CERC Orders MNRE To Pay Trade Margin of Rs.0.07/kWh To SECI

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Central Electricity Regulatory Commission (CERC)  passed an order in the matter of SECI in regards to adoption of tariff for 480 MW Solar PV Projects (Tranche-V) connected to the Inter-State Transmission System and selected through a competitive bidding process as per the Standard Bidding Guidelines. 

Solar Energy Corporation of India Limited (SECI), has filed  Petition under Section 63 of the Electricity Act, 2003 for adoption of tariff for 480 MW solar power projects (Tranche-V) connected to inter-State Transmission System (ISTS) and selected through competitive bidding process as per the “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects”  issued by the Ministry of Power, Government of India. 

SECI filled plea against 6 Utilities which includes South Bihar Power Distribution Company Limited, North Bihar Power Distribution Company Limited, SBE Renewables Sixteen Projects Private Limited, Bihar State Power (Holding) Company Limited, GRT Jewellers (India) Private Limited and Ministry of New and Renewable Energy.

The SECI  made the following prayers: Adopt the tariff discovered in the competitive bid process for the individual power projects and in addition, there will be the trading margin of Rs.0.07/kWh to be recovered from the Buying Utilities/Distribution Licensees in terms of the PSAs with the Buying Utilities/ Distribution licensees, Grant SECI an exemption from complying with the provisions of the Guidelines.

SECI has submitted that it issued Request for Selection (RfS) along with draft Power Purchase Agreement (PPA) and Power Sale Agreement (PSA) documents for setting up of 1200 MW ISTS connected solar power projects (Tranche-V) as per the Guidelines and floated the same on 28.6.2019 on the portal of Telecommunication Consultant India Limited (TCIL).

SECI has also submitted that the solar power projects are scheduled to be commissioned in the year 2021-22 and these Projects would help the buying utilities/ Distribution Licensees in meeting their Renewable Purchase Obligations (RPOs) requirements apart from providing power at very economical rates. It has also submitted that it has agreed to sell entire 480 MW of solar power to the buying utilities/ Distribution Licensees at the rate of Rs. 2.53/kWh (150 MW) and Rs. 2.65/kWh (330 MW) plus trading margin of Rs.0.07/kWh upon commissioning of the above capacity.

SECI has also prayed to grant exemption from complying with the provisions of the Clause 3.1.1 (b) of the Guidelines and has submitted that this provision was introduced for the first time w.e.f. 3.8.2017 and there was no such provision under the previous Guidelines notified by the Central Government. 

Commission stated that SECI did not inform about the initiation of bidding and commission from complying with the requirement specified in Clause 3.1.1 (b) of the Guidelines.It also directed to comply SECI with such requirements in future. 

To know more about the order refer to document below:

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