Tata Power to Buy 50 MW of Wind Power from SECI at ₹2.52_kWh

The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.52 (~$0.034)/kWh as requested by the Tata Power Delhi Distribution (TPDDL) for 50 MW of wind power from the Solar Energy Corporation of India (SECI).

The Commission noted that the contracting parties need to decide the trading margin of ₹0.07 (~$0.0009)/kWh mutually.

Earlier, TPDDL had filed a petition seeking the adoption of ₹2.52 (~$0.034)/kWh (excluding the trading margin of ₹0.07/kWh) for the purchase of 50 MW of wind power from SECI, based on the competitive bidding process laid down by the Ministry of Power.

TPDDL, in its submission, had stated that being a distribution licensee, it is obligated to purchase electricity from renewable sources for the fulfillment of renewable purchase obligations.


Background

On January 12, 2018, SECI had issued the Request for Selection, along with draft power purchase agreement and power sale agreement documents for setting up of 2 GW of ISTS-connected wind projects.

The e-reverse auction for 2 GW capacity was carried out on February 13, 2018.  ReNew Wind Energy, AP2 Private Limited, Green Infra Wind Energy Limited, Inox Wind Infrastructure Services Limited, Torrent Power Limited, Adani Green, Alfanar Company, and Betam Wind Energy Private Limited were declared the winners with allotted capacities of 400 MW, 300 MW, 200 MW, 499.80 MW, 250 MW, 300 MW, and 50.2 MW respectively.

Later, Tata signed the power supply agreement (PSA) with SECI for the procurement of 50 MW of wind. Since the adoption of the tariff, along with the trading margin, could only be approved by the CERC, Tata filed the present petition.

SECI, in its submission, had stated that apart from TPDDL, there were other distribution licensees who are purchasing power from SECI. Based on the request of the distribution licensees, 200 MW was allocated to Jharkhand Bijli Vitran Nigam Limited (JBVNL), 200 MW to Punjab State Power Corporation Limited (PSPCL), 150 MW to BSES Rajdhani Power Limited (BRPL), and 50 MW was alloted to BSES Yamuna Private Limited (BYPL). Similarly, 300 MW went to Electricity Department of Goa, 300 MW to North Bihar Power Distribution (NBPDCL) and South Bihar Power Distribution Company (SBPDCL), 50 MW to Grid Corporation of Odisha (GRIDCO), 350 MW to Haryana Power Purchase Center (HPPC), and 450 MW was allocated to Madhya Pradesh Power Management Company Limited.  TPDDL was awarded 50 MW, and Chhattisgarh State Power Distribution Company Limited (CSPDCL) got 150 MW.

Subsequently, the Commission approved the tariff of ₹2.44 (~$0.033)/kWh quoted ReNew Wind Energy AP2 Private Limited, Green Infra Wind Energy, Inox Wind Infrastructure Services, and Torrent Power Limited. The tariff of ₹2.45 (~$0.034)/kWh was ratified for Adani Green, Alfanar, and Betam Wind Energy Private Limited.

Further, the Commission noted that the concerned parties should abide by the trading license regulations when it comes to the trading margin. The Commission stated that the petitioners should be governed by regulation 8 (1) (f) which states:

“For transactions under back to back contracts, where escrow arrangement or irrevocable, unconditional and revolving letter of credit is not provided by the trading licensee in favor of the seller, the trading licensee should not charge trading margin exceeding ₹0.02 (~$0.0003)/kWh.”

Recently, the central body also approved a tariff of ₹2.54 (~$0.035)/kWh as requested by Tata Power Delhi Distribution to procure 100 MW of solar power from SECI.

Earlier, CERC had approved a tariff of ₹2.67 (~$0.036)/kWh for SBE Renewable and ₹2.69 (~$0.037)/kWh for Mahoba Solar for the 840 MW of wind-solar hybrid power projects (Tranche I).