Cochin International Airport And KSEB Reach Agreement On Solar Plant Registration Fee Dispute

In a recent development, Cochin International Airport Limited (CIAL) filed a petition seeking a final order (OP 18/2020) related to Petition No. 03/2017. The petition urged a decision on the remaining 20% of the registration fee, amounting to ₹1.20 crores, paid to Kerala State Electricity Board Ltd (KSEB Ltd) for securing grid connectivity for its 12 MWp Solar PV Plant.

The background of the case involves CIAL filing Petition No. 03/2017 on 15-03-2017, seeking instructions for KSEB Ltd. The Kerala State Electricity Regulatory Commission issued an interim order on 27-04-2017, outlining various directions for compliance. This included the refund of 80% of the registration fee paid by CIAL for grid connectivity of its solar plants.

The recent petition, OP 18/2020, sought a final decision on the remaining 20% of the registration fee. During a hearing on 17-07-2020, CIAL claimed compliance with all previous directives and eligibility for the balance 20% refund. They highlighted their successful commissioning of approximately 38.4 MW solar PV connected to the KSEB grid.

However, KSEB Ltd raised concerns, stating that CIAL had not fulfilled the requirements specified in safety regulations and connectivity regulations for connecting the balance capacity to the state grid. KSEB Ltd pointed out issues with SCADA visibility, distance protection relays, and LILO arrangements.

After a thorough examination, the Commission concluded that CIAL, as an EHT consumer, is a prosumer with a contract demand of 9 MVA and significant solar capacity. The Commission referred to various regulations, including Grid Interactive Solar Regulations 2014, RE Regulations 2015, and RE Regulations 2020, which deal with different aspects of renewable energy installations.

The Commission noted CIAL’s installations of 38.866 MWp solar PV, exceeding its contract demand. CIAL had remitted registration fees, and KSEB Ltd was directed to refund the 80% registration fee for the latest 9.835 MWp capacity. The Commission emphasized that CIAL relies on KSEB grid support for its green energy initiatives and, as per RE Regulations 2020, KSEB Ltd should provide banking facilities for the entire solar PV system.

The dispute between CIAL and KSEB Ltd regarding connectivity, banking, and registration fee refunds for the solar plants was resolved through mutual consensus. KSEB Ltd agreed to provide banking facilities and refund 80% of the registration fee for the newly added solar capacity. The Commission allowed KSEB Ltd to retain 20% of the registration fee for incidental expenses during the solar plants’ lifetime. The Commission disposed of the petition, ordering KSEB Ltd to adhere to the directives for banking facilities and the refund of the registration fee, thus bringing a resolution to the longstanding matter between CIAL and KSEB Ltd.

Please view the document below for more details.