Mumbai, June 26 -- The Uttar Pradesh Electricity Regulatory Commission has granted regulatory relaxation for a 20 megawatt (MW) floating solar photovoltaic (PV) plant at Chilwa Tal in Gorakhpur. The decision followed a joint petition by the U.P. New and Renewable Energy Development Agency (UPNEDA) and the Uttar Pradesh Power Corporation Limited (UPPCL) seeking exemption from competitive bidding to procure power from Coal India Limited on a cost?plus basis. The commission applied its power to relax under the UPERC CRE Regulations, 2024 and the Modalities of Tariff Determination Regulations, 2023.
UPERC said the project aligns with the state Solar Energy Policy?2022, which targets a 10 per cent reduction in conventional energy through renewables within five years and aims to develop Gorakhpur as a model Solar City. The commission weighed public interest, legitimacy and alternative options before allowing the exemption. It also noted that much of the land and water needed is being provided free or on favourable terms by state agencies, reducing project costs.
Coal India Limited was nominated by the state to execute the project and the plant is expected to generate around 38.56 mn units annually, representing about 3.24 per cent of Gorakhpur's projected demand in FY 2026?27. UPERC observed that securing an 80?acre water body within city limits posed practical challenges and that attracting private developers through bidding would be difficult.
Coal India indicated a tentative tariff of about Rs 3.50 per kWh and said it was working to reduce financing costs to lower the final tariff. UPERC concluded that tariff determination under Section 62 of the Electricity Act, 2003 was the most appropriate route. The commission said the final tariff will be decided by the Central Electricity Regulatory Commission (CERC), after which UPPCL may sign a power purchase agreement with Coal India and seek UPERC approval.
Published by HT Digital Content Services with permission from Construction World.