Central Electricity Regulatory Commission (CERC) issued an order in the matter of SECI against four respondents (Ministry of New and Renewable Energy, Adani Renewable Energy Park (Gujarat) Limited, Punjab State Power Corporation Limited, India Power Corporation Limited) for the adoption of tariff for 600 MW (out of 1200 MW) Wind- Solar Hybrid Power Projects (Tranche-II) connected to the Inter-State Transmission System and selected through a competitive bidding process.
Solar Energy Corporation of India Ltd.(SECI) made the following prayers: “(a) Admit the present Petition; (b) Adopt the tariff discovered in the competitive bid process for the individual power projects as stated in the PPAs with the Wind-Solar Hybrid Power Developer and trading margin of Rs. 0.07/kWh (as mutually agreed between the parties) to be recovered from the Buying Utilities/Distribution Licensees in terms of the PSA.”
Commission considers the request of the Petitioner as regards the adoption of tariff in respect of the Wind-Solar Hybrid Power Projects as discovered under the competitive bid process carried out in terms of the Guidelines issued by the Ministry of New and Renewable Energy, Government of India. Thus according to the order the Commission is required to adopt the tariff, on being satisfied that transparent process of bidding following the guidelines issued by the Central Government.
Ministry of New and Renewable Energy, Government of India on 25.5.2018 has sanctioned the ‘Scheme for Setting-up of 2500 MW ISTS-connected Wind-Solar Hybrid Power Projects’ (‘Scheme’) along with detailed Guidelines for the transparent bidding process for implementation of the said Scheme.
CERC stated that “we have to examine whether the process as per provisions of the Guidelines has been followed in the present case for arriving at the lowest tariff and for selection of the successful bidder. “
As per the Guidelines, SECI in the capacity of intermediary nodal agency invited proposals for setting up of ISTS-connected Wind-Solar Hybrid Power Projects on the pan-India basis, on “Build, Own, and Operate” basis for an aggregate capacity of 1200 MW (Tranche-II) and procurement of power from the projects being set up in relation thereto. As per the arrangements, SECI is required to procure the power by entering into PPAs with the successful bidders with back-to-back PSAs for sale of power to the Buying Utilities/Distribution Licensees.
SECI has prayed to adopt the tariff discovered in the competitive bid process for the individual power Projects. the Commission adopts the following tariff for the Projects as agreed to by the successful bidders, which shall remain valid throughout the period covered in the PSAs and PPAs:-
The order stated that “The Trading Licensee shall make payment of dues by the agreed due date to the seller for the purchase of the agreed quantum of electricity through an escrow arrangement or irrevocable, unconditional and revolving letter of credit in favor of the seller. Such escrow arrangement or irrevocable, unconditional and revolving letter of credit in favor of the seller shall be equivalent to (a) one point one (1.1) times the average monthly bill amount (estimated average of monthly billing amounts for three months or actual monthly billing amount for preceding three months as the case may be) with a validity of one year for long term contracts; (b) one point zero five (1.05) times of contract value for short term contracts.” The above provisions provide for a payment security mechanism to be complied with by the parties to the present Petition. Accordingly, the provisions of Articles 10.3 and 10.4 of the PPAs and Regulation 9(10) of the Trading Licence Regulations shall be abided by all the concerned parties to the present Petition.”
Concluding the commission declares that the Petitioner, SECI shall also be governed by the provisions of Regulation 8(1)(d), the proviso to Regulation 8(1)(d), and provisions of Regulation 8(1)(f) of the Trading Licence Regulations.
Recently, Central Electricity Regulatory Commission(CERC) rejected the petition filed instant Petition against SECI, MNRE, Power System Operation Corporation Limited AND PGCIL with the following prayers: (a) Allow the present Petition; (b) Direct Power Grid Corporation of India to pre-disclose the Relinquishment Charges payable by the relinquishing entity before acceptance of its formal application seeking relinquishment of open access rights; and (c) Pass such other order(s) that this Hon’ble Commission may deem fit in the interest of equity and justice.