How a 5 MW pilot project in Unnao could open door for concentrated solar power in India
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a 5 MW Concentrated Solar Power (CSP) pilot project proposed by Cosmicwave Technology & Research Pvt. Ltd. in Unnao at a fixed tariff of Rs 4.73 per unit for a 25-year Power Purchase Agreement (PPA). The order, issued on June 8, 2026, relaxes the requirement for competitive bidding under the UPERC (Captive and Renewable Energy Generating Plants) Regulations, 2024 and the UPERC (Modalities of Tariff Determination) Regulations, 2023.
The Commission directed Uttar Pradesh Power Corporation Limited (UPPCL) to execute a PPA with the developer, subject to approval under Section 86(1)(b) of the Electricity Act.
Project and regulatory relief
The 5 MW project will use CSP technology with thermal energy storage to supply up to 40 MWh of electricity during evening peak hours. Unlike solar photovoltaic (PV) projects, CSP plants use mirrors to concentrate sunlight and store thermal energy in molten salt, enabling electricity generation after sunset.
The project has an estimated capital cost of Rs 25 crore, or around Rs 5 crore per MW. According to the petitioner, heliostats will be sourced from Germany, Zinc-Bromine Flow Batteries from the United States, molten salt receivers from the United Arab Emirates, while the balance of plant components will be procured domestically.
Cosmicwave sought relaxation from the tariff provisions applicable to new technology pilot projects and the mandatory competitive bidding requirement, arguing that CSP technology differs significantly from solar PV in terms of technology, capital cost and market maturity. The petitioner stated that there are no operational CSP plants in Uttar Pradesh and, to its knowledge, none elsewhere in India under the current regulatory framework.
UPPCL had granted in-principle consent for the project on August 14, 2025, subject to Commission approval. The utility submitted that the proposed tariff of Rs 4.73 per unit was lower than the average evening peak market price of Rs 6.00-7.50 per unit during FY 2024-25 and estimated savings of about Rs 2 per unit.
Commission’s findings
UPERC held that CSP technology could not be treated on par with solar PV for tariff determination, despite both using solar energy as the primary resource. It observed that the Average Power Purchase Cost (APPC) applicable to solar power was not appropriate for CSP because of its different technology, higher capital costs and ability to provide firm and schedulable power through thermal energy storage.
The Commission also noted that the developer had agreed to maintain a fixed tariff of Rs 4.73 per unit throughout the 25-year PPA without any escalation, including for increases in molten salt prices, as confirmed through an affidavit dated May 25, 2026.
The order states that the project will help meet UPPCL’s peak demand by supplying electricity for up to eight hours daily and could support the integration of dispatchable renewable energy into the state’s power system.
The Commission observed that encouraging pilot projects of this nature could facilitate wider adoption of the technology if demonstrated successfully.
The featured photograph is for representation only.
