Kerala Commission Asks KSEB to Clarify Tariff Period, PPA Date for a Wind Project

The Kerala State Electricity Regulatory Commission (KSERC) has asked the Kerala State Electricity Board (KSEB) and Kosamattam Finance Ltd. to arrive at a consensus regarding the date of commercial operation, tariff period, and the  effective date and term of the power purchase agreement (PPA) for a 1 MW wind energy project in the state.

Kosamattam Finance Ltd. had petitioned the KSERC requesting that the commission approve the proposed project-specific tariff of ₹6.33 (~$0.091)/kWh and declare May 21, 2018, as the date of the commercial operation for the 1 MW wind energy project developed by the company in Kerala.

Kosamattam Finance had also requested that the KSERC direct KSEBL to pay the average pooled purchase cost (APPC) of ₹3.90 (~$0.056)/kWh until the commission comes out with an order.

After going through the submissions made by both the parties, the KSERC noted that the petitioner (Kosamattam Finance Ltd.) and the respondent (KSEB) have to arrive at a consensus for getting the approval of the PPA to be entered into.

The KSERC also ordered Kosamattam Finance to submit the justification on the high capital cost claimed by it for the wind energy project along with the tax invoice and other supporting documents within 15 days of the order.

In its order, the KSERC also stated that Kosamattam Finance Ltd. and KSEB would strive for a consensus regarding the PPA, tariff, commercial operation date, and report back to the commission.

Moreover, the commission has also asked KSEB to clarify the treatment of transmission losses from the pooling stations to the nearest substation in the case of the 1 MW wind project developed by Kosamattam Finance Ltd.

Recently, the Kerala commission approved the modifications in the standard bid document relating to the capacity utilization factor, metering point, and project location for 200 MW of solar projects. The KSEB had petitioned KSERC to approve modifications.