en.Wedoany.com Reported - The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved Coal India Ltd (CIL) to develop and commission a 20 MW floating solar photovoltaic project at Chilwa Tal in Gorakhpur, granting special regulatory relaxations to allow Uttar Pradesh Power Corporation Ltd (UPPCL) to procure power from the project on a cost-plus basis rather than through competitive bidding.

In its latest directive, the Commission agreed to relax relevant provisions of the UPERC (Captive and Renewable Energy Generating Plants) Regulations, 2024 and the UPERC (Terms and Conditions for Determination of Tariff) Regulations, 2023, clearing the way for UPPCL to sign a Power Purchase Agreement (PPA) with Coal India. The final tariff for the project will be determined separately by the Central Electricity Regulatory Commission (CERC) under Section 79(1)(a) of the Electricity Act, 2003.

The project is part of the Uttar Pradesh government's overall plan to develop Gorakhpur as a designated "Solar City" under the Uttar Pradesh Solar Energy Policy, 2022. According to materials submitted to the Commission, the floating solar facility is expected to generate approximately 38.56 million units (MU) of electricity annually, contributing to the renewable energy targets set for the city.

Coal India currently operates about 197 MW of solar capacity across its subsidiaries and plans to achieve 3 GW of renewable energy capacity by FY2028 and 9.5 GW by FY2030. The Gorakhpur floating solar project is part of its emerging renewable energy portfolio beyond its core coal business.

During the proceedings, the Commission confirmed that the required land and water area of approximately 80.73 acres for the project has been secured among multiple stakeholders, including the Uttar Pradesh Tourism Department, Hindustan Urvarak & Rasayan Ltd (HURL), and Mahayogi Gorakhnath University. The Tourism Department has agreed to provide part of the identified land free of charge, while negotiations with other parties are ongoing.

The regulator considered that competitive bidding—the standard route for long-term power procurement—might not be a practical option given the project's unique location, challenges in land consolidation, and limited likelihood of attracting private sector participation. The Commission also noted that a previous 150 MW floating solar project at the Rihand reservoir, awarded through competitive bidding, had faced implementation hurdles.

During the hearing, Coal India indicated that the provisional tariff for the project could be around INR 3.50 per kWh, considering factors such as compliance with the Approved List of Models and Manufacturers (ALMM) requirements. In response, the Commission commented that the proposed tariff appeared higher than the current level of approximately INR 2.50-2.70 per kWh for ground-mounted solar. The company subsequently stated it would work on optimizing project costs and financing arrangements.

UPERC deemed the project to serve the broader public interest by supporting Uttar Pradesh's renewable energy transition, advancing the Solar City program, and demonstrating the feasibility of floating solar technology within the state. The Commission concluded that the regulatory relaxations sought by the petitioner met the criteria of legality, public interest, and lack of viable alternatives.

Under the directive, UPPCL can sign the PPA with Coal India once the tariff is approved by CERC. This marks a key step forward in deploying the first utility-scale floating solar project in Uttar Pradesh.

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