In accordance with its renewable power obligation to progressively increase the supply of renewable energy to consumers in the state, reaching 21,500 MW by 2031-32, UP Power Corporation (UPPCL) has decided to procure 450 MW of wind energy from the Solar Energy Corporation of India (SECI) on a long-term basis.

The commission announced in its order on May 24 that it approved the power procurement of 450 MW wind power at the specified tariff, along with a trading margin of Rs. 0.07/kWh in accordance with CERC Trading License Regulations.

Under the agreement, UPPCL will purchase wind power at Rs 2.69 per unit from ReNew Naveen Urja, Green Infra Wind Energy, and Anupavan Renewable, and at Rs 2.70 per unit from Adani Renewable Energy.

It should be noted that the Union Ministry of Power (MoP) has raised the renewable power obligation (RPO) for discoms from 15% in 2023-24 to 29.91% in 2024-25. This implies that renewable power must constitute 29.91% of the total power that UPPCL will provide to consumers.

The ministry, through its notification dated February 1, 2024, also mentioned that an additional penalty of Rs 3.72 per unit will be imposed for any shortfall in meeting the renewable energy consumption standards.

The RPO estimates by UPPCL, as stated by UPERC in its order, indicate a significant deficiency in wind and other RPO categories such as solar and hydro.

According to its plan, UPPCL must secure 21,500 MW of renewable power by 2031-32 to fulfill its RPO obligations. This comprises 8,500 MW of solar power, and 6,500 MW each of wind and hydro power.