Haryana to Procure 150 MW of Renewable Power with Assured Peak Power Supply

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The Haryana Electricity Regulatory Commission (HERC) recently allowed  Haryana Power Purchase Center (HPPC) to procure 150 MW of renewable power with a guaranteed peak power supply from the Solar Energy Corporation of India (SECI).

However, in the absence of the draft power purchase agreement (PPA) between the parties, it said that for any non-supply or curtailment of power during the agreed-upon peak hours, the penalty payable to the Haryana Power Purchase Center should be 100% of the tariff agreed upon by the parties.

The Commission added that the liquidated damages clause for non-supply, curtailed supply during peak hours, and non-commissioning of the project during the stipulated 18 months will also be enforceable under the power sale agreement (PSA).

HPPC had filed a petition seeking approval for the procurement of 150 MW of renewable power from SECI for 25 years at a levelized tariff of ₹3.96 (~$0.049)/kWh with an off-peak tariff of ₹2.88 (~$0.036)/kWh and a peak tariff of ₹6.85 (~$0.086)/kWh, plus a trading margin of ₹0.07 (~$0.0008)/kWh.


Background

On December 20, 2021, SECI communicated the various offers of power supply that HPPC could consider. Later, HPPC deliberated all four offers of SECI in the Steering Committee of Power Planning (SCPP) meetings which decided to obtain information from SECI if the offered programs were being through competitive bidding.

Subsequently, after considering the competitiveness of the offer made by SECI, HPPC intimated its consent to procure 150 MW of renewable power from ReNew Solar through SECI at a levelized weighted tariff of ₹3.96 (~$0.049)/kWh with an off-peak tariff of ₹2.88 (~$0.036)/kWh and a peak tariff of ₹6.85 (~$0.086)/kWh plus SECI’s trading margin of ₹0.07 (~$0.0008)/kWh.

SECI had clarified that the selection of the successful bidder and determination of tariff had been carried out by SECI through a transparent process of competitive bidding per guidelines issued by the Ministry of Power.

In January 2020, Greenko Group and ReNew Power won the auction conducted by the SECI for 1.2 GW of solar, wind, and energy storage projects with a guaranteed peak power supply. While Greenko has been awarded 900 MW, ReNew Power has won 300 MW of projects. Greenko Group won the bid at a peak power tariff rate of ₹6.12 (~$0.086)/ kWh, and ReNew Power won at ₹6.85 (~$0.096)/kWh. Of the 300 MW capacity won by ReNew, 150 MW was agreed to be supplied to Goa.

The petitioner, in its submission, added that the existing solar power capacity available with Haryana distribution companies (DISCOMs) through long-term agreements stood at 618.8 MW, with about 384 MW of rooftop solar, whereas 617 MW was available from non-solar renewable sources.

HPPC said that the total installed solar capacity of 2,050 MW (including about 450 MW from rooftop solar) and 1,565 MW non-solar (including 1300 MW of wind) would be available with Haryana DISCOMs by the end of FY 2022. The solar and non-solar renewable purchase obligation (RPO) targets of 9.80 % and 11.04%, respectively, were to be achieved through current sources during FY 2023.

HPPC pointed out that the tariff offered by SECI was lower than the variable cost of the power sourced from thermal stations and lower than the short-term power procured from other sources.

It argued that hybrid power would lead to optimum cost utilization and enable the DISCOMs to fulfill the renewable solar and non-solar purchase obligations.

Commission’s analysis

The Commission observed that the 150 MW of power was to be procured from ReNew Solar, having a capacity of 300 MW with provision for 50% battery backup, which would provide assured peak hours supply for 50% capacity for six hours to be chosen from ‘18.00 hrs to 24.00 hrs’ and ‘06.00 hrs to 09.00 hrs.’

The state regulator considered HPPC’s argument that for any shortfall during the agreed-upon off-peak supply, the compensation should be at 50% of the off-peak tariff of ₹2.88 (~$0.036)/kWh because generation was dependent on natural factors. However, power supply during peak hours is assured and is from battery storage. Hence the compensation for any shortfall in supply should be calculated at 100% of the full peak tariff of ₹6.85 (~$0.086)/kWh.

The Commission noted that there was a significant gap between peak demand and base load demand in Haryana. Hence, besides planning to meet the peak load demand, HPPC should vigorously manage the demand side.

Recently, HERC approved the PSA submitted by HPPC to procure 800 MW of interstate transmission system-connected wind-solar hybrid power (Tranche IV) from SECI at a levelized tariff of ₹2.34 (~$0.029)/kWh for 700 MW and ₹2.35 (~$0.03)/kWh for 100 MW.

Earlier, HERC had ruled that a tariff of ₹5.68 (~$0.077)/kWh (without appreciated depreciation) and ₹5.08 (~$0.068)/kWh (with accelerated depreciation) would be applicable for a 1 MW solar project as determined by the Appellate Tribunal for Electricity.

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