Empowering Solar Energy: Regulatory Approval for 1,000 kW Solar Power Project in Himachal Pradesh

The Himachal Pradesh State Electricity Board Ltd. and M/s Anuradha Solar Power Project jointly submitted a petition to the Himachal Pradesh Electricity Regulatory Commission for the approval of a Power Purchase Agreement (PPA) regarding the Anuradha Solar Power Project, a 1,000 kW Solar PV Project. This project, initiated following an allotment by HIMURJA, is located in Village Gurha, Tehsil Jawali, District Kangra, Himachal Pradesh. The completion and commissioning of this project are scheduled for 16.05.2024.

The petition, filed under the provisions of Section 86(1)(b) of the Electricity Act 2003, sought to formalize the terms under which electricity generated by this solar project would be bought by the HP State Electricity Board. This request aligns with the state’s policy to support solar power projects by guaranteeing purchase agreements at predefined tariffs.

The commission, having reviewed the petition alongside the relevant documents and affidavits, noted that the connection agreement for the project had already been signed, detailing the interconnection points and the applicable protection arrangements. Furthermore, it recognized the tariff determination for solar projects made on 04.11.2023, which set the generic levelized tariff for solar PV projects for the fiscal year 2023-24. For projects like the Anuradha Solar Power Project, situated in rural areas and not exceeding 1 MW capacity, a tariff of ₹3.65 per kWh was applicable, subject to adjustments based on any capital subsidies received.

The project’s eligibility for this tariff rate, along with its compliance with other stipulated conditions, such as the application for and notification of any subsidies, and the execution of the PPA incorporating these details, was confirmed. The commission mandated several conditions for the approval of the PPA. These included the adjustment of the tariff based on received subsidies, the confirmation that the project is located in a rural area, the inclusion of the connection agreement within the PPA, and the stipulation that any delay beyond the Scheduled Commercial Operation Date (SCOD) might result in the application of a reduced tariff rate.

The order also outlined modifications to the draft PPA, including the deletion and amendment of certain clauses to align with the connection agreement and regulatory requirements. The project was directed to adhere to the scheduled dates for synchronization and commercial operation, with the caution that failure to meet these timelines could lead to adjustments in the applicable tariff.

The Commission’s decision underscores its support for renewable energy projects by ensuring that solar power projects like the Anuradha Solar Power Project receive the necessary regulatory approvals and guarantees for their energy output. This approach facilitates the growth of renewable energy infrastructure within the state, aligning with broader environmental and energy policy goals.

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