The Madhya Pradesh Electricity Regulatory Commission (MPERC) has allowed a developer to enhance the direct current (DC) capacity of its 25 MW solar project, provided the developer adheres strictly to the existing contractual terms and regulatory framework. However, the Commission has also emphasized that any augmentation should not exceed the contracted alternating current (AC) capacity per the power purchase agreement (PPA).

Additionally, the developer must ensure compliance with technical requirements set by the relevant grid authorities and obtain all necessary regulatory clearances before implementing the augmentation.

Background

ACME Solar Energy (MP) had filed a petition before the MPERC seeking approval for augmenting the DC capacity at its existing solar project.

The petitioner contended that advancements in solar photovoltaic technology have improved panel efficiency, allowing for higher energy generation without altering the contracted AC capacity. ACME Solar argued that increasing the DC capacity would enhance the project’s efficiency and ensure optimal utilization of solar resources, ultimately leading to better financial and operational performance.

It maintained that such augmentation is common in the solar industry and does not violate the PPA’s stipulated AC capacity.

The respondent, Madhya Pradesh Power Management Company (MPPMCL), objected to the proposed augmentation. MPPMCL argued that any increase in DC capacity could lead to complications in energy scheduling, grid management, and compliance with contractual obligations. It submitted that allowing such augmentation could create regulatory inconsistencies and set a precedent for future modifications beyond the agreed PPA terms.

MPPMCL pointed out that ACME Solar had entered into the agreement fully aware of the existing constraints and should not be allowed to alter the project’s technical specifications unilaterally.

The respondent also contended that the project operates within the prescribed capacity utilization factor range and fulfils its obligations under the PPA, negating the need for additional DC augmentation. It also argued that the PPA does not provide for repowering and that any such augmentation would require additional capital, which could lead to future claims for tariff revision.

Commission Analysis

The Commission acknowledged that advancements in solar technology have made it possible to increase DC capacity while maintaining the same AC output. It referred to relevant regulations and past precedents, noting that several regulatory bodies have permitted such augmentations under similar conditions.

However, the Commission underscored the importance of adhering to the contractual and regulatory framework governing renewable energy projects. It allowed ACME Solar to augment its DC capacity, provided it does not exceed the contracted AC capacity at the interconnection point. The Commission further instructed ACME Solar to seek prior regulatory approvals for any modifications that could impact grid stability or energy scheduling.

The Commission also directed the Madhya Pradesh Power Management Company to ensure that ACME Solar’s project augmentation does not lead to deviations from the agreed-upon terms of energy procurement. It advised both parties to coordinate and implement necessary technical checks to prevent any potential disruptions in power supply and grid operations.

The  Madhya Pradesh Renewable Energy Policy 2025 targets 50% of annual power consumption from renewable energy resources by 2030.

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