West Bengal Electricity Regulatory Commission (WBERC) has approved a power sale agreement (PSA) between the Damodar Valley Corporation (DVC) and NHPC for procuring firm-and-dispatchable renewable energy (FDRE) from ACME Solar Holding’s 250 MW solar project coupled with a 250 MW/1,150 MWh battery energy storage system (BESS).

It also approved a tariff of ₹4.63 (~$0.051)/kWh, inclusive of a trading margin of ₹0.07 (~$0.00078)/kWh.

Background

NHPC issued a tender to develop 1,200 MW of interstate transmission system (ISTS)-connected FDRE projects, coupled with energy storage systems, anywhere in India. This tender was part of NHPC’s aim to procure 2,350 MW FDRE to help fulfill distribution company (DISCOM) RPOs.

ACME Solar Holding won the auction to set up a 250 MW solar project and a 250 MW/1,150 MWh BESS built on a build, own, and operate basis in Rajasthan. NHPC signed a power purchase agreement with ACME Solar.

NHPC offered to supply the assured peak power to DVC. DVC, in turn, obtained approval at its board meeting for procuring 250 MW of solar energy coupled with the BESS capacity from ACME Solar’s FDRE project.

DVC signed a PSA with NHPC for procuring the power from ACME Solar’s FDRE project for 25 years at a quoted tariff of ₹4.63 (~$0.051)/kWh, inclusive of a trading margin of ₹0.07 (~$0.00078)/kWh.

It approached WBERC for approving the PSA along with the quoted tariff.

DVC submitted that the purchase of solar power through the PSA would help meet its RPO targets as a DISCOM in Jharkhand and West Bengal.

It also contended that the power procurement would be exempt from the ISTS charges under the Ministry of Power’s order on May 29, 2023, as well as the Central Electricity Regulatory Commission’s (CERC) regulations on the sharing of ISTS charges (2020, first amendment) issued on February 7 of the same year.

Additionally, DVC submitted that the CERC had already approved the quoted tariff, inclusive of the trading margin, in an earlier order.

Commission’s Analysis

The Commission observed that DVC’s procurement of power from ACME Solar’s FDRE project would help it sustainably reduce cost of peak power procurement, provide reliability and flexibility in the economic operation of its overall power system, and help it meet its RPO targets.

WBERC also noted CERC’s approval of the quoted tariff in its earlier order.

The Commission approved the PSA between DVC and NHPC for procuring power from ACME Solar’s FDRE project, along with the quoted tariff, inclusive of the trading margin.

It also directed DVC to comply with the applicable law governing scheduling.

Recently, WBERC granted CESC approval to procure 600 MW of wind-solar hybrid power through tariff-based competitive bidding.

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