The Himachal Pradesh Electricity Regulatory Commission (HPERC) has allowed  Himachal Pradesh State Electricity Board (HPSEBL) to procure 550 MW of inter-state transmission system (ISTS)-connected solar power from the Solar Energy Corporation of India (SECI) for a period of 25 years.

The agreed tariff for the power is ₹2.56 (~$0.030)/kWh, with an additional trading margin of ₹0.07 (~$0.00082)/kWh payable to SECI.

Background

HPSEBL, the primary electricity distributor in Himachal Pradesh, sought approval to procure solar power from SECI under the 1,500 MW ISTS-connected solar power projects tender Tranche XIII.

The power will be supplied by two solar power developers:

• Sunsure Solarpark Fourteen: 300 MW
• Tejorupa Renewables India Project: 250 MW

The two companies won the auction in March this year.

Commission’s Analysis

The Commission acknowledged a growing demand-supply gap in Himachal Pradesh’s power sector. It agreed with HPSEBL’s assessment that there would be a mismatch between power supply and demand in the coming years, with the gap expected to increase due to continuous growth in power demand.

Promoting solar power aligns with the state’s goal to become a green energy state, as outlined in the HP Energy Policy, 2021.

The Commission noted that the tariff of ₹2.56 (~$0.0300)/kWh was discovered through a transparent bidding process, following the Ministry of Power guidelines.

While approving SECI’s trading margin of ₹0.07 (~$0.00082)/kWh, the Commission also considered that the Central Electricity Regulatory Commission (CERC) had already adopted these tariffs for SECI’s Wind-Solar Hybrid Power Projects (Tranche-VII) connected with the ISTS as per its directions.

The Commission said if SECI fails to provide certain financial securities to the generators, the trading margin would be limited to ₹0.02 (~$0.00023)/kWh.

Any future reduction in SECI’s trading margin must be passed on to HPSEBL.

Developers would bear additional transmission charges beyond the current 50% waiver on ISTS charges if they fail to commission the project and supply power from the scheduled commercial operation date.

In July, HPERC approved the power purchase agreement signed between the HPSEBL and the 1 MW Ganpati Solar Power Project in Kangra District for a tariff of ₹3.50 (~$0.04)/kWh.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.