Author: PPD Team Date: 21/01/2025
Here are the update on the latest regulatory developments in India’s renewable sector:
KERC passes order on non-levy of grid support charges on CPP including SRTPV plants
The Karnataka Electricity Regulatory Commission (KERC) has issued an order stating that no grid support charges shall be levied on captive power plants (CPP), including solar rooftop photovoltaic (SRTPV) plants, that comply with the provisions of Section 9 of the Electricity Act, 2003, and the Electricity Rules, 2005. This directive remains in effect until the Commission determines the grid support charges. Distribution and transmission licensees are instructed to follow this directive and refrain from imposing such charges on CPPs and SRTPV plants until the determination of the grid support charges.
KSERC notifies discussion paper on regulatory framework for the development of renewable energy
The Kerala State Electricity Regulatory Commission (KSERC) has released a discussion paper on the “regulatory framework for the development of renewable energy in the State of Kerala.” The paper outlines the prevailing issues in the state and proposes corrective policy measures to be integrated into the new renewable energy regulations for the control period starting from FY 2025-26. Key recommendations include the implementation of cost-effective energy storage solutions like battery energy storage systems and pumped storage plants to improve grid stability. Existing hydropower projects should be optimised, while new hydroelectric projects should be assessed for feasibility and cost reduction. Additionally, the potential for wind energy in areas like Kanjikode, Attapady, and Ramakkalmedu, as well as offshore wind energy along Kerala’s western coast, should be explored with viability gap funding. The development of green ammonia projects and the exploration of new technologies, such as small modular nuclear plants, should be prioritized to decarbonize industries and secure long-term energy supply as coal plants are phased out.
HPERC allows HPSEBL and VJVSPL’s petition seeking SPPA approval for Kuwarsi HEP
The Himachal Pradesh State Electricity Regulatory Commission (HPERC) has approved the petition filed by Himachal Pradesh State Electricity Board Limited (HPSEBL) and V.B. Hydro Projects Limited (VJVSPL) seeking approval to execute a supplementary power purchase agreement (SPPA) for the Kuwarsi Hydro Electric Project (9.90 MW) on Salun Khad, Chamba, Himachal Pradesh. The commission noted that the joint petitioners have agreed for the sale and purchase of power and have executed the power purchase agreement (PPA) as per the order dated September 6, 2023. The scheduled commercial operation date is July 22, 2025.
The commission has allowed the following terms and conditions for the SPPA:
- A provisional tariff of Rs 4.62 per kWh is permitted after adjusting the applicable industry subsidy.
- This provisional tariff will be applicable for one year from the date of issuance of this order. The parties may approach the commission for an appropriate tariff once the subsidy is released or after one year, whichever occurs first.
- VB Hydro Projects Limited is required to approach the Ministry of Commerce and Industry for subsidy approval as per project registration on the DIPP portal and inform the Commission/HPSEBL regarding the subsidy release. The appropriate tariff will be revised based on the Ministry’s decision regarding the subsidy.
The commission has instructed the joint petitioners to execute the SPPA after making necessary additions and alterations within 30 days of the order and submit three copies to the commission for record.
HPERC allows Solding Hydrowatt’s petition seeking tariff of Rs 4.78 per kWh
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the petition filed by Solding Hydrowatt Private Limited for a tariff of Rs 4.78 per kWh for the Soldan Hydro Electric Project (7.00 MW) located on Solding Khad, Himachal Pradesh, effective from January 17, 2024. This tariff aligns with the tariff determined for the 4th control period.
The commission had previously approved the joint petition for a long-term power purchase agreement (PPA) under the generic levelized tariff on December 30, 2023. The PPA was executed between the parties on February 9, 2024.
The commission observed that the petitioner acted promptly after receiving final approval for the diversion of forest land and, therefore, no fault could be attributed to the petitioner for the non-grant of subsidy under the IDS, 2017. As a result, no adjustment of subsidy in the tariff was required.
Given that the capacity of the project is 7.0 MW and it was commissioned on January 17, 2024 (ahead of the scheduled commercial operation date of April 15, 2024), the tariff of Rs 4.78 per kWh, applicable to projects with an installed capacity of 5 MW to 25 MW in the 4th control period (October 1, 2023, to March 31, 2027), is approved.
The commission has directed that the tariff of Rs 4.78 per kWh be applied from the commissioning date. However, if any future subsidy is granted to the project by the state or central government, the applicant must notify the HPSEBL and the commission, and an appropriate adjustment of the tariff will be made. The parties have been instructed to execute the supplementary PPA within 30 days from the date of the order.
