In a significant order that underscores the growing importance of grid reliability, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has declined Noida Power Company Ltd’s (NPCL) proposal to procure 300 MW of hybrid renewable power, asking the utility instead to contract long-term firm power from coal-based plants or round-the-clock renewable energy sources. 

The order reflects a subtle shift in regulatory thinking—from merely adding renewable capacity to ensuring adequate round-the-clock electricity supply as the share of intermittent renewable energy rises. 

NPCL had sought approval to procure 300 MW of hybrid power, comprising 200 MW of wind and 100 MW of solar capacity. However, the Commission noted that because of the relatively low capacity utilisation factors of wind and solar projects, the proposed plant would deliver only about 136 MW of average power, leaving the utility dependent on other sources to meet its growing demand. 

The regulator also observed that NPCL’s renewable purchase obligation (RPO) would substantially exceed the targets prescribed by the Ministry of Power if the procurement went ahead, while the utility would still need significant quantities of conventional power to meet base-load demand. It pointed out that NPCL already depended heavily on short-term power purchases, including coal-based electricity, and had not contracted sufficient long-term capacity in line with the Central Electricity Authority’s resource adequacy guidelines. 

The regulator also observed that NPCL’s industrial load would increase with the operationalization of the Jewar International Airport. “Skewed dependence on intermittent RE is hardly conducive for a distribution business with so much industrial load in the consumer mix,” the regulator said. 

“The Commission appreciates and understands that RE power is environment friendly but the same cannot be done while jettisoning the cost of firm power sources such as hydro and coal-based power,” it said. 

Accordingly, UPERC directed NPCL to procure long-term firm power from coal-fired stations or renewable energy projects capable of supplying electricity round the clock. It said the utility could continue to procure renewable energy through medium-term arrangements as required. 

Published on June 26, 2026