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The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved Uttar Pradesh Power Corporation Ltd's (UPPCL) proposal to procure 511 MW of hydropower on a long-term basis from the Khorlochhu Hydropower Project in Bhutan through Tata Power Trading Company Ltd (TPTCL).
The approval pertains to power procurement from the 600 MW Khorlochhu Hydro Power Project being developed in Bhutan by Tata Power Company in partnership with Druk Green Power Corporation. Under the arrangement, UPPCL will procure 511 MW of power, with an additional 10% overload provision, during the months of May to October each year.
According to the order, the power will be supplied from May 1, 2030, for a period of 30 years at a tariff of ₹6.75 per unit at the Indo-Bhutan delivery point. The commission also approved the draft Power Sale Agreement (PSA) to be executed between UPPCL and TPTCL.
UPPCL had said that the procurement would help meet its future power demand and comply with Hydro Power Obligation (HPO) requirements under Renewable Purchase Obligation (RPO) norms prescribed by the Ministry of Power. The utility cited projections indicating rising electricity demand in Uttar Pradesh and a need for additional renewable energy capacity to address potential supply deficits and statutory clean energy obligations.
The commission noted that hydro power sourced from projects outside India can be counted towards HPO compliance under the Ministry of Power's regulations. UPPCL also referred to an earlier UPERC order that directed the utility to reduce its backlog in meeting renewable purchase obligations through long-term procurement and other mechanisms.
The project is expected to provide about 1,748 million units of electricity annually during the six-month supply period from May to October. UPPCL had conveyed its in-principle consent for the procurement in December 2024, following discussions with TPTCL on the proposed tariff and supply terms.
The commission's order clears the way for UPPCL to enter into the long-term power purchase arrangement, subject to the terms approved in the PSA.
The approval pertains to power procurement from the 600 MW Khorlochhu Hydro Power Project being developed in Bhutan by Tata Power Company in partnership with Druk Green Power Corporation. Under the arrangement, UPPCL will procure 511 MW of power, with an additional 10% overload provision, during the months of May to October each year.
According to the order, the power will be supplied from May 1, 2030, for a period of 30 years at a tariff of ₹6.75 per unit at the Indo-Bhutan delivery point. The commission also approved the draft Power Sale Agreement (PSA) to be executed between UPPCL and TPTCL.
UPPCL had said that the procurement would help meet its future power demand and comply with Hydro Power Obligation (HPO) requirements under Renewable Purchase Obligation (RPO) norms prescribed by the Ministry of Power. The utility cited projections indicating rising electricity demand in Uttar Pradesh and a need for additional renewable energy capacity to address potential supply deficits and statutory clean energy obligations.
The commission noted that hydro power sourced from projects outside India can be counted towards HPO compliance under the Ministry of Power's regulations. UPPCL also referred to an earlier UPERC order that directed the utility to reduce its backlog in meeting renewable purchase obligations through long-term procurement and other mechanisms.
The project is expected to provide about 1,748 million units of electricity annually during the six-month supply period from May to October. UPPCL had conveyed its in-principle consent for the procurement in December 2024, following discussions with TPTCL on the proposed tariff and supply terms.
The commission's order clears the way for UPPCL to enter into the long-term power purchase arrangement, subject to the terms approved in the PSA.
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