UPERC adopts Rs 7.02/unit solar tariff for nine bidders for 12 years

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The Uttar Pradesh Electricity Regulatory Commission has adopted Rs 7.02 per unit as the solar tariff for the year 2015-16 for nine bidding companies who have already commissioned their projects for 12 years. (Image: Reuters)

The Uttar Pradesh Electricity Regulatory Commission has adopted Rs 7.02 per unit as the solar tariff for the year 2015-16 for nine bidding companies who have already commissioned their projects for 12 years. “The commission adopts the tariff of Rs 7.02 unit for the aforesaid nine bidders (who have been commissioned) for a period of 12 years, and for the next 13 years, the bidders shall be bound to supply power to UPPCL at the average power purchase cost (APPC) as agreed in the PPA subject to a ceiling of Rs 7.02 a unit,” commission chairman Suresh Agarwal said. For the remaining six bidders, whose projects have not been commissioned, and which the UPPCL wants to terminate, the commission said that since these companies had filed petitions against the pre-termination notices and the matter is under its consideration, it will pass necessary orders on them separately.

Of the nine companies who have commissioned their projects, Essel Infraprojects is set to gain as it was the lowest bidder at Rs 7.02/unit, while Adani Green Energy was among the highest at Rs 8.44. Sukhbir Agro and Shree Radhey Radhey, both quoted the highest tariff of Rs 8.60 a unit. Solar tariffs have come down to Rs 2.44 per unit in the latest reverse auction conducted by the Solar Energy Corporation of India.

Stating that the PPAs had been signed when equipment prices were high and thereafter price had fallen sharply, the UPPCL and UP New & Renewable Energy Development Agency (UPNEDA) had asked developers to revise tariffs to match the lowest bid of Rs 7.02 per unit. The move was also prompted by the fall in solar power tariffs in subsequent auctions conducted in the country. However, of the 15 developers who had signed contracts for 215 MW solar power auction in December 2015, six were still to commission their projects and out of the nine, who have already commissioned their projects, six refused to cut tariff.