The Haryana Electricity Regulatory Commission (HERC) approved a draft power purchase agreement by Haryana Power Purchase Center’s (HPPC). The draft PPA was to be executed with LR Energy for 10 MW of solar power on a short-term basis for three months.

The order allowed HPPC to issue the letter of intent and sign the PPA. Both parties can extend the contract up to March 31, 2021, at ₹2.70 (~$0.036)/kWh.

Background

HPPC is a joint forum of the distribution companies in Haryana. This includes Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) and the Dakshin Haryana Bijli Vitran Nigam Limited (DHBVN).

HPPC had filed a petition seeking approval to procure 10 MW of solar power from LR Energy on a short-term basis. The project is located at Dudianwali village in Sirsa district of Haryana.

As per the available renewable sources and tie-ups in the state, 550 million units (MUs) and 1,900 MUs of solar and non-solar renewable energy is likely to be sourced against the target of 2,542 MUs and 1,090 MUs during the financial year 2020-21.

Recently, HERC approved the HPPC’s draft PPA with Amplus Sun Solutions Private Limited. The PPA was signed for 50 MW of solar power from its project in Bhiwani.

The Commission earlier approved the purchase of 300 MW of solar power on a short-term basis until October 31, 2020. Nearly 220 MUs of solar energy is expected through this arrangement during September 2020 and October 2020. After this, the shortfall is likely to be 1,772 MUs.

HPPC, in its submission, said that the offered rate of solar power was less than the average variable cost of ₹2.88 (~$0.039)/kWh determined by the Commission in its tariff order. The state DISCOM noted that the proposal of LR Energy was reasonable and may be considered for the fulfillment of solar RPOs for the FY 2020-21.

The Commission also noted that to meet the RPO obligations, HPPC had floated a tender to purchase 300 MW of solar power. The 300 MW was split into 240  MW in Category-I,  reserved for large developers with a minimum capacity of 3  MW and maximum up to 240 MW and 60  MW in  Category-II reserved for small developers in Haryana with a capacity of 1 or 2 MW.

Further, the Commission noted that it earlier approved 240 MW of solar power procurement from Avaada Energy Private Limited at the rate of ₹2.73 (~$0.037)/kWh. Under Category-II, PPA was signed for 1 MW at ₹2.99 (~$0.04)/kWh.

The state regulator noted that trading on the green term-ahead market (G-TAM) started from August 21, 2020, on the IEX platform. The rate on day ahead transaction in G-TAM had varied from ₹3 (~$0.040)/kWh on August 21, 2020, to ₹3.80 (~$0.051)/kWh on September 10, 2020.

Though the state had decided to waive off the current backlog due to the ongoing pandemic, it had directed the DISCOMs to make every possible effort to meet the RPO targets.

Keeping all these aspects under consideration, the Commission permitted HPPC to procure power on a short-term basis from LR Energy at ₹2.70 (~$0.036)/kWh for three months.