APTEL Asks TANGEDCO to Reimburse Solar Developers for Excess Energy Demand

The Appellate Tribunal For Electricity (Aptel) has asked The Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) to reimburse solar power developers for excess energy purchased from them exceeding the capacity utilization factor (CUF) of 19%. The said solar power developers include Crescent Power Limited, B.S. Apparel and Ranergy Solutions Pvt. Ltd.

Along with tariff payments, APTEL pegged the compensation at 75% of the tariff basis the PPAs with solar developers. This is as per the directives of the mechanism put in place by the Union Ministry of Power.

The three solar power developers had filed the appeal individually as well as via the National Solar Energy Federation of India (NSEFI) before APTEL. They were looking to set aside a circular issued by TANGEDCO as of June 14, 2017. The circular prohibited surplus payment for surplus generation exceeding the capacity utilization factor CUF of 19%, which is generally the norm. This which was quashed by the Tamil Nadu Electricity Regulatory Commission (TNERC).

APTEL however noted that in the purchase agreements and the solar tariff orders of TNERC between the years of 2014 and 2019, there is no restriction on injection of power exceeding the normative CUF.

The signatories of the contract agreed on the sale of quantum of power pegged at ₹7.01 per unit. As per the mandate of the energy purchase agreements, solar power shall be evacuated to the maximum extent, subject to grid stability.

APTEL also noted additionally that the TANGEDCO circular is not setting a good precedent in terms of law and said that it be set aside. That apart, it also dismissed TNERC’s order rejecting appeals. Tangedco has been told by APTEL to make payments within six months’ time from its order, dated November 28.