Uttarakhand Power Corporation Limited (UPCL) has adopted a forward-looking, data-driven approach to power procurement that is delivering significant cost savings and additional revenue for the state-run utility.
To optimise the purchase of electricity and better balance supply and demand, UPCL has increasingly relied on competitive pricing mechanisms available on power exchanges instead of traditional, costlier procurement routes. By tapping into both the Day-Ahead Market (DAM) and Real-Time Market (RTM), the utility has been able to secure lower-priced electricity for its consumers.
During the first nine months of the 2025–26 financial year (April–December), this diversified strategy helped UPCL save more than ₹160 crore on power purchase costs. At the same time, the company generated approximately ₹125 crore in additional revenue through the strategic sale of surplus Renewable Energy Certificates (RECs) on exchanges.
UPCL’s Managing Director, Anil Kumar, highlighted that the procurement division is using data analytics and weather forecasting to time purchases more effectively while maintaining a reliable power supply. This tactical use of market segments has enabled the power distributor to reduce dependency on expensive long-term contracts and optimise costs without compromising the state’s energy security.
The lower prices available on exchanges—both in DAM and RTM—have also helped UPCL adapt to fluctuating demand, especially during periods when hydro generation is limited. In December 2025, for example, UPCL shifted planned purchases from higher-cost procurement avenues to power exchange contracts, saving nearly ₹20 crore in a single month.
By combining competitive market participation with strategic REC trading, UPCL is creating a more resilient and cost-efficient power procurement framework to benefit consumers across Uttarakhand.
