UPERC Approves 300 MW Renewable Energy Procurement for NPCL
POWER & RENEWABLE ENERGY

UPERC Approves 300 MW Renewable Energy Procurement for NPCL

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved Noida Power Company’s (NPCL) proposal to procure 300 MW of firm and dispatchable renewable energy on a round-the-clock basis. The long-term procurement is intended to address projected energy and peak-demand deficits in NPCL’s licensed area of Greater Noida from FY 2028-29.

UPERC said the proposal aligns with earlier directions requiring the distribution utility to secure reliable long-term power capacity. The approval allows NPCL to conduct a competitive bidding process and is designed to support rising electricity demand while increasing renewable energy availability for consumers.

The Commission has permitted NPCL to award the entire contracted capacity to a single bidder offering the lowest discovered tariff, known as L1, rather than dividing the capacity among multiple successful bidders. NPCL may alternatively use a bucket-filling mechanism within a tariff range extending up to L1 plus 2 per cent. The arrangement is intended to encourage tariff competition while avoiding fragmentation of the procurement.

To support power availability by the scheduled commencement date in December 2028, UPERC has approved amendments to the Request for Selection documents. Bidders must have received final connectivity approval from the Central Transmission Utility or State Transmission Utility when submitting bids, with the connectivity start date required to be no later than December 31, 2028. The revised eligibility provision is intended to reduce transmission and commissioning risks.

UPERC has also allowed NPCL to permit third-party arrangements for Energy Storage Systems (ESS), while retaining developers’ responsibility for contractual performance. Developers must meet minimum annual capacity utilisation factors, peak-hour supply commitments and other operating requirements. The Commission directed revisions to dispute resolution, billing due dates and rebate provisions to align the tender with central procurement frameworks. NPCL is now authorised to begin bidding and proceed towards a 25-year power purchase agreement.

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved Noida Power Company’s (NPCL) proposal to procure 300 MW of firm and dispatchable renewable energy on a round-the-clock basis. The long-term procurement is intended to address projected energy and peak-demand deficits in NPCL’s licensed area of Greater Noida from FY 2028-29. UPERC said the proposal aligns with earlier directions requiring the distribution utility to secure reliable long-term power capacity. The approval allows NPCL to conduct a competitive bidding process and is designed to support rising electricity demand while increasing renewable energy availability for consumers. The Commission has permitted NPCL to award the entire contracted capacity to a single bidder offering the lowest discovered tariff, known as L1, rather than dividing the capacity among multiple successful bidders. NPCL may alternatively use a bucket-filling mechanism within a tariff range extending up to L1 plus 2 per cent. The arrangement is intended to encourage tariff competition while avoiding fragmentation of the procurement. To support power availability by the scheduled commencement date in December 2028, UPERC has approved amendments to the Request for Selection documents. Bidders must have received final connectivity approval from the Central Transmission Utility or State Transmission Utility when submitting bids, with the connectivity start date required to be no later than December 31, 2028. The revised eligibility provision is intended to reduce transmission and commissioning risks. UPERC has also allowed NPCL to permit third-party arrangements for Energy Storage Systems (ESS), while retaining developers’ responsibility for contractual performance. Developers must meet minimum annual capacity utilisation factors, peak-hour supply commitments and other operating requirements. The Commission directed revisions to dispute resolution, billing due dates and rebate provisions to align the tender with central procurement frameworks. NPCL is now authorised to begin bidding and proceed towards a 25-year power purchase agreement.

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