERC has admitted similar but smaller petitions for renewable and hybrid power with storage components.
The NTPC, through its special purpose vehicle (SPV) – NTPC Green Energy Ltd (NGEL), is setting up quite a few solar plants, independently or in joint ventures in UP. The UPPCL will buy power from these plants to decrease its dependence on coal-based power and meet the renewable power obligation (RPO) targets.
As per the year-wise RPO roadmap laid out by the Union ministry of power and the UPERC, UP has to contract 43.33% of its total power demand from renewable sources by 2029-30 and the UPPCL has targeted contracting 23,500 mw by 2031-32.
