0
By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.
Don’t have an account? Signup
Powered by :
Why UP’s Transmission Utility Doesn’t Want SAEL To Use Banked RE ‘Anytime’? Photograph: (AI)
A regulatory battle over renewable energy banking has unfolded before the Uttar Pradesh Electricity Regulatory Commission (UPERC), with the state’s power utility opposing SAEL Solar P6 Pvt Ltd’s request to use banked renewable energy without time restrictions for its upcoming 5 GW solar cell and 5 GW module manufacturing facility.
At the heart of the dispute is SAEL’s plea seeking exemptions from transmission, wheeling and banking charges, besides relaxation from Time-of-Day (ToD) restrictions governing the withdrawal of banked renewable energy generated from its proposed captive renewable power project. The company has argued that the reliefs are necessary to support its integrated solar manufacturing project being set up under the Centre’s Atmanirbhar Bharat initiative and Uttar Pradesh’s industrial promotion policy.
However, the Uttar Pradesh Power Transmission Corporation Ltd (UPPTCL) has strongly opposed the request, warning that permitting unrestricted withdrawal of banked renewable energy would fundamentally alter the role of the state’s transmission network.
In its submission before the Commission, UPPTCL argued that allowing SAEL to draw banked renewable power “at any time” would effectively convert the state transmission system into a “virtual energy storage facility.” The utility said such an arrangement would enable the company to commercially benefit from time-shifting renewable electricity while leaving the responsibility and costs of maintaining the transmission network with the State Transmission Utility (STU).
“The petitioner seeks to utilise the State Transmission Network as a virtual energy storage facility,” UPPTCL contended, adding that the proposal would allow the company to optimise power consumption without investing in storage infrastructure while relying on the grid to provide the flexibility.
The transmission utility also argued that exempting SAEL from transmission charges would create an unrecovered revenue gap, delaying cost recovery and eventually shifting the burden to other users of the state transmission system through future tariff revisions. It maintained that granting project-specific exemptions would be inconsistent with the regulatory framework governing the state’s transmission network.
Further, UPPTCL questioned SAEL’s request to establish a captive generating plant with an energy storage system while seeking relaxation from the 125% contracted demand ceiling prescribed in the Letter of Comfort issued by the state government. According to the utility, such relaxations have been sought without any technical assessment of their impact on the transmission network and could set an undesirable regulatory precedent.
UPPTCL also opposed invoking UPERC’s “power to relax” provisions for the project, arguing that the Commission’s discretionary powers are intended for exceptional circumstances and cannot be used to create a separate regulatory framework for an individual consumer.
SAEL, meanwhile, has maintained that the regulatory relaxations are required to facilitate power supply to its proposed 5 GW integrated photovoltaic cell fabrication and 5 GW module manufacturing facility in Uttar Pradesh, which it is developing under the state’s industrial promotion policies.
During the hearing, counsel for SAEL informed the Commission that UPPTCL’s written submissions were received only shortly before the hearing, leaving insufficient time to prepare a detailed rejoinder. Taking note of the submissions, UPERC allowed SAEL to file its rejoinder and listed the matter for further hearing on July 30, 2026.
The case is likely to be closely watched by renewable energy developers, as the Commission’s decision could shape how banking and time-of-use regulations are applied to captive renewable energy projects supplying electricity to large-scale manufacturing facilities in the state.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
Quick Links
© 2025 Saur Energy. All Rights Reserved.

source