KERC Approves Tariff of Rs 8.40/kWh for Delayed Solar Project


The Karnataka Electricity Regulatory Commission (KERC) has approved a tariff of Rs 8.40 /kWh as per the power purchase agreement (PPA) signed between Bangalore Electricity Supply Company Limited (BESCOM) and the project developer, Cambria Solar. The Commission also approved the extension of six months granted by BESCOM.


Cambria Solar had filed a petition for approval of six months extension in the scheduled commercial operation date and had requested to approve the tariff of Rs 8.40/kWh from the project’s commercial operation date for the entire term of the PPA.


As per the PPA, the scheduled date of completion was to be achieved within 18 months from the signing of the PPA.


The developer informed BESCOM on November 29, 2016, that it had applied for the bay allocation from the Karnataka Power Transmission Corporation Limited (KPTCL) but had not received the bay allotment due to augmentation of the transformer at 66/11 KV Moregere Substation. The developer sought an extension of six months from January 6, 2017, which it perceived to be the scheduled commercial operation date. KPTCL granted evacuation approval to the petitioner.

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The commission noted that the KPTCL gave the approval for evacuation after a lapse of more than two months. Moreover, BESCOM and KPTCL had not denied these facts.

Considering these facts and considering a substantial investment in the project, BESCOM granted an extension by six months.

The regulator noted that the petitioner was entitled to the tariff of Rs 8.40 /kWh from the commercial operation date because it had implemented the project within the extended time. Due to the ‘force majeure’ event, it could not commission the project within 18 months from the effective date.

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