Uttar Pradesh Power Corporation Limited (UPPCL) has secured approval for a 25-year contract to purchase 500 MW of solar power, aiming to meet the increasing energy demand in the state. This acquisition will be facilitated through a competitive bidding process under the Solar Inter-State Transmission System Scheme.
The Central Electricity Regulatory Commission (CERC) has established a rate of Rs 2.60 per kWh for the electricity, which will be provided by three solar developers. Additionally, a trading margin of Rs 0.07 per kWh will be applicable. However, this margin could be reduced to Rs 0.02 if the Solar Energy Corporation of India (SECI) fails to offer adequate payment security measures, such as an escrow or revolving credit letter, to the developers.
Agreements between UPPCL and SECI have also received the green light, laying the foundation for the project. The commission has encouraged UPPCL to negotiate more favorable trading margins in future agreements, ensuring greater benefits for consumers. With this clearance, UPPCL is advancing its strategy to enhance renewable energy production in Uttar Pradesh.