The Uttar Pradesh Electricity Regulatory Commission (UPERC) has notified the Uttar Pradesh Electricity Regulatory Commission (Captive and Renewable Energy Generating Plants) Regulations, 2024, a comprehensive framework governing captive power generation, renewable energy projects, and cogeneration plants across the state.
The new regulations, issued under Section 181 of the Electricity Act, 2003, will remain effective from their notification date up to March 31, 2029, unless extended by the Commission. Tariff provisions outlined in Schedule I will apply from April 1, 2024, to March 31, 2029.
🔍 Key Highlights of the CRE Regulations, 2024
1. Applicability and Scope
The regulations apply to:
- Captive Generating Plants (CGPs) with capacity of 1 MW and above,
- Renewable Energy (RE) generating plants, including cogeneration-based projects.
This covers plants connected to the grid and those operating independently (off-grid).
2. Clean Development Mechanism (CDM) Proceeds Sharing
For projects commissioned after April 1, 2009, that earn revenue from carbon credits under the CDM:
- 100% of proceeds go to the developer in the first year.
- From the second year onward, the procurer’s share increases by 10% annually, up to a 50–50 share.
- Any future changes to carbon credit mechanisms will be subject to further UPERC orders.
3. Compliance Requirements for Generating Plants
All generating plants must comply with:
- CEA technical standards and safety codes.
- UPERC Grid Code (2007) and Connectivity Regulations (2010).
- Metering standards and coordination with State Load Despatch Centre (SLDC) for scheduling and despatch.
- Environmental and emission norms and submission of pollution clearance certificates.
The Commission may order technical or financial audits of plants through independent auditors or refer cases to the Central Electricity Authority (CEA).
4. Additional Obligations for Captive Generating Plants
CGPs must:
- Comply with the Electricity Rules, 2005 (Rule 3) on captive status verification.
- Follow the UPERC (Verification of Generating Plants and Captive Consumers) Regulations, 2022.
- Conduct annual energy audits under the Energy Conservation Act, 2001.
- Adhere to the Renewable Purchase Obligation (RPO) framework under UPERC’s 2010 regulations.
5. Tariff Framework (Schedule I)
- Tariffs for existing CGPs and RE plants (bagasse, biomass, MSW, and small hydro) are specified in Schedule I.
- New CGPs and RE projects will follow the UPERC (Modalities of Tariff Determination) Regulations, 2023.
- Rooftop solar projects will follow the UPERC (Rooftop Solar PV Grid Interactive System) Regulations, 2019.
- For new RE technologies or fuels, tariff will be the lower of:
- Weighted Average Power Purchase Cost (APPC), or
- Tariff agreed in the Power Purchase Agreement (PPA).
PLF norms:
- Biomass plants: 80% PLF
- Bagasse-based plants: 50% PLF
Capacity charges are recovered pro rata based on achieved PLF.
6. Approval of Power Purchase Agreements (PPAs)
- Distribution Licensees must seek Commission approval for PPAs within one month of signing.
- They must also submit annual energy procurement data (Annexure I) by June 30 each year.
7. Power Purchase by Generating Plants
- Generating plants may purchase power from the Distribution Licensee or via Open Access.
- Purchases from the Distribution Licensee will be billed under the HV-2 category, with demand charge relief:
- 50% for use up to 15 days/month,
- 100% for use beyond 15 days/month,
- Nil if no power is drawn.
8. Commercial Operation Declaration (COD) Procedures
For RE plants selling to licensees:
- COD/Part-COD declared by the developer per the approved PPA.
- Infirm power during trial run is payable at 50% of approved tariff after SLDC verification.
For solar developers selling to non-licensee consumers:
- Must notify UPSLDC/STU at least 7 days before trial runs.
- Minimum 10% capacity (at least 5 MW) must be tested per phase.
- Up to four attempts allowed for successful trial runs.
9. Open Access and Exemptions
- Captive plants can use State or Inter-State systems by paying transmission and wheeling charges.
- No cross-subsidy surcharge applies for captive self-use, but it applies for third-party or non-captive sales.
- Solar projects benefit from incentives under the Uttar Pradesh Solar Energy Policy, 2022, including:
- 100% exemption from intrastate wheeling/transmission charges for sale to Discoms.
- 50% exemption for captive or third-party sales.
10. Banking of Energy
- Captive and cogeneration plants may bank surplus energy for future use during the control period.
- Plants must install CEA-approved energy meters with automatic remote meter reading (AMR) and communication facilities.
11. Repeal and Savings
These regulations replace the 2019 CRE Regulations and their amendments.
However, any actions taken under the previous regulations remain valid unless specifically overruled.
⚙️ Overall Objective
The 2024 Regulations aim to:
- Streamline regulatory clarity for captive and renewable energy producers,
- Promote clean energy adoption in line with India’s energy transition goals,
- Encourage investment stability through fixed tariff applicability up to FY 2028–29, and
- Strengthen compliance, grid discipline, and sustainability in Uttar Pradesh’s power sector.