UPPCL Set To Get Solar Power From Mau Solar Plant At Rs 2.25/unit

UPPCL Set to get solar power from Mau solar plant at Rs 2.25/unit Photograph: (Archive)

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a power purchase agreement (PPA) between Uttar Pradesh Power Corporation Ltd (UPPCL) and Nexgen Digital Infrastructures Pvt Ltd for the procurement of power from a 5 MW grid-connected solar project to be developed in Mau district at a tariff of Rs 2.24 per unit.

The approval comes after Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and UPPCL approached the Commission seeking adoption of the tariff discovered through a tariff-based competitive bidding process and approval of the PPA executed on September 11, 2025.

According to the order, the solar project will be established at Saraisadi village in Mau district and will supply power to UPPCL for a period of 25 years. The Commission adopted the discovered tariff under Section 63 of the Electricity Act, 2003.

The procurement process witnessed multiple rounds of bidding after initial tenders failed to attract adequate participation. UPNEDA had issued tenders for the project on several occasions between 2023 and 2025, but most bidding rounds received either no bids or insufficient participation, forcing the agency to repeatedly reissue the request for selection (RfS).

The final bidding round was initiated in February

Two developers—Nexgen Digital Infrastructures Pvt Ltd and GP Eco Solutions India Ltd—participated in the e-reverse auction conducted on May 5,

Nexgen emerged as the successful bidder after quoting a final tariff of Rs 2.24 per kWh, marginally lower than GP Eco Solutions' Rs 2.25 per kWh.

Following the auction, UPNEDA issued a Letter of Award (LoA) to Nexgen on July 3, 2025, and the developer subsequently furnished a performance bank guarantee of Rs 1 crore as required under the bid conditions. The PPA was signed between UPPCL and the company on September 11, 2025.

During the proceedings, UPERC also examined delays in the bidding process and sought clarification from UPNEDA and UPPCL regarding multiple tender cancellations and compliance with bidding guidelines. The petitioners submitted that repeated tender invitations became necessary because of poor market response and low bidder participation.

After reviewing the bid evaluation process, auction records and conformity certificates issued by the Bid Evaluation Committee, the Commission concluded that the procurement process had been conducted in accordance with the approved bidding documents and the Ministry of Power's competitive bidding guidelines.

"The Commission finds that bidding process was conducted in compliance with the approved bidding documents," UPERC said while approving the tariff and the PPA.

With the order, UPPCL has received regulatory approval to procure power from the 5 MW solar project at the discovered tariff of Rs 2.24 per unit for the entire 25-year tenure of the agreement.