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In a recent order, the Maharashtra Electricity Regulatory Commission (MERC) allowed extension of scheduled commissioning date (SCOD) to an Avaada Energy Subsidiary, for a 150 MW capacity out of the total awarded 350 MW solar capacity by Maharashtra State Electricity Distribution Company Limited (MSEDCL). Avaada Energy requested waiver of SCOD under the pretext of delay in procuring imported solar modules from China. This is for 150 MW of the total 350 MW of solar capacity. The petitioner for this petition was Avaada Sunce Energy Pvt Ltd (an subsidiary of Avaada Energy) and respondent was MSEDCL.
In reference to the tender of 1000MW solar energy procurement by MSEDCL, released on 2018, Avaada Energy managed 350MW capacity out of total 500MW awarded capacity by MSEDCL. According to the tender document, issuance of LOA , signing of PPA and submission of performance bank guarantee (PBG) was completed by MSEDCL and Avaada Energy. The SCOD for the total 350MW capacity was scheduled to 26 th June, 2021.
The SCOD was extended twice by MSEDCL on Avaada’s request due to the occurence of Covid-19 and subsequent global supply chain crisis.
|Planned Timeline||1st Extension||2nd Extension|
In the meantime, prior to the current petition, Avaada managed to commission total 200MW capacity out of total 350MW capacity.
|Commissioning Capacity (MW)||COD|
|1st Part- 100MW||3 November 2021|
|2nd Part- 50MW||7 January 2022|
|3rd Part- 50MW||02 February 2022|
For the remaining 150MW capacity, Avaada faced an unprecedented challenges in terms of importing solar modules from China. The reasons for the delay in supply of imported solar module were Shortage of power / blackout in China , impact of covid-19 , shortage of raw materials in China. Also, Avaada faced unavailability of the right size and efficiency domestic module in India, in replacement of imported solar module. In the context of the above circumstances, the petitioner asked for extension of SCOD till 31st may, 2022.
Commission’s Analysis & Order
After analyzing all inputs and submission of petitioner and respondent, the commission concluded the following orders.
The petitioner was successful in executing 200MW capacity well before agreed SCOD, 02.02.2022, which showed solar developer’s prudent skill in execution and EPC under lots of unpleasant circumstances. And also, the developer was able to execute total 350MW capacity by 8th April, 2022, which was only 59 days delay from the agreed SCOD. In the above context, and in light of the petitioner’s inability to obtain solar modules from China, the commission agreed that the SCOD would be extended to 350MW capacity up to 8 April 2022. Accordingly, the submitted PBG could not be encashed by the MSEDCL.