The effective power purchase agreement (PPA) date of the 300 MW solar project, between ACME Sikar Solar (ASSPL) and the power buyer Maharashtra State Electricity Distribution Company Limited (MSEDCL) has been changed from April 4 to May 6, 2022, with the approval of the Maharashtra Electricity Regulatory Commission (MERC).
The Commission additionally stated that due to the delay, MSEDCL would be responsible for the additional cost of power purchase for the 32 days prior to the project’s real commissioning. Consumers cannot be charged for the amount.
ASSPL requested the date adjustment from the Commission on the basis that MSEDCL executed and handed the PPA to ASSPL on May 6, 2022.
On May 6, 2021, MSEDCL announced a tender to purchase electricity from solar PV projects through open bidding, in which ACME Solar Holdings received the letter of award for a capacity of 300 MW out of a total of 500 MW capacity after winning the bid, on December 14 of the same year.
ASSPL was established to build the power plant in Rajasthan in January 2022, and on March 11, the commission approved the project’s tariff of Rs. 2.42/kWh.
After that, the developer, in accordance with the terms of the tender, presented a performance bank guarantee in the amount of Rs. 240 million, following which, ASSPL signed the PPA on April 4, 2022, however, MSEDCL provided the original copy of the PPA after a delay of more than a month.
The Commission pointed out that the PPA’s effective date includes the day on which both parties have executed it. The PPA states that both parties shall abide by all the obligations that are to be performed by ASSPL starting on the date of execution of the PPA, the regulator further added.
The PPA was signed by both parties on April 4, 2022, according to the document provided to the Commission. However, the regular noted that, because MSEDCL took longer than expected to deliver the signed PPA, ASSPL was unable to start fulfilling its responsibilities.
It, therefore, specified that the PPA’s effective date be May 6, 2022, the day on which MSEDCL gave it to ASSPL, and adjustments to the due dates for fulfilling the different responsibilities will be made consequently.