01 Oct 2019
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has slashed solar power tariffs to a record low of nearly Rs 3 per unit, as it cleared competitive bidding for procurement of 550 megawatt (mw) by state utilities. The approved tariffs range from Rs 3.02 per unit to Rs 3.08 per unit, which ranks among the lowest power procurement price approved by the energy regulator for solar projects.
The order was passed by the regulator on a petition filed jointly by UP Power Corporation Limited (UPPCL), UP New and Renewable Energy Development Agency (UPNEDA) and Noida Power Company Limited (NPCL). The capacity of approved solar projects for their procurement ranges from 25 mw to 100 mw.
With the fresh order, the UPERC approved tariff and power purchase agreements (PPA) for procurement of 500 mw by UPPCL and other state owned power distribution companies (discoms), apart from 50 mw by NPCL.
According to UPERC, while lower tariffs for solar power would reduce the overall power purchase cost of the discoms, it would help UPPCL in meeting its Renewable Purchase Obligation (RPO) and the state in harnessing the potential of solar power.
Earlier this month, the Commission, while disposing of another petition filed jointly by UPPCL/discoms and UPNEDA, had fixed solar power tariff of Rs 3.17 per unit to Rs 3.23 per unit for the procurement of 500 mw through competitive bidding process. The capacity of the approved solar projects ranged between 20 mw and 140 mw.
A press release of UPERC said successive reduction in solar power tariffs in the state to the current level of approximately Rs 3 to Rs 3.23 per unit would “significantly enhance the solar portfolio basket of the licensees at a very cost effective price. This will help the licensees in a big way to achieve their RPO trajectory.”
Last month, the state had cleared the proposal of renewable energy majors ReNew Power and Shapoorji Pallonji to collectively invest nearly Rs 750 crore in a 150 mw floating solar power project in UP. The project would come up at the existing Rihand hydro power project of UP Jal Vidyut Nigam Limited (UPJVNL) in Sonbhadra district.