Uttarakhand's regulator has cleared the ground for the state to shop for 1,320 MW of new coal power on 25-year contracts
In Petition No. 39 of 2026, the Uttarakhand Electricity Regulatory Commission has dealt with Uttarakhand Power Corporation's application under Section 86(1)(b) for approval of a 1,320 MW round-the-clock, coal-based long-term procurement through tariff-based competitive bidding. The order records the sequence: UPCL's load forecasts and the CEA's resource-adequacy projections consistently show the state needing to fill a deficit that committed capacity will not meet in time.
An earlier tender approach did not yield plants that could be commissioned within the deficit window; and UPCL's board resolved to float a fresh tender for 1,320 MW long-term alongside 500 MW of medium-term procurement already approved separately.
Why it matters
The Commission has allowed the process to proceed on conditions with teeth. UPCL must place before the Commission the specific analysis on which its board sanctioned the 1,320 MW figure β an affidavit asserting approval is not enough β and must submit the draft power purchase agreement for prior regulatory approval after board clearance, with an explicit bar on executing it before that approval is granted.
The deviations UPCL sought in the standard bidding documents were considered alongside.
The details
For generators with untied coal capacity, a 1,320 MW, 25-year buyer just stepped into the market.
The order also records the Commission's insistence that the standard bidding documents be followed with only such deviations as it approves β keeping the eventual tariff adoption under Section 63 clean β and the 500 MW medium-term leg gives UPCL bridge supply while the 25-year plants are built.
Who is affected
UPCL faces the immediate task of submitting the board's specific analysis behind the 1,320 MW figure, plus the draft PPA, before any contract can be executed.
Generators with untied coal capacity now have a substantial new 25-year buyer in the market, a significant demand signal for the thermal generation sector.
What's next
Watch for UPCL's submission of the board analysis and draft PPA to the Commission, the next procedural steps before the tender can proceed.
The 500 MW medium-term procurement will give UPCL bridge supply while the 25-year plants are built, a timeline worth tracking alongside the main tender.
For more such stories, go to Click here
