The Uttar Pradesh Electricity Regulatory Commission (UPERC) has released draft regulations for captive and renewable energy generating projects. Projects commissioned on or after April 1, 2009, will retain 100 per cent of clean development mechanism proceeds during the first year of commercial operation. From the second year, the procurer’s share will increase by ten per cent each subsequent year until it reaches fifty per cent. For generating projects with multiple units commissioned in different years, the electricity supply tariff will be determined using a weighted average based on contracted capacities. Biomass and bagasse-based projects must maintain a minimum 50 per cent plant load factor to recover full capacity charges. Additionally, for these projects, the tariff must equal the variable cost during the period between unit synchronisation and commercial operation. Distribution licensees are required to seek approval for power purchase agreements (PPAs) and provide data on energy received from different captive and renewable sources. Additionally, entities operating generating projects may meet their electricity needs via open access or local distribution licensees.
All generating projects are required to maintain grid discipline and will not be compensated for grid failures. The deviation settlement mechanism will apply to all, excluding small hydro projects and municipal solar waste plants. Developers must declare the commercial operation date (COD) as per approved PPAs and provide notice of at least seven days to the state load dispatch centre (SLDC) before conducting trial runs. These trial runs must demonstrate a minimum of 10 per cent project capacity, not less than 5 MW, for one 15-minute block on three days within a two-week period. Upon successful completion, developers may issue a COD or part-COD declaration. Captive projects seeking open access must pay wheeling, transmission, and related charges as determined by the appropriate commission. Distribution licensees will receive a 100 per cent exemption for power sales to them, 50 per cent exemption for captive use and third-party sales, and full exemption on intrastate transmission and cross-subsidy surcharge.
For energy banking, captive projects that comply with the 2022 verification regulations may bank energy for captive or own use during the control period, subject to a wheeling and banking agreement with distribution licensees. Banking ceilings are set at 49 per cent of energy injected per quarter for bagasse projects, and either 25 per cent of monthly injections or 30 per cent of total monthly electricity consumption for other renewables. In terms of power evacuation, projects must supply electricity to local distribution licensees through 11 KV lines for up to 3 MW, 33 KV for 3–20 MW, and 132 KV for capacities above 20 MW. Developers are responsible for constructing and maintaining evacuation systems and equipment, with operation and maintenance costs treated as pass-through for tariff determination. Energy meters must comply with Central Electricity Authority standards. The SLDC will oversee billing and accounting. In cases of direct sales to licensees without transmission network use, a joint meter reading is mandated. The commission reserves the right to modify these regulations at any time.
