Uttar Pradesh Power Corporation Limited (UPPCL) and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) have jointly filed a petition under Section 86 of the Electricity Act, 2003 before the power regulator for the development of Ayodhya as a solar city.
The petition before the power regulator UP Electricity Regulatory Commission (UPERC) aims to seek approval for the procurement of power from a proposed 40 megawatt solar photovoltaic (PV) project in Ayodhya.
The backdrop of this petition lies in the UP government’s decision to transform Ayodhya into a solar city. UPPCL and NTPC Green Energy Limited have floated a joint venture company for setting up a 40 MW solar power project. NTPC Green Energy Limited has already initiated significant renewable energy projects in the state, including a 225 MW ground-mounted utility-scale project and a 20 MW floating solar power project.
The petition specifically requests the relaxation of provisions outlined in the schedule of the UPERC CRE Regulations 2019, urging the UPERC to permit UPPCL to execute a power purchase agreement (PPA) with NTPC Green Energy Limited. This relaxation is sought to facilitate the procurement of power on a cost-plus basis from the 40 MW solar PV project in Ayodhya.
Additionally, the petition seeks permission to submit the PPA for approval after the tariff is determined by the Central Electricity Regulatory Commission (CERC).
During the Global Investors Summit-2023, the company signed a memorandum of understanding (MoU) for a substantial investment of Rs 10,000 crore.
The energy generated from the proposed 40 MW project in Ayodhya is earmarked for purchase by UPPCL, with the tariff determined by CERC on a cost-plus basis over 25 years.
The petition highlights the strategic importance of this project in contributing to the government’s vision of reducing conventional energy demand in Ayodhya by 10 per cent over the next five years, aligning with the Solar Policy 2022.
A key aspect of the petition is the allocation of 165.10 acres of land along the banks of the river Saryu by the UP government. Due to the topography of the land, the petition emphasises potential challenges in the competitive bidding process, estimating a four-month delay in securing bids. To expedite the development of Ayodhya as a solar city, the proposal suggests awarding the 40 MW project to NTPC Green Energy Limited on a cost-plus basis.
The petition for regulatory relaxation reflects the ambitious plans of the Uttar Pradesh government to leverage solar energy for the development of Ayodhya. The outcome of this regulatory process will play a crucial role in shaping the energy landscape of the temple town and contribute to the broader vision of a sustainable and renewable energy future for Uttar Pradesh.