Uttar Pradesh announces Deviation Settlement Mechanism Regulations, 2018

Uttar Pradesh Electricity Regulatory Commission (UPERC) recently announced the (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2018

The key points of the regulations are as below:

  • The regulations are applicable to all solar (excluding rooftop solar covered under UPERC RSPV regulations) and wind energy plants in Uttar Pradesh connected to the intra-state transmission system and having an installed capacity of 5 MW & above.
  • The solar or wind generation plants with an installed capacity of 5 MW or more, using the power generated for captive consumption will also be covered under these regulations.
  • Each pooling station having a minimum combined installed capacity of 5 MW will have one QCA, However, in case a particular solar or wind generator having a capacity of 50 MW or more, then such generators will act as a QCA provided that such generator is connected alone to a pooling station.
  • Wind and solar generators under these regulations will be required to provide metering with a provision for recording and storing all the load survey and billing parameters for every 15-mn time block as specific in CEA regulations governing metering.
  • A penalty will be imposed in case of failure of generator/QCA to provide data as directed by SLDC or error in the data provided as below:

  • In case of failure of the generators/QCA comply with the above timelines, a penalty of INR 25,000/- per day will be levied.

UPERC announces draft rooftop photo voltaic solar regulations 2019

Uttar Pradesh Electricity Regulatory Commission (UPERC) has recently announced the draft regulation for Rooftop Solar Photo Voltaic 2019. The draft regulations once notified by the Gazette will supersede “UPERC (Rooftop Solar PV Grid Interactive Systems Gross / Net Metering) Regulations, 2015.” The key highlights from the regulations are as below:

  • The maximum peak capacity of the rooftop solar system can’t exceed 100% of the sanctioned load/connected load/ contract load of the consumer.
  • The capacity of the grid-connected rooftop solar PV shall not be less than 1kWp and not more than 2MWp.
  • Eligible consumers can install the system under either gross-metering or net-metering arrangement.
  • For third-party owners entering into a commercial agreement for the rooftop in the premises of the consumers will have to go via a gross-metering method with the DISCOM.
  • The third-party owners entering into commercial or lease agreement for the rooftop in the premises of a group of consumers will have to take the net-metering arrangement with the DISCOM.
  • Any eligible consumer or third-party owner availing gross-metering arrangement will not be allowed to apply for net-metering within the same premise.
  • In order to provide flexibility to rooftop solar power consumer, a provision of mutual sale & purchase of electricity through a peer-to-peer transaction with proper accounting & billing mechanism using blockchain technology to be introduced.
  • Any consumer claiming Accelerated Depreciation benefits on the rooftop solar projects will only be eligible to avail net-metering arrangement.

Apart from the above points, the regulation talks about energy accounting & settlement, meter arrangement, application procedure, and registration processes. The regulation also has attached to it various formats of application forms for the consumers.


UPERC approves UPNEDA’s petition for fixing the ceiling tariff for 500 MW solar projects

UP New and Renewable Energy Development Agency (UPNEDA) and UP Power Corporation Ltd. (UPPCL) had filed a petition seeking approval for RFP & PPA for procurement of 500 MW Grid-connected solar power through tariff based competitive bidding discovering ceiling tariff-based competitive bidding discovering a ceiling tariff of INR 3.25/unit. UPERC has recently approved the petition and suggested certain changes in the PPA but largely accepting the petition as it is. The key points of the approved petition include:

  • Commercial operation date will be 21 months for projects of capacity less than 250 MW.
  • Commercial operation date will be 24 months for projects of a capacity of more than 250 MW.
  • Upper tariff ceiling will be ₹3.25/kWh if safeguard duty is included.
  • If safeguard duty is not included, upper tariff ceiling will be ₹3.10/kWh.
  • Financial closure must be attained within 365 days of PPA signing.

The changes suggested by the commission are:

  • The document talks about providing 210 days time for the submission of technical Feasibility of connectivity of the plant to the STU substation. The commission suggested that in case the STU is not in a position to provide connectivity to the proposed solar plant due to technical issues, then the PPA should be considered unfruitful without any financial liability on either party.
  • The commission is of the opinion that since the power is always procured in kWh or Million Units (MU) and not in MWh. It should be specified in the PPA that the power will be procured in kWh or MU but the bidding will be done in MWh.



After the UPERC cancelled PPAs with Bajaj Power owned units (as reported by TOI), BESCOM (Karnataka based DISCOM) cancelled its PPA signed before 31st March of a 75.6 MW wind power plant. The state’s energy department had already issued a letter to the DISCOMs to not sign anymore PPAs  as the state has sufficient wind projects to fulfill its RPO compliance. More such cancellations from the DISCOMs are expected. The industries which are more affected by this cancellation are Gamesha, Suzlon, Inox Wind, Sembcorp Green Infra and Mytrah.


