Approval Sought For Procurement Of 527 MW RTC Power In Haryana Amid Projected Deficit And Competitive Bidding Process

The petition filed by the Haryana Power Purchase Centre (HPPC) concerns the procurement of 527 MW of Round-The-Clock (RTC) power through a medium-term Power Purchase Agreement (PPA) for five years, beginning on August 1, 2024. This petition, under Sections 86(1)(b) and 63 of the Electricity Act, 2003, seeks approval for the source of power, adoption of the discovered tariff, and approval of the draft PPA.

HPPC, representing the Haryana distribution licensees, forecasts a power deficit in the state over the next five years. To address this, HPPC issued a Notice Inviting tender to procure 500 MW of RTC power through a competitive bidding process. This process, managed on the National e-bidding portal by PFCCL, resulted in four bidders submitting their proposals.

The bids were evaluated, and M/s PTC India Limited emerged as one of the successful bidders, offering 150 MW at the lowest discovered tariff of ₹5.78/kWh at the Haryana Periphery. HPPC argues that this tariff is competitive, especially compared to recent tenders and the higher costs observed in the Indian Energy Exchange (IEX).

Given the rising demand for power in Haryana, particularly during peak seasons like summer and paddy cultivation, and the state’s variable power needs, HPPC believes that securing medium-term power is crucial. The petitioner highlights that reliance solely on short-term power procurement or IEX may be costlier and less reliable.

HPPC has requested the Commission to approve the procurement of this 527 MW RTC power at the discovered tariff, emphasizing that this approach will help meet the state’s growing power demand over the next five years and ensure a stable and affordable power supply.

The Commission, after hearing the arguments and reviewing the submissions, noted that the bids are valid until August 14, 2024, and will consider the approval of the procurement as requested by HPPC.