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MERC Approves 60 MW Wind-Solar PPA Withdrawal, Citing High Tariff

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					</table>The Appellate Tribunal for Electricity (<a href="https://aptel.gov.in/" target="_blank" rel="noopener">APTEL</a>) ruled in favor of solar developers who were successful bidders in the tender issued by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) by approving the negotiated tariff of ₹7.02 (~$0.086)/kWh.
The Tribunal took the Uttar Pradesh Electricity Regulatory Commission (UPERC) to task and termed its order to further reduce the negotiated tariff for the developers as arbitrary, unjust, and unlawful.
The Tribunal said there was no reason to reduce the tariff to ₹5.07 (~$0.062)/kWh.
These developers had filed appeals with APTEL seeking parity in terms of tariff with the other successful bidders.
Background
Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) issued a tender in 2015 to procure 215 MW of power from grid-connected solar power projects.
The 15 selected bidders had quoted a 12-year tariff in the range of ₹7.02 (~$0.086)/kWh to ₹8.60 (~$0.11)/kWh.
Adani Green Energy had quoted a capacity of 50 MW at ₹8.44 (~$0.1)/kWh, and Sahastradhara Energy was to develop a 5 MW capacity at ₹8.37 (~$0.1)/kWh tariff.
Later, the state Commission adopted a tariff of ₹7.02 (~$0.086)/kWh for nine bidders.
The two generators entered into power purchase agreements (PPAs) with the Uttar Pradesh Power Corporation (UPPCL) in December 2015 to sell power for 12 years.
However, in 2018, the state commission further reduced the tariff to ₹5.07 (~$0.062)/kWh for Adani and Sahastradhara and four others.
Adani entered into a transmission agreement with the Uttar Pradesh Power Transmission Corporation (UPPTCL) to complete the transmission line and bay within seven and five months, respectively.
But power evacuation was delayed following the delay in the construction of the transmission line due to a lack of sanctioned funds.
Adani requested UPNEDA to extend the scheduled commissioning date from June 1, 2016, to December 1, 2017.
The state Commission ruled that the bid discovered price was high, and there was a need for UPPCL and UPNEDA to engage the selected entities in negotiations over the applicable tariff.
In 2017, after negotiations with the state government, the generators gave their consent for a tariff of ₹7.02 (~$0.086)/kWh.
Later, UPPCL sent a notice to Adani seeking termination of the PPA for failure to supply power to the procurers. The generator clarified the delay in the commencement of the power supply was because of the delay in the construction of the transmission lines.
Subsequently, the Commission proposed a tariff of ₹5.07 (~$0.062)/kW for the remaining six bidders, including Adani and Sahastradhara.
Tribunal&#8217;s Analysis
The Tribunal noted that the delay in the commissioning of the projects was due to a delay in the construction of the transmission lines, and it was not the fault of the generators.
It said negotiations between the parties had resulted in the tariff of ₹7.02 (~$0.086)/kWh but the state Commission’s action in examining its validity and proposing a tariff of ₹5.07 (~$0.062)/kWh was questionable.
Further, it added that there was no obligation on the generator&#8217;s part to commence supply until the evacuation system was made available.
APTEL noted that two generators were on the same footing as the nine bidders, in which the negotiated tariff of ₹7.02 (~$0.086)/kWh was adopted, and the further reduction to ₹5.07 (~$0.062)/kWh was arbitrary, unjust, and unlawful.
In April this year, APTEL <a href="https://mercomindia.com/aptel-rules-favor-solar-developer-2/" target="_blank" rel="noopener">ruled</a> that Walwhan Renewable Energy was entitled to the effective tariff of ₹7.09/kWh and ₹7.01/kWh for two projects of 50 MW each from Bangalore Electricity Supply Company.
Earlier, APTEL <a href="https://mercomindia.com/aptel-rules-favor-solar-developers/" target="_blank" rel="noopener">ruled</a> in favor of three solar developers and said that the developers were entitled to the tariff as per the second tariff order passed by the Bihar Commission and provisions of the PPAs.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.

APTEL Rules in Favor of Solar Developers, Strikes Down Reduction of Tariff

The Uttar Pradesh Electricity Regulatory Commission (<a href="https://www.uperc.org/Contactus.aspx" target="_blank" rel="noopener">UPERC</a>) has approved the part commissioning (14 MW) of a 20 MW solar project. It said that separate wheeling and banking agreements should be signed for each part of the capacity of 14 MW, 4 MW, and 2 MW.
AMP Solar Green Power had filed a petition seeking approval for part commissioning of the 20 MW solar project at Payagpur in Bahraich district of Uttar Pradesh.
Background 
AMP Solar Green Power was to set a 20 MW solar power project to supply the energy generated to its consumers and captive users within the area of supply of Madhyanchal Vidyut Vitran Nigam Limited (<a href="http://www.mvvnl.in/" target="_blank" rel="noopener">MVVNL</a>). The company entered into a power purchase agreement (PPA) with RCCPL Private Limited and Birla Corporation (captive users) for 25 years.
On October 25, 2019, the company applied for a grant of long-term access (LTA) to transfer 14 MW capacity from the Payagpur substation to the Bachhrawan substation and 6 MW capacity from Payagpur substation to Tripula substation. The Uttar Pradesh Power Transmission Company Limited (<a href="https://upenergy.in/upptcl" target="_blank" rel="noopener">UPPTCL</a>) granted LTA to the petitioner’s solar power project. Later, the company entered into a bulk power transmission agreement on February 14, 2020, for transmission of electricity under open access with UPPTCL.
Later the petitioner said that only 13 MW to 14 MW out of the installed capacity of 20 MW was generated because of harsh winter months.
Commission’s Analysis
The Commission agreed that the company could not supply electricity to its consumers despite having signed the PPAs because of weather conditions.
It said that it took a pragmatic view and allowed part commissioning to promote open access to small solar projects in the state.
Further, the Commission added that the developer could declare the commissioning of 4 MW and 2 MW for two other open access consumers as and when it happens.
Regarding the wheeling and banking agreement, the state regulator said that the petitioner could approach Uttar Pradesh Power Corporation Limited (<a href="https://www.upenergy.in/" target="_blank" rel="noopener">UPPCL</a>) to sign the agreement for 14 MW and subsequently separate agreements for the capacity of 4 MW and 2 MW.
In December last year, the Tamil Nadu Electricity Regulatory Commission (TNERC) <a href="https://mercomindia.com/tamil-nadu-regulator-refuses/" target="_blank" rel="noopener">rejected</a> a solar developer’s petition to extend the project’s commissioning date but approved the commissioning of 50 MW out of the total capacity of 100 MW.
Mercom had <a href="https://mercomindia.com/long-term-open-access-customers-uttar-pradesh/" target="_blank" rel="noopener">reported</a> that UPERC had come up with open access regulations in 2019, which gave long-term open access customers the highest priority, followed by the medium-term open access customers and short-term open access customers.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Uttar Pradesh Commission Allows Part Commissioning of a 20 MW Solar Project

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