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					</table>The Rajasthan Electricity Regulatory Commission (<a href="https://rerc.rajasthan.gov.in/" target="_blank" rel="noopener">RERC</a>), in a recent order, granted approval to Rajasthan Urja Vikas Nigam (<a href="https://energy.rajasthan.gov.in/ruvks/#/home/dptHome" target="_blank" rel="noopener">RUVNL</a>) to extend the power purchase agreements (PPAs) with 12 wind power generators by five years.
It said that the tariff for the extended period will be ₹2.44 (~$0.029)/kWh as mutually agreed between RUVNL and the 12 wind power generators.
The state regulator said that RUVNL and the generators might sign supplementary PPAs to extend their earlier PPAs.
Background
RUVNL had filed a petition seeking the extension of PPAs with 12 wind power generators per the terms of Tariff Determination Regulations 2020.
In its submission, the DISCOM said that it had executed PPAs with 12 wind power generators for projects in different parts of Rajasthan, which had expired or were going to expire. So, as per the terms of Tariff Determination Regulations 2020, it had requested the Commission to extend the PPAs.
RUVNL said that the generators had agreed to extend the PPAs at a tariff of ₹2.44 (~$0.029)/kWh.
It added that the extension will help achieve renewable purchase obligation (RPO) targets, which the state DISCOMs are struggling to meet for now.
The generators also submitted that per Regulation 10 of the Tariff Regulation of 2020 and the PPA, the period can be extended up to five or ten years. They submitted a fresh letter for an extension of the term of the PPA up to ten years for the Commission to consider while deciding the matter.
Commission’s analysis
The Commission observed that the DISCOM might procure power from renewable energy projects at its discretion; however, before doing so, it may have to consider three aspects:
<ul>
<li>The overall energy requirement and energy availability from various sources.</li>
<li>To meet RPO targets for the year.</li>
<li>The tariff for such procurement is equivalent to the latest tariff discovered through competitive bidding for relevant technology.</li>
</ul>
However, for this extension, the DISCOM has to enter into an agreement with the renewable energy project developer during the extended period at mutually agreed terms to be approved by the Commission.
The Commission noted that by going through the RPO compliance status, the DISCOMs have to meet their shortfall in RPO targets of the earlier years, and RPO targets fixed for them for the financial year (FY) 2022-23 and FY 2023-24 were even higher. Out of all the previous years, the solar RPO target was only met in FY 2019-20.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1.jpg"><img loading="lazy" decoding="async" class="alignnone wp-image-58910 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1.jpg" alt="RERC RPO-1" width="766" height="303" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1.jpg 766w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1-300x119.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1-650x257.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1-624x247.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/RERC-RPO-1-600x237.jpg 600w" sizes="(max-width: 766px) 100vw, 766px" /></a>
Regarding the request of some of the generators for a ten-year extension, the Commission stated that PPAs can only be extended to match the useful life of wind power projects as specified in the Tariff Regulations 2020.
Further, it added that all the projects had completed or were going to be completed 20 years from their respective commercial operation dates. Thus, the PPAs of the respondents can be extended only by five years. In view of this, the Commission rejected the request of some of the generators for an extension of ten years.
The Commission observed that the tariff of ₹2.44 (~$0.029)/kWh, as proposed by RUVNL for the extended period of the PPAs and agreed upon by the wind generators, was the lowest tariff discovered through a tariff-based competitive bidding process conducted by the Solar Energy Corporation of India (SECI) for wind power projects.
Accordingly, the Commission said that it was satisfied with the mutually agreed tariff of ₹2.44 (~$0.029)/kWh for a five-year extension period of the PPAs, and it was reasonable for the procurement of power by RUVNL.
Last month, RERC <a href="https://www.mercomindia.com/rerc-discom-settle-arrears-solar-wind-developers-ppas" target="_blank" rel="noopener">allowed</a>  RUVNL to pay the arrears to renewable energy developers who had supplied solar and wind power to the DISCOM beyond the PPAs.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Rajasthan Regulator Allows Five-Year Extension on Expired PPAs for Wind Projects

