URPC can provide an early-stage PPA tariff indication for utility-scale solar PV projects with minimal battery storage (primarily for ramp-rate control, load smoothing, and operational stability rather than long-duration shifting). This is intended for screening and stakeholder alignment; final pricing is confirmed only after feasibility, grid studies, and risk allocation are locked.
• Starting reference tariff: 6.5 US¢/kWh (PV-dominant, minimal BESS for load management, site/grid conditions “standard”)
• This reference is consistent with the fact that global utility-scale solar PV costs sit in the low single-digit cents/kWh range in many markets, while real-world PPA pricing can move higher depending on country risk, interconnection complexity, curtailment provisions, and financing terms.
• Target AER: 3–4% per annum, typically structured as CPI-linked indexation (or a defined escalation clause) to protect long-term bankability, especially where O&M, insurance, and replacement components are inflation-exposed.
• The escalation approach is applied transparently and should be aligned to the agreed commercial model (local currency vs USD tariff, pass-throughs, and index basis).
• Technology: utility-scale PV with minimal BESS (short-duration, operational smoothing)
• Performance assumption: standard PV performance degradation factor included in the energy model (industry often uses ~0.5%/year as a planning assumption, subject to module selection and warranty terms).
• Grid interface: standard protection, metering, and SCADA/telemetry requirements included at a baseline level
• Risk allocation: “balanced” EPC/O&M obligations with clear acceptance testing and warranty governance
Downward drivers
• Strong credit offtaker / robust security package
• Simple interconnection (short line, minimal substation works)
• Low curtailment risk and clear dispatch rules
• Efficient land access and streamlined permitting
Upward drivers
• Longer-duration BESS (energy shifting) or stringent availability guarantees
• Significant grid reinforcement/substation expansion
• High FX risk, weak payment security, or delayed approvals
• Elevated logistics/security costs and aggressive COD timelines
URPC converts screening pricing into a bankable tariff through:
1. Yield study and loss model finalisation
2. Grid study outcomes (connection scope, protection, SCADA)
3. EPC cost plan and schedule risk assessment
4. O&M scope definition and spares strategy
5. Financing structure (tenor, DSCR, insurance, hedging)
Output: a tariff band narrowed to a final offer, with a clear assumptions schedule and escalation clause.
