Madhya Pradesh Commission Rejects DISCOM’s Petition to Review Old Wind Tariff Order

The Delhi Electricity Regulatory Commission (DERC) has approved a power sale agreement (PSA) signed between the Solar Energy Corporation of India (SECI) and Tata Power Delhi Distribution Limited (TPDDL) for procuring power from 50 MW of wind power projects. This procurement of power will be utilized for meeting TPDDL’s renewable purchase obligation.

TPDDL had petitioned the DERC to adopt a tariff of ₹2.45 (~$0.036)/kWh plus the trading margin of ₹0.07 (~$0.0010)/kWh for 50 MW wind power under Section 63 of the Electricity Act, 2003. Tata Power had requested for this tariff until the commissioning of total SECI-interstate transmission system (ISTS) wind power projects, after which the tariff would be ₹2.52 (~$0.037)/kWh (including trading margin) for the remaining duration of the power purchase agreement (PPA).

While examining the petition, the DERC observed that SECI was designated as the nodal agency responsible for conducting the bidding process and it has duly followed the guidelines issued by the Ministry of New and Renewable Energy (MNRE) to set up grid-connected wind power projects.

The DERC also pointed that as the generation and sale of power will take place in more than one state, the jurisdiction to determine the tariff lies with the Central Electricity Regulatory Commission (CERC) under section 79(1) (b) of the Electricity Act, 2003.

The commission stated that it could not determine the tariff for procuring solar power from SECI’s implemented the project. TPDDL must approach the CERC instead.

The DERC asked the parties to modify the terms and conditions of the PSA, asking the petitioner to include a clause that the buying entity will pay maximum possible fixed tariff as adopted by the concerned regulatory commission (CERC) plus a trading margin of ₹0.07 (~$0.0010)/kWh fixed up to the commissioning of the cumulative awarded capacity.

The Delhi Commission has also asked the petitioner to include a provision stating that the weighted average tariff as approved by the CERC plus a trading margin of ₹0.07 (~$0.0010)/kWh will be applicable. The tariff will be applicable after the commissioning of the cumulative awarded capacity for the balance term of the agreement for the energy supplied.

Moreover, the commission has ordered TPDDL to file a copy of the modified PSA within a month.

Recently, the DERC approved another PSA between TPDDL and SECI for the sale of power from 300 MW ISTS-connected solar photovoltaic projects. The DERC also issued a similar order approving the PSA between the two bodies with certain modifications but refused to approve the tariff for the procurement of 20 MW of solar power.

In January 2019, the DERC approved two PSAs between BSES Rajdhani Power Limited (BRPL) and PTC India Ltd for the procurement of 100 MW of wind power.