UPERC Approves 100 MW Renewable PPA between NPCL And SJVNL

New Delhi: Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the power sale agreement (PSA) for Noida Power Company (NPCL) to procure from intermediary procurer SJVN 100 MW firm and dispatchable power from ISTS-connected renewable energy projects with energy storage systems developed by Tata Power Renewable Energy.

Noida Power Company Limited (NPCL) has submitted a petition for the approval of a power sale agreement (PSA) entered into with SJVN Limited (SJVNL) In Uttar Pradesh on March 15, 2024.

The agreement concerns the procurement of 100 MW of firm and dispatchable renewable power from renewable energy projects connected to the Inter-State Transmission System (ISTS), combined with an Energy Storage System. This agreement was established through a tariff-based competitive bidding process and is planned to last for 25 years.

The petition also seeks approval for the PSA with SJVNL, which would help fulfill NPCL’s rising power requirements. The power purchase agreement is critical for ensuring a steady supply of renewable energy over the long term.

In August 2024, the Central Electricity Regulatory Commission (CERC) issued an order approving a tariff of ?4.38 per kilowatt-hour (kWh) for Tata Power Renewable Energy Limited (TPREL) for a total capacity of 460 MW, of which 100 MW will be supplied to NPCL. This decision further supports NPCL’s request for the approval of the PSA with SJVNL.

Regarding this, the commission approved NPCL’s procurement of 100 MW of renewable energy at the tariff of ?4.38 per kWh, along with a trading margin of ?0.07 per kWh.

However, the commission also noted that if SJVNL fails to provide a secure payment mechanism such as an escrow arrangement or an irrevocable letter of credit to the renewable energy generator, the trading margin would be reduced to ?0.02 per kWh under CERC regulations.

The commission also approved the PSA between NPCL and SJVNL dated March 15, 2024. Furthermore, the commission advised NPCL to consider these observations when entering into future power procurement agreements to safeguard consumer interests.