Noida Power Company (NPCL) has sought approval from the Uttar Pradesh Electricity Regulatory Commission (UPERC) to procure 300 MW of firm and dispatchable renewable energy on a round-the-clock (RTC) basis for 25 years. The proposal forms part of NPCL’s latest petition and involves a tariff-based competitive bidding process, along with requests for deviations from Ministry of Power guidelines issued on June 9, 2023.

NPCL has proposed awarding the entire 300 MW capacity to a single successful bidder. This would require an exception to the bidding guidelines, which limit allocation to 50 per cent of the bid capacity for one bidder. NPCL has argued that the relatively small size of the tender supports allocating the full capacity to one developer.

The proposed procurement is intended to provide firm power rather than intermittent renewable generation. During the hearing, UPERC sought clarification on the capacity utilisation factor. NPCL stated that the project would require a minimum annual capacity utilisation factor of 75 per cent, including 50 per cent during off-peak hours and 90 per cent during identified peak periods.

The procurement is expected to involve renewable energy projects supported by energy storage systems so that electricity can be supplied in line with RTC requirements. NPCL has also sought approval for the draft Request for Selection and Power Purchase Agreement documents. UPERC has asked the company to provide details of the proposed earnest money deposit, performance bank guarantee and net-worth requirements.

The regulator has additionally sought justification for provisions permitting a third-party arrangement for the storage system and for calculating consortium financial requirements according to each member’s equity commitment. It has also raised questions about the proposed Commissioning Committee and the debarment of a Renewable Power Developer under the draft agreement.

UPERC has directed NPCL to submit its explanations within two weeks of the order. The regulator has allowed NPCL to continue preparing bidding documents and issue a corrigendum if required, subject to its final decision. The proposed procurement could establish a long-term RTC renewable power framework in Uttar Pradesh, although the final structure remains subject to regulatory approval.