Noida Power Company Limited (NPCL) has received approval from the Uttar Pradesh Electricity Regulatory Commission (UPERC) to procure 300 MW of Firm and Dispatchable Renewable Energy Round-the-Clock (RE-RTC) power through a long-term competitive bidding process. The approval aims to address the projected energy and peak demand deficits in NPCL’s licensed area of Greater Noida from the financial year 2028-29.
The Commission reviewed NPCL’s petition and observed that the proposed procurement aligns with earlier regulatory directions requiring the distribution utility to secure reliable long-term power capacity. The initiative is expected to support the growing electricity demand in the region while increasing the availability of renewable energy to meet consumers’ requirements.
As part of the approval, UPERC permitted NPCL to deviate from standard bidding guidelines regarding the allocation of the contracted capacity. Instead of distributing the 300 MW capacity among multiple successful bidders, the entire capacity can be awarded to a single bidder at the lowest discovered tariff, known as L1. Alternatively, NPCL can use a bucket-filling mechanism within a tariff range of up to L1 plus 2%.
The approved arrangement is intended to encourage competitive tariff discovery while avoiding the fragmentation of capacity into smaller portions. It will also allow NPCL to evaluate bids under the specified framework and select the most competitive procurement option.
To ensure timely power availability by the scheduled commencement date in December 2028, UPERC also approved amendments to the Request for Selection (RfS) documents. Under the revised eligibility requirements, bidders must have received final connectivity approval from the Central Transmission Utility or State Transmission Utility when submitting their bids. The connectivity start date must be on or before December 31, 2028.
The revised provision is intended to ensure that selected developers have the necessary transmission connectivity arrangements to deliver power within the required timeline. It also seeks to reduce implementation risks and support the timely commissioning of the contracted renewable energy capacity.
UPERC has additionally allowed NPCL to permit third-party arrangements for Energy Storage Systems (ESS). This provision gives project developers greater flexibility in arranging storage infrastructure while retaining responsibility for meeting contractual performance requirements. Developers will remain accountable for minimum annual capacity utilisation factors, peak-hour power supply commitments and other prescribed operational standards.
During its review, the Commission examined several technical and financial provisions included in the proposed procurement framework. It directed specific revisions to dispute resolution clauses, billing due dates and rebate structures to maintain consistency with the frameworks followed by central procurement agencies.
With the regulatory approvals in place, NPCL is authorised to initiate the competitive bidding process and proceed towards executing a power purchase agreement for a tenure of 25 years.
The proposed procurement is expected to strengthen long-term power supply planning in Greater Noida and support the integration of renewable energy into the distribution portfolio. By combining round-the-clock supply requirements with storage flexibility and competitive tariff discovery, the initiative aims to improve supply reliability while supporting the region’s transition towards a more sustainable electricity mix.
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