The Andhra Pradesh Electricity Regulatory Commission (APERC) has given its go-ahead to execute an amendment in the existing Power Purchase Agreement (PPA) that was proposed by the Southern Power Distribution Company of Andhra Pradesh Ltd (APSPDCL).

However, the respondent in the case, Waaneep Solar, did not object to the relief granted to APSPDCL by the commission.

Earlier, APSPDCL had proposed to the commission to incorporate certain amendments in the PPA and implement the orders of APERC dated June 14, 2018. Under the proposed amendments, the new tariff was to be lowered to ₹3.74 (~$0.053)/ kWh from ₹5.76 (~$0.082)/ kWh , and the scheduled commercial operation date was slated to be August 2, 2018, same as the actual date of commissioning of the project.

Waaneep had entered PPA with APSPDCL at ₹5.76 (~$0.082)/kWh for a 25 MW solar power project with its scheduled commercial operation date fixed on March 31, 2016.

The commission noted that Waaneep Solar had the advantage of having the PPA between the parties restored to life, but the delay in commissioning of the project led to the APERC accepting the changes in the original PPA .

Recently, APERC set ₹3 (~$0.042)/kWh as the tariff for three grid-connected solar photovoltaic (PV) projects in the state, aggregating 82 MW. It was examining three petitions filed by APSPDCL which had requested the APERC to finalize a tariff for these three projects that were commissioned in 2017.

Other state commissions have also penalised the developers for a delay in project commissioning.

 Last month, the Karnataka Electricity Regulatory Commission (KERC) asked a project developer to pay the damages for delay in commissioning.

In October 2018,  in a similar case, KERC penalized Marakka Solar Power Project LL.P for a delay in commissioning a 1 MW project.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer