UPPCL Awards 2 GW Solar Projects to NTPC REL, Adani, ReNew, and Fastnote

Uttar Pradesh Power Corporation Ltd.'s  (UPPCL) 2 GW solar auction saw NTPC Renewable Energy Ltd. (NTPC REL), ReNew Solar Power, Fastnote Biofuels (Hindustan Power), and Adani Renewable Energy Holding Twelve emerging as successful bidders.

NTPC REL secured the largest allocation, winning 1,000 MW at a tariff of INR 2.56 per kWh. ReNew Solar Power was awarded 300 MW at the same tariff. Fastnote Biofuels secured 300 MW at INR 2.57/kWh, while Adani Renewable Energy Holding Twelve won 400 MW under the bucket-filling method at INR 2.57/kWh.

NTPC REL plans to develop its 1,000 MW project within Uttar Pradesh. ReNew Solar Power will distribute its 300 MW capacity across states including Rajasthan, Telangana, Maharashtra, Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh. Fastnote Biofuels will establish its 300 MW project in Madhya Pradesh, while Adani Renewable Energy Holding Twelve will set up its 400 MW project in Rajasthan.

The tender, issued in February 2024, allowed bidders to leverage financial incentives like accelerated depreciation, preferential customs and excise duties, and tax benefits. Bidders with unutilised capacity in existing or under-construction solar or storage projects were eligible, with an extended power purchase agreement (PPA) period based on the time gap between actual and scheduled power supply commencement. However, those with existing PPAs with UPPCL were restricted from terminating them to participate in this auction. No direct central financial assistance was provided for these projects.

The bidders were required to submit a single bid with a contracted capacity between 50 MW and 1,000 MW. Developers had the flexibility to choose project locations either as a single unit or in multiple blocks within the same state.