Lucknow: UP Power Corporation Limited (UPPCL) has been approved to buy 500 MW of solar power through a 25-year agreement. The deal, aimed at meeting rising energy needs in Uttar Pradesh, will be handled through a competitive bidding process under the Solar Inter-State Transmission System Scheme.
The Central Electricity Regulatory Commission (CERC) has set a tariff of Rs 2.60 per kWh for the power, which will be supplied by three solar developers. A trading margin of Rs 0.07 per kWh will apply, but this could drop to Rs 0.02 if the Solar Energy Corporation of India (SECI) doesn’t provide solid payment security, like an escrow or a revolving credit letter, to the developers.
UPPCL’s agreements with SECI have also been approved, setting the groundwork for the project. The commission advised UPPCL to negotiate lower trading margins in future deals to benefit consumers. With this approval, UPPCL is moving forward with its plan to boost renewable energy in the state.
