UPNEDA Revises Norms in 150 MW Solar RFS Under PM KUSUM

UPNEDA Lowers Minimum CUF Among Other Revisions to Encourage Bids in 150 MW Tender

UPNEDA (Uttar Pradesh New Energy Development Agency) had issued a tender for procurement of power through tariff based competitive bidding process from grid connected solar power plants connected to selected segregated agriculture feeder of distribution substation cumulative capacity of 150 MW for sale of power to UPPCL at various locations in Uttar Pradesh through RESCO under feeder level solarization of PM KUSUM component C-2 scheme.

The Component C seeks solarization of grid connected agriculture pump and looks to provide day-time solar power for irrigation through agriculture feeders which have been solarized under the scheme.  As per UP Solar Energy Policy 2022, UPPCL through its discoms will purchase the solar power generated under PM KUSUM Scheme Component C.

The said 150 MW tender, however stood cancelled after it was received only one bid in April, 2023. Now, to enhance participation, UPNEDA has released a revised RFS document and PPA terms following the stakeholder meeting. The revised terms and conditions have been approved by UPERC (Uttar Pradesh Electricity Regulatory Commission) The revised tender was floated in July, 2023.

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Further, the CFA (Central Financial Assistance) has been identified as INR 1.05 Cr per MW, which is 30% of estimated cost of installation of solar power project at INR 3.5 Cr per MW.

Under the revisions, the land lease agreement has to be submitted within a period of six months. and the certified copy of the land ownership documents shall be submitted within 6 months from the LoA. These timelines had not been stipulated earlier.

Earlier, regarding the maximum CUF – a procurer in any contract year shall not be obligated to purchase additional energy above 21% CUF on annual basis during the PPA period from the solar power generator at the PPA tariff of that year. But the excess energy generated by the SPG above 21% CUF may be procured by procurer at 75% of the PPA tariff. This clause has now been deleted. This is as per the guidelines issued in 2020, where there is no cap of capacity of solar power plant for feeder level solarization. There is no mandate on capping of CUF hence the clause on maximum CUF was removed.

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As opposed to the condition laid down in the older RFS, the solar power generator was to achieve minimum 15% CUF on annual basis. This minimum stipulation has now been revised to 19%. This criteria of minimum CUF has been set taking into consideration criteria set by other states such as Rajasthan, Gujarat, Maharashtra in their RFS.

Earlier, the RFS document had laid out the criteria for technical and financial qualifications, However, the revised document has simplified or even removed the criteria altogether to allow greater participation.

Components A and C have yet to see success under PM KUSUM.