Haryana Electricity Regulatory Commission Determines Tariff for Solar PV Project

M/s. Greenyana Solar Pvt. Ltd. has petitioned the Haryana Electricity Regulatory Commission (HERC) seeking the determination of tariffs for its 10.72 MW Solar PV project in Kuranganwali, Sirsa District, Haryana. The company’s petition underlines the need for project-specific tariff determination, emphasizing the importance of providing a detailed breakdown of the project’s capital costs, including land lease agreements and other pertinent financial details.

The petitioner requested a tariff of ₹4.46/kWh, citing various justifications and providing supporting documentation such as the Detailed Project Report (DPR), financial statements, and invoices. However, the Haryana Power Purchase Centre (HPPC) contested this proposed tariff, highlighting a pre-existing Power Purchase Agreement (PPA) that stipulated a ceiling tariff of ₹2.75/kWh.

The Commission, tasked with assessing the matter, carefully considered the arguments presented by both parties. It noted the evolving landscape of solar power tariffs, highlighting market trends and recent tariff determinations in similar cases. The Commission emphasized the need for tariffs to reflect market realities while ensuring fairness to consumers.

One significant aspect of the discussion revolved around the project’s capital costs. The petitioner claimed a total capital cost of ₹663.14 million, which the Commission scrutinized in detail. It examined the breakdown of costs, including those related to equipment procurement, land acquisition, and operational expenses. The Commission also considered factors like solar module prices, land lease agreements, and operational and maintenance costs.

The Commission highlighted discrepancies in the petitioner’s cost estimations, especially regarding the procurement and installation of solar modules. It noted the need for transparency and accuracy in cost calculations to ensure a fair tariff determination process.

Additionally, the Commission addressed concerns regarding the project’s Capacity Utilization Factor (CUF), a crucial metric in assessing solar power generation efficiency. It scrutinized the CUF estimations provided by the petitioner and emphasized the importance of aligning them with industry standards and regulations.

Furthermore, the Commission evaluated the petitioner’s equity and return on investment (RoE) components, ensuring that the tariff determination process accurately reflected the financial dynamics of the project.

In its final determination, the Commission balanced the interests of all stakeholders involved, including the petitioner, HPPC, and electricity consumers in Haryana. It arrived at a tariff that reflected market realities while accounting for the project’s financial viability and operational parameters. The Commission’s decision underscored the need for transparency, fairness, and adherence to regulatory standards in tariff determination processes. It aimed to strike a balance between incentivizing renewable energy projects and safeguarding the interests of consumers and distribution utilities. This decision marks a significant step in the ongoing evolution of solar power tariff regulations in Haryana, setting a precedent for future projects and tariff determinations in the state’s renewable energy sector.

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