This is going to be a very discouraging development for the wind industry since a number of PPAs were signed at a higher price which is no longer being accepted by the DISCOMs. A similar development was also covered on our blog.


The article can be accessed here.


UPERC Final Solar Rooftop Regulation, 2015

The Uttar Pradesh Electricity Regulatory Commission (UPERC) on 20th March has notified the finalized version of the regulation for solar grid interactive systems. The regulation will allow the consumer to install solar rooftop systems under net metering or gross metering arrangements, third party systems has also been allowed.

Key Points of the regulation

  • The system to be installed by any consumer should be of minimum 1 kwp capacity.
  • The max. peak capacity of the system being installed by a consumer shall not be more than 100% contracted demand of the consumer.
  • Consumers claiming  accelerated depreciation benefits on the rooftop solar PV system will only be allowed to avail net metering arrangement.
  • The third party owner will only be allowed to install such systems under the gross metering arrangement.
  • Under gross metering scheme the consumer must inject entire power generate into the grid, while Net metering allows the consumer to consume the power generated and feed the surplus power generated into the grid.
  • For the gross metering scheme the system owner will be provided preferential tariff for the power injected into the grid, while in case of net metering scheme the consumer will be provided with Rs. 0.50 per unit for the power injected into the grid after settlement.
  • The solar rooftop systems installed by any consumer or third party owner will be exempted from payment of wheeling and cross subsidy surcharge.

Solar Renewable Purchase Obligation –

The quantum electricity generated by consumer will be considered towards the RPO of the distribution licensee if the consumer is not an obligated entity, otherwise will be considered towards RPO of consumer or third party system owner.

Eligibility for Renewable Energy Certificate Mechanism (REC) –

The eligibility for Renewable Energy Certificate and issuance of such REC will be as per the eligibility criteria specified under CERC REC Regulation 2010.

The regulation can be accessed here.

Our previous blog on UPERC Draft Net Metering Regulation can be read here.

UPERC Notifies Draft Solar Rooftop Regulation

Uttar Pradesh Electricity Regulatory Commission (UPERC) in its latest notification has presented draft for  solar rooftop and net metering regulation. The regulation has been named as UPERC (Rooftop Solar PV Grid Interactive System Gross / Net Metering) Regulations, 2015. The regulation come will in force from the date of notification in the official gazette.

The regulation will apply to the distribution licensee and consumers of the licensee. The eligible consumer can install rooftop solar systems under gross metering or net metering scheme. The consumers claiming accelerated depreciation (AD) benefits on rooftop solar systems will only be eligible for net metering scheme and not gross metering.

The maximum peak capacity of the grid connected rooftop solar system to be installed by any eligible consumer shall not exceed 90% of the contract demand of the consumer.

Basic Difference Between Gross Metering and Net Metering schemes: If the consumer installs solar rooftop under the gross net metering scheme he will have to inject entire power generated into the grid, while in other case if the consumer opts for Net Metering scheme he will be entitles to use the power generated at his premises and will be allowed to inject the surplus power into the grid.

The more details about the draft regulations is in the table below:

The commission has invited comments and suggestions through a public notice, by 1st March 2015.

The Draft Can be accessed here.

UPERC Finalizes RE Tariff

The Uttar Pradesh Electricity Regulatory Commission (UPERC) in its order dated 22nd Jan 2015, has finalized y the regulation for Captive & Renewable Energy Generating Plants. The UPERC has also finalized the tariff’s for different RE sources of generation under this regulation.

The Commission earlier in November last year released a draft seeking comment and suggestion from stake holders. The details of the tariffs finalized are given in the table below:

For Solar Energy the commission will take the capital cost into consideration and will give the tariff every year based on the capital cost variations.

The UPERC Order is available here.

Our Previous blog post on the UP Net Metering can be read here.

UPERC Proposes RE Tariff

The Uttar Pradesh Electricity Regulatory Commission (UPERC) in its latest notification on 5th November 2014 has proposed draft for Renewable Energy Tariff. The Commission has invited comments and suggestions by 21st November 2014.

The details of the tariffs proposed are as below:

Uttar Pradesh has been in seeing very slow growth in RE generation. In case of solar, the tariff proposed by commission, is close to 15 % higher than the tariff finalized by CERC for FY 14-15. It can inferred that the higher tariff has been proposed to encourage the solar generation in the state.

The proposed draft can be accessed here.

Our Previous blog post on MNRE draft guidelines can be read here.

Contributed by Dheeraj Babariya

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