The Andhra Pradesh Electricity Regulatory Commission (<a href="http://aperc.gov.in/" target="_blank" rel="noopener noreferrer">APERC</a>) has approved the execution of an amended power purchase agreement (PPA) between Ramagiri Renewable Energy Limited (RREL) and Transmission Corporation of Andhra Pradesh (<a href="http://www.aptransco.gov.in/transco/" target="_blank" rel="noopener noreferrer">APTRANSCO</a>).
The PPA in question is for the sale of power from a 6.5 MW wind project in Anantapur district of the state. The commission has directed the two parties to sign an amended PPA within two weeks.
The state body has also asked the generator to pay all the outstanding dues amounting to ₹6.85 million (~$96,126) to the petitioner for the power supplied from May 2018 within a month.
Background
Ramagiri Renewable Energy Limited (formerly IL&amp;FS Wind Farms Limited) had filed a petition claiming that it had entered a PPA with APTRANSCO in August 2001 for sale of power from its 6.5 MW wind power project in Anantapur district of Andhra Pradesh.
After two years, the same PPA was revised due to a change in the name of the petitioner from Infrastructure Leasing and Financial Services Limited to IL&amp;FS Wind Farms Ltd.
Again, after nearly two years, the government of Andhra Pradesh ordered the transfer of supply undertakings and PPAs to the distribution licensees. With this change, the PPA fell under the Southern Power Distribution Company of Andhra Pradesh Ltd (SPDCAL), which was also a respondent in this case.
The project was receiving a tariff of ₹3.37 (~$0.05)/kWh until the expiry of the PPA in November 2015 after which the Andhra Pradesh Power Coordination Committee, a state government entity supporting the distribution companies in the state with power procurement, inter-state and intra-state trading functions, applied to the Commission seeking approval for the extension of the PPA for two years. With the PPA extension, the tariff was revised downward to ₹2.23 (~$0.03)/kWh for the period between November 6, 2015, and November 6, 2017.
Later, the agreement period was again extended for another two years at the same tariff of ₹2.23 (~$0.03)/kWh, entering an amended PPA in October 2017 with SPDCAL.
When Ramagiri Renewable Energy requested for further extension of the PPA on October 23, 2017, it was not considered, and the PPA expired on October 26, 2017, and the project was disconnected.
However, Ramagiri Renewable Energy and SPDCAL, on August 8, 2018, amended the PPA and extended the date of PPA to March 31, 2019, at the same tariff rate of ₹2.23 (~$0.03)/kWh.
In this context, SPDCAL argued that the project was disconnected, and it was not informed to the commission when the project had been reconnected.
So, Ramagiri Renewable Energy has now requested the commission to approve the date of amended to be the date of reconnection (May 14, 2018) for the sale of power generated from the 6.5 MW power project.
It also requested the APERC to direct the DISCOMs to pay the amount of ₹6.85 million (~$96,126) for 3,071,400 units supplied at the rate of ₹2.23 (~$0.03)/kWh from May 14, 2018, to August 8, 2018.
In response to this petition, the Commission has ordered the DISCOM to consider the date of amended PPA to be May 14, 2018, which is the date of reconnection of the project to the grid instead of the date of entering into the agreement, March 31, 2019. The Commission has directed the DISCOM to enter into the amended PPA within two weeks of this order. The Commission has also instructed the DISCOMs to pay the dues of ₹6.85 million (~$96,126) within four weeks of this order.
Andhra Pradesh created ripples in the renewable industry by announcing its intent to revisit and renegotiate PPAs already signed. After a series of petitions, warnings by the central power minister and court cases,  the Andhra Pradesh high court recently <a href="https://mercomindia.com/andhra-court-public-hearing-revise-solar-tariffs/">stayed</a> the notice issued by the APERC for public hearings to revise solar tariffs.  Also, giving relief to the developers, the Andhra Pradesh High Court at Amravati <a href="https://mercomindia.com/court-andhra-discoms-clear-solar-wind-dues/">directed</a> the state DISCOMs to clear the dues of solar and wind developers within four weeks of its order dated December 20, 2019.
Image credit: Chmee2 [CC BY-SA <a href="https://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener noreferrer">3.0</a>]

Andhra Pradesh Approves Amended PPA for 6.5 MW of Wind Projects

Mrs. Aishwarya Rai Bachchan along with Relishah Export (RM) and Classic marble Company Private Limited (CMCPL), have jointly filed a case with the Maharashtra Electricity Regulatory Commission (<a href="https://www.merc.gov.in/" target="_blank" rel="noopener noreferrer">MERC</a>) against the <a href="http://www.mahadiscom.in/" target="_blank" rel="noopener noreferrer">Maharashtra State Electricity Distribution Company Limited</a> (MSEDCL) for the delay in payments towards the power generated from wind energy projects.
Similarly, Vostok (Fareast) Securities Private Limited (VFSPL), Silverline Investment Company Private Limited (SICPL), and Bengal Cardboard Industries &amp; Printers Private Limited (BCIPPL), have also filed petitions against MSEDCL for the same reason.
All six petitioners are wind power generators.
The commission has directed MSEDCL, the respondent, in this case, to reconcile the statement of accounts with the petitioners within two weeks and intimate the date by which the payment would be made.
The MSEDCL owes a total sum of ₹30.24 million (~$0.423 million) to the six wind generators.
The commission noted that MSEDCL made the payments of the outstanding principal amount and delayed payment charges as claimed by the petitioners in their original petitions. It also stated that MSEDCL has started paying some amount including late payment charges which were due to be paid to the wind generators after the original petition, but, there is still some amount pending for payment.
The Commission has now ordered the MSEDCL to note that if the payment is further delayed, penal interest of 1.25% per month on the late payment charges will have to be paid.
In May 2019, Mercom had <a href="https://mercomindia.com/merc-warns-msedcl-wind/" target="_blank" rel="noopener noreferrer">reported</a> that MERC reprimanded MSEDCL for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, and for disregarding the previous orders of the commission.
The state has been struggling to meet its solar and non-solar renewable purchase obligations (RPOs) and has been issuing tenders to procure <a href="https://mercomindia.com/maharashtra-tender-solar-projects/" target="_blank" rel="noopener noreferrer">solar</a> and <a href="https://mercomindia.com/maharashtra-wind-energy-tariff-cap/" target="_blank" rel="noopener noreferrer">wind</a> energy to meet the obligations. The tariff caps and the questionable creditworthiness of the DISCOM have earlier seen a <a href="https://mercomindia.com/maharashtra-ag-feeder-solar-retender/" target="_blank" rel="noopener noreferrer">tepid</a> response for the tenders issued.
Tag: Maharashtra Electricity Regulatory Commission, MSEDCL, wind generators, petitions, respondent, delay payment, MERC, delayed payment charges

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