The Andhra Pradesh Electricity Regulatory Commission (APERC) has quashed a Tata Power Renewable Energy (TPREL) petition seeking compensation from Andhra Pradesh state electricity authorities for deemed generation losses, claiming that the curtailment was due to insufficient transmission capacity.

However, the Commission found no breach of the Power Purchase Agreement (PPA) by the respondents and concluded that the curtailment was justified under grid security considerations.

Background

Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power Company, operates a 100 MW wind power plant in Anantapur District, Andhra Pradesh.

The New and Renewable Energy Department Corporation of Andhra Pradesh approved the project, which was commissioned in two phases between December 2016 and March 2017.

A PPA was executed with the Southern Power Distribution Company of Andhra Pradesh (APSPDCL), ensuring a tariff of ₹4.84 (~$0.05) per unit for 25 years.

TPREL claimed it faced significant challenges in evacuating power due to the limited capacity of the Uravakonda GSS.

The Andhra Pradesh State Load Despatch Centre (APSLDC) and the Transmission Corporation of Andhra Pradesh (APTRANSCO) issued curtailment instructions, restricting the evacuation of power to as low as 67% of the installed capacity at times.

This curtailment was attributed to the inadequate transformation capacity at the grid substation and other technical constraints.

Commission’s Analysis

The Commission analyzed whether the respondents, APSLDC and APTRANSCO, failed in their statutory duties to provide adequate transmission capacity for the evacuation of power from TPREL’s wind power project.

TPREL argued that the curtailment violated the terms of the PPA and the statutory obligations under the Electricity Act, 2003. The company sought compensation for the deemed generation losses amounting to ₹683.9 million (~$8.1 million).

However, APSLDC and APTRANSCO contended that the PPA did not contemplate compensation for such curtailments, and the curtailment was necessary for grid security.

The respondents maintained that the curtailment complied with the Indian Electricity Grid Code and the Andhra Pradesh Code of Technical Interface . They argued that the curtailments were necessary to maintain grid stability and were not solely due to infrastructural inadequacies.

The Commission concluded that while there were genuine transmission constraints, the respondents had taken steps to address these issues, including upgrading the infrastructure and exploring alternative transmission routes.

Recently, APERC approved a tripartite Power Supply Agreement allowing the Andhra Pradesh Green Energy Corporation, now known as AP Rural Agriculture Power Supply Company, to draw 7 GW of solar power from the Solar Energy Corporation of India.

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