HPERC allows tripartite agreement among HPSEBL, Lanco Hydro Power and Engenrin Hydro Power for Baner-III HEP
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the joint petition filed by Himachal Pradesh State Electricity Board Limited (HPSEBL), Lanco Hydro Power Limited, and Engenrin Hydro Power Limited for a tripartite agreement. This agreement will be incorporated into the power purchase agreement (PPA) and supplementary PPA (SPPA) concerning the Baner-III Hydro Electric Project (HEP) (5.0 MW).
The commission has authorized the substitution of Lanco Hydro Power’s name with Engenrin Hydro Power as per the tripartite agreement dated May 20, 2024. Consequently, the name of Vamshi Hydro Energies and Lanco Hydro Power in the tripartite agreement dated December 30, 2015, between HPSEBL and these entities will be replaced with Engenrin Hydro Power Limited.
The parties are instructed to sign the tripartite agreement, and Engenrin Hydro Power will be required to adhere to all the terms and conditions of the original PPA dated December 1, 2006, SPPA dated December 6, 2010, and all other related documents.
HPERC allows tripartite agreement among HPSEBL, Lanco Hydro Power and Engenrin Hydro Power for IKU-II HEP
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the joint petition filed by Himachal Pradesh State Electricity Board Limited (HPSEBL), Lanco Hydro Power Limited, and Engenrin Hydro Power Limited. The petition seeks approval of a tripartite agreement, making it part of the power purchase agreement (PPA) and supplementary power purchase agreement (SPPA) for the IKU-II Hydro Electric Project (5.0 MW).
The commission noted that a tripartite agreement was initially signed by Vamshi Hydro Energies and Lanco Hydro Power on January 30, 2015. Subsequently, Lanco Hydro Power transferred all assets, obligations, liabilities, rights, privileges, and benefits to Engenrin Hydro Power. A new tripartite agreement, dated May 20, 2024, was signed between the Government of Himachal Pradesh, Lanco Hydro Power, and Engenrin Hydro Power. Under this agreement, Engenrin Hydro Power has agreed to take over all the project’s assets, obligations, and clearances.
The commission has approved the substitution of Lanco Hydro Power with Engenrin Hydro Power as per the new agreement. Consequently, the names of Vamshi Hydro Energies and Lanco Hydro Power, as appearing in the PPA dated December 1, 2006, SPPA dated December 12, 2010, and the tripartite agreement dated January 30, 2015, will now be read as Engenrin Hydro Power.
OERC passes orders for the petition filed by Distributed Solar Power Association
The Odisha Electricity Regulatory Commission (OERC) has passed orders in response to the petition filed by the Distributed Solar Power Association (DiSPA). The petition sought directions and clarifications regarding the banking of energy by consumers of green power in Odisha.
The commission observed that DiSPA did not define off-peak solar hours, although it had defined “peak hours” as 6:00 PM to 12:00 AM midnight, with the remaining hours, including solar hours, considered as off-peak.
The commission stated that it has minimal involvement in the banking methodology devised by GRIDCO, which had been designated as the Nodal Agency by the State Government for formulating the methodology for green energy banking. This methodology had been developed after detailed deliberations by a committee comprising members from the Energy and Industry Departments, OPTCL, GRIDCO, and SLDC. The methodology had received the concurrence of the State Government.
As there are no provisions under OERC’s regulations for prior public consultation or seeking approval for the banking methodology, the commission emphasized that it would not intervene. However, the commission directed GRIDCO to consider the specific concerns raised by the petitioner regarding the security deposit and the banking agreement. GRIDCO was asked to address these concerns if necessary, in the larger interest of the state and the development of renewable energy generation and green hydrogen production in Odisha.
UPERC approves power procurement for UPPCL
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the petition filed by Uttar Pradesh Power Corporation Limited (UPPCL) for the procurement of 1,175 MW of wind power. This procurement is made under the power sale agreement (PSA) dated May 30, 2024, on a long-term basis, through the Tariff Based Competitive Bidding (TBCB) process under the Inter-state Transmission System Tranche-XVI Scheme.
The successful bidders and their respective quantum and tariff are as follows:
- Powerica Limited: 50 MW at Rs 3.70 per kWh
- JSW Neo Energy Limited: 175 MW at Rs 3.60 per kWh
- JSW Neo Energy Limited: 150 MW at Rs 3.68 per kWh
- JSW Neo Energy Limited: 700 MW at Rs 3.61 per kWh
- Torrent Power Limited: 100 MW at Rs 3.60 per kWh
The commission has also approved the inclusion of a trading margin of Rs 0.07 per kWh in the procurement agreement. However, if the Solar Energy Corporation of India (SECI) fails to provide an escrow arrangement, the trading margin will be reduced to Rs 0.02 per kWh. Additionally, the commission has approved the power sale agreement (PSA) dated May 30, 2024, between UPPCL and SECI.
Featured photograph is for representation only.
