Delhi Electricity Regulatory Commission (DERC) has allowed Tata Power Renewable Energy (TPREL) an extension for the Scheduled Commercial Operation Date (SCOD) for its 510 MW wind-solar hybrid power project.

TPREL filed the petition seeking relief due to delays in operationalizing the Inter-State Transmission System (ISTS) substations at Koppal-II and Gadag-II, critical for evacuating power from its project in Karnataka. TPREL requested an extension of the SCOD from March 7, 2025, to 60 days after the ISTS substations become operational.

Background

TPREL’s project was designed to supply 510 MW (255 MW + 255 MW greenshore) of wind-solar hybrid power to Tata Power Delhi Distribution (TPDDL) under a Power Purchase Agreement (PPA) signed on March 7, 2023. As per the agreement, TPREL was to commission the project within 24 months, setting the SCOD for March 7, 2025. However, the operational readiness of the ISTS substations, crucial for power evacuation, has been delayed.

The petition highlights two substations—Koppal-II and Gadag-II—both of which were initially scheduled to be ready by March 2025. However, subsequent delays pushed the expected operational date to December 2025. TPREL argued that these delays are entirely attributable to the Central Transmission Utility of India (CTUIL), justifying the need for a SCOD extension under the PPA.

TPREL argued that it fulfilled all its obligations per the PPA, including applying for connectivity and making the required financial and regulatory arrangements.

It also pointed out that the delays in completing the ISTS substations were beyond its control and entirely due to issues at CTUIL, such as delays in transferring special purpose vehicles and extended timelines for substation construction.

TPREL also noted that the delays could lead to financial consequences, particularly as transmission charges and other financial commitments would accrue if the project extends beyond the agreed SCOD without relief from the regulatory body.

TPDDL did not dispute the delays in the ISTS readiness but emphasized that the SCOD extension must meet the PPA’s terms. TPDDL argued that the burden of proof was on TPREL to demonstrate that the delays were beyond its control and that it had complied with all the relevant procedural requirements.

Additionally, TPDDL referenced its obligation to ensure that the commissioning timeline aligns with its broader power procurement strategy.

Commission’s Analysis

After reviewing the submissions, the Commission acknowledged that TPREL had complied with the application formalities and adhered to the regulatory procedures. The commission concluded that the delays were solely attributable to the transmission provider, CTUIL, and granted the requested extension of the SCOD.

DERC noted that the substations would only be ready by December 2025 and emphasized that TPREL had acted in good faith throughout the process.

The Commission pointed out that this delay would impact the tariff and the supply of green energy to consumers in Delhi. The project’s delay could potentially deprive consumers of competitively priced green energy at ₹3 (~$0.036)/kWh, the rate agreed upon under the PPA.

Moreover, as per Ministry of Power regulations, wind and solar projects commissioned after June 30, 2025, would not benefit from the waiver of ISTS charges. Therefore, the delay could increase transmission costs if the project is not completed by the revised deadline.

Mercom had reported an unprecedented demand for evacuation infrastructure to connect to the grid as renewable energy project developments are surging across India.

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