The Haryana Electricity Regulatory Commission (HERC) has approved the procurement of 126.8 MW of solar power under the PM-KUSUM Scheme, marking a notable step toward Haryana’s renewable energy targets. At the same time, the Commission issued a clear warning to state agencies over significant administrative delays in seeking approvals.
The proposal was submitted by the Haryana Power Purchase Centre (HPPC), which acts on behalf of the state’s distribution companies, UHBVN and DHBVN. HPPC sought approval for 74 Power Purchase Agreements (PPAs) linked to small solar projects. Each project has a capacity of up to 2 MW and includes decentralized, ground-mounted, or stilt-mounted installations.
These projects fall under Component-A of the PM-KUSUM programme, which aims to enable farmers and rural entrepreneurs to generate solar power using barren or unused land. By doing so, the scheme supports additional income generation while also contributing to clean energy expansion in rural areas.
The Commission has allowed a levelized tariff of Rs. 3.11 per kWh for these projects, a rate that was originally determined in 2019. This ensures long-term revenue stability for developers and farmers over a 25-year period. The initiative also improves efficiency in power supply, as most of the plants are located within a 5 km radius of substations, reducing transmission losses and lowering infrastructure costs. Additionally, the projects will help Haryana meet its Renewable Purchase Obligation (RPO) targets and reduce carbon emissions.
However, the process faced several challenges. HPPC informed the Commission that initial efforts to attract developers through Expressions of Interest did not receive adequate response. To overcome this, authorities later allowed walk-in applications to increase participation from farmers and small developers. There were also logistical difficulties in collecting documents from multiple stakeholders across rural districts.
A major concern raised by the Commission was the delay in seeking approval. Some of the PPAs were signed as early as 2020, but approval was sought only recently, nearly six years later. The HERC bench, led by Chairman Nand Lal Sharma along with Members Mukesh Garg and Shiv Kumar, expressed dissatisfaction over this “ex-post facto” approach.
The Commission clearly stated that utilities must obtain approval before entering into contractual agreements. It emphasized that such delays are not acceptable under regulatory norms.
Despite these concerns, HERC granted approval as a one-time exception, considering the larger public interest and renewable energy goals. It also issued a strict warning that such practices will not be tolerated in the future. The Commission clarified that any power procured through unapproved PPAs going forward will not be considered as a valid cost while determining consumer electricity tariffs.
This order highlights both progress in renewable energy adoption and the need for stronger regulatory discipline in implementation.
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