After reviewing a petition filed by CLP Power Private Limited, the Gujarat Electricity Regulatory Commission (GERC) has set ₹3.27 (~$0.047)/kWh as the tariff in the power purchase agreement (PPA) signed between Torrent and CLP for the procurement of 49.6 MW of wind power.
CLP Power Private Limited had requested the Gujarat commission to direct Torrent Power to extend the PPA for the sale of 49.6 MW of wind power project by 10 years.
While examining the petition and submissions made by both the parties, the GERC observed, “CLP Power Private Limited and Torrent Power Limited agreed for the period of power purchase from the project for period of 10 years and it was also agreed by the parties that once the said period is completed it will be subject to further extension.”
The GERC further observed that CLP Power Private Limited has also offered a discount to the tune of ₹0.10 (~$0.001)/kWh on the tariff of ₹3.37 (~$0.049)/kWh. The commission noted that Torrent Power Limited was willing to procure power from 49.6 MW of wind projects for an extended 10-year period if the tariff is kept at ₹3.27 (~$0.04723)/kWh.
The GERC added that a mutual agreement has already been reached between the parties regarding tariff for the extended 10-year period and therefore the commission also extended its due approval.
Back in November 2018, the GERC approved Torrent Power’s petitions for the acceptance of deviations from the Ministry of Power (MoP)’s guidelines for the procurement of solar and wind power. Torrent had petitioned the GERC to approve the deviations sought for the procurement of both wind and solar as indicated in the guidelines under Clause 7.4: Payment Security; Clause 7.8: Change in Law and Clause 9.1: Bid Responsiveness.
Then in December 2018, the commission declined a plea filed by the Surat Municipal Corporation (SMC) requesting the commission to direct project developer Torrent Power to enter into a new PPA at a tariff of ₹11.33 (~$0.15)/kWh for a 540 kW rooftop solar project.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.