DERC Directs TPREL To Seek SCOD Extension For 510 MW Wind-Solar Hybrid Project Due To Transmission Delays

The Delhi Electricity Regulatory Commission (DERC) recently handled a petition from Tata Power Renewable Energy Ltd. (TPREL), which sought an extension for the Scheduled Commercial Operation Date (SCOD) of a 510 MW Wind-Solar Hybrid project. The request arose due to delays in the readiness of Inter-State Transmission System (ISTS) substations, specifically Koppal-II and Gadag-II, which are crucial for power evacuation.

TPREL entered into a Power Purchase Agreement (PPA) with Tata Power Delhi Distribution Ltd. (TPDDL) on March 7, 2023. According to the PPA, the SCOD was set for March 7, 2025, two years from the effective date. However, due to delays primarily attributed to the Central Transmission Utility of India Ltd. (CTUIL), the project faced setbacks. The delays were linked to the transfer and development timeline of the ISTS substations, which were initially expected to be operational by September 2025 but are now anticipated to be ready by December 2025.

TPREL argued that the delays were beyond its control and solely the responsibility of CTUIL. They highlighted that despite their compliance with all necessary formalities, the project could not proceed as planned due to the delayed infrastructure. Consequently, TPREL requested that the SCOD be extended to 60 days after the substations are ready.

TPDDL, the respondent, acknowledged the delays but stressed that any extension should be granted only if TPREL met all required conditions. These conditions included adherence to the procedures outlined by the Central Electricity Regulatory Commission (CERC) and demonstrating that the delays were indeed beyond TPREL’s control.

The Commission’s analysis recognized the impact of the delay on the tariff. The postponement means that consumers in Delhi will be deprived of competitively priced green power. Furthermore, there are financial implications related to the waiver of Inter-State Transmission Charges, which could be lost if the project is delayed beyond June 30, 2025.

The Commission also referenced recent orders from the Ministry of Power (MoP), which allow for the extension of the SCOD under specific circumstances, such as delays caused by transmission providers. The order advised TPREL to approach the Ministry of New and Renewable Energy (MNRE) to seek an extension due to the delays attributable to CTUIL. If granted, this extension would allow the SCOD to be adjusted accordingly without penalizing TPREL for the delays.

The DERC disposed of the petition by directing TPREL to seek the necessary approvals from MNRE for the SCOD extension and advising TPDDL to update the PPA based on the revised SCOD once approved. This decision reflects the Commission’s acknowledgment of the challenges faced by renewable energy projects due to infrastructure delays and its commitment to ensuring that such projects are not unduly penalized for factors beyond their control.