The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the power purchase agreement (PPA) signed between the HP State Electricity Board (HPSEBL) and the 1 MW Ganpati Solar Power Project in Kangra District.

The Commission said that a tariff of ₹3.50 (~$0.04)/kWh will apply to the Ganpati Solar Power Project. The tariff is provisional and subject to further adjustment of subsidy, if any.

Background

The petition for approval of the PPA was filed jointly by HPSEBL and Ganpati Solar Power Project.

HPSEBL and Ganpati Solar signed the connection agreement on May 24, 2024, which specified that the interconnection point would be at the existing 11 kV Jhalera feeder emanating from 2×6.30 MVA, 33/11 kV sub-station, Basal.

The Commission had on March 14, 2024 established the standard tariff for solar projects for FY 2024-25 under the HPERC (Promotion of Generation from Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017.

Ganpati Solar submitted an undertaking saying that as the project is situated in a rural area, the tariff for projects to be set up in such zones up to 1 MW is ₹3.50 (~$0.04)/kWh. The same tariff will apply to the project.

As per the draft PPA, the completion date of the project is April 26, 2025.

Commission’s Analysis

The Commission acknowledged the signing of the connection agreement and that the power generated from solar projects ranging from 250 kW to 1 MW capacity would be purchased mandatorily by the HPSEBL, if commissioned on or before March 31, 2030, at the approved tariff.

The Commission referred to its March 14, 2024 order, determining the standard tariff for five solar power projects for FY 2024-25.

Projects to be set up in places other than industrial and urban areas:

• Up to 1 MW: ₹3.50 (~$0.04)/kWh
• Above 1 MW and up to 5 MW: ₹3.47 (~$0.04)/kWh

Projects to be set up in industrial areas and urban areas:

• Up to 1 MW: ₹3.55 (~$0.04)/kWh
• Above 1 MW and up to 5 MW: ₹3.52 (~$0.04)/kWh

The Commission concluded that as the project is in a rural area with a capacity of 1000 kW, it is allowed the tariff of ₹3.50 (~$0.04) per kWh, which is subject to adjustments in capital subsidy, if any.  If the project’s commissioning is delayed beyond SCOD, i.e., April 26, 2025, and the tariff in the said control period is less, Ganpati Solar will have to provide power to HPSEBL only at this tariff.

The Commission set the following conditions:

• Ganpati Solar will seek applicable financial assistance for the solar project from the state or central government or its designated department(s) or agency(ies). It will inform HPSEBL of the subsidy released to the project within 15 days of the receipt and an affidavit to this effect will form part of the PPA.
• If the meter is installed on its premises, the Ganpati Solar will bear the notional line losses up to the injection point. If the metering point is located within HPSEBL’s facilities, HPSEBL will bear the notional line losses from the injection point to the metering location. HPSEBL will pay Ganpati Solar Power Project credit for the losses from the injection point to the metering location.
• The project’s Scheduled Date of Synchronization is April 11, 2025, and its SCOD is April 26, 2025. This has been specified in Schedule I and will form part of the PPA. If there is a delay in the project commissioning beyond SCOD, and the tariff in the said control period is less, the Ganpati Solar will have to provide power to HPSEBL at this tariff.

In January 2022, HPERC set ₹2.49 (~$0.033) as the average power purchase cost for the financial year 2021-22 under the renewable energy certificate mechanism.

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