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The Noida Power Company Limited (NPCL) has filed a petition before the Uttar Pradesh Electricity Regulatory Commission (UPERC) under Section 63 of the Electricity Act, 2003, seeking the adoption of tariff and approval of agreements for the procurement of 50 MW Round-The-Clock (RTC) power. This procurement, aimed at ensuring reliable electricity supply, follows a transparent and competitive bidding process through the DEEP (Discovery of Efficient Electricity Price) Portal as per the revised Medium-Term Bidding Guidelines issued by the Ministry of Power (MoP) in January 2019. NPCL, which has existing power purchase agreements through both long-term and medium-term arrangements, has identified the need for additional power procurement based on the projected demand for FY 2025-26 to FY 2027-28. The company initially floated a tender for 100 MW RTC power for the period from April 1, 2025, to March 31, 2028. However, it was only able to secure 50 MW at a discovered tariff of Rs. 5.49/kWh at the Central Transmission Utility (CTU) periphery. Consequently, NPCL issued a second tender to procure the remaining 50 MW under the same terms. The new tender was advertised on November 21, 2024, in leading newspapers, and the final date for submission of bids was December 10, 2024. The bidding process was followed by an e-Reverse Auction conducted on December 17, 2024, through M/s PFC Consulting Limited, NPCL’s authorized representative. Four bidders participated in the auction: Adani Power Limited (APL), Dhariwal Infrastructure Limited (DIL), Maadurga Thermal Power Company Limited (MTPCL), Manikaran Power Limited (MPL) Following the auction, MPL emerged as a successful bidder with a tariff of Rs. 5.41/kWh for 25 MW. Subsequently, NPCL requested all bidders to match this rate, and DIL agreed to do so for an additional 25 MW, thereby fulfilling the total procurement requirement of 50 MW. The final agreed tariff for the procurement stands at Rs. 5.41/kWh. Under the terms of the agreement, transmission charges and losses up to the delivery point (CTU periphery) will be borne by the bidders. NPCL, as the procuring entity, will be responsible for General Network Access (GNA) charges, Temporary General Network Access (T-GNA) charges, and State Transmission Utility (STU) costs for power transmission from the delivery point to its own network. The fixed charges for the procured power have been computed based on 85% normative availability, as per the Standard Agreement for Procurement of Power (APP) guidelines. The charges are subject to annual escalation, aligning with the provisions of the bidding guidelines. During the hearing on March 27, 2023, NPCL representatives emphasized that the procurement was conducted competitively and transparently through the DEEP Portal. NPCL also addressed the Commission’s query regarding untied-up capacity, clarifying that the power from DIL’s Unit-2, which was previously selling power in the merchant market, will now be utilized under this agreement. The petition also highlighted that the tariff discovered is competitive compared to similar procurement processes by other distribution companies. Furthermore, securing RTC thermal power is expected to help NPCL meet peak demand requirements efficiently. The petition is currently under review by UPERC, and its approval is crucial for NPCL to formalize the agreements and ensure an uninterrupted power supply to its consumers. Given the increasing energy demands in Noida, securing RTC power at competitive rates is a strategic move that aligns with NPCL’s commitment to reliability and affordability in power distribution. The regulatory decision on this petition will have broader implications for power procurement strategies in Uttar Pradesh, setting a precedent for future competitive bidding and tariff adoption processes in the state’s electricity sector. |
