CERC Quashes Avaada’s Plea for Extension of LTA Operationalisation Date

CERC Approves Trading Margin of Rs.0.07/kWh in SECI's PSAs with Distribution Firms

The Petitioners, Avaada Energy Private Limited (AEPL) and Avaada Sustainable RJ Project Private Limited (ASRJPPL), Petitioner have filed petitions against Central Transmission Utility of India Limited (CTUIL) to extend the start date of Long Term Access (LTA) granted to AEPL from 23.8.2021 to 12.5.2022.

AEPL has stated that as per its letter dated 10.1.2022, it requested CTUIL, for extension of the date of LTA operationalization for the 300 MW capacity upto 12.5.2022, which is the the extended Scheduled Commercial Operation Date (SCOD) of its solar power project. However, it received no response from CTUIL.

In its petitions, AEPL has sought the following:

1) Extension of the start date of LTA, as anticipated by AEPL’s letter as on 10.1.2022.

2) The passing of an interim order that restrains CTUIL from any coercive and precipitative measures, which may include levying any penalty/ charges for the non-operationalisation of 150 MW of the total 300 MW, on the premise of the start date of LTA as 23.04.2022.

Background

SECI had conducted competitive bidding for a 300 MW solar power project at Bikaner, Rajasthan, for which, AEPL emerged as the successful bidder. Further to this, AEPL has set up the project  through its Special Purpose Vehicle, ASRJPPL.

AEPL and CTUIL entered into a Transmission Agreement for connectivity on 7. 7.2020 and aupplementary agreement dated 12.2.2021. ASRJPPL and SECI entered into a Power Purchase Agreement on 8.6.2020 (‘PPA’) for the supply of the contracted capacity of 300 MW. The SCOD of the same was 11.11.2021.

Force Majeure

The MNRE termed the COVID-19 pandemic and the resulting disruptions in supply chain as ‘force majeure’. Based on requests issued by developers of renewable energy, the Ministry granted extension of 5 months to RE Projects under implementation as on the date of the lockdown, i.e. 25.3.2020.

With the second wave of the pandemic, SECI vide its letter dated 5.11.2020 extended the SCOD for completion of full 300 MW capacity till 25.2.2022.

MNRE  decided that SCOD extension be granted on entire period of disruption on account of second surge of COVID-19, that is, 1.4.2021 to 15.6.2021, following which, SECI vide its letter dated 23. 8.2021 extended the SCOD till 12.5.2022.

AEPL’s Request for SCOD Extension 

Basis the order dated, AEPL requested CTUIL to extend the LTA operationalisation date up to
12.5.2022. CTUIL, however, did not respond to this.

Part commissioning of  150 MW capacity was certified by SECI, the first 100 MW being  certified on 14.1.2022 and the other 50 MW on 7.2.2022.

CERC Regulation 

As per a regulation of the Central Electricity Regulatory Commission (CERC) (‘Solar Power Projects’ awarded through competitive bidding process, having commercial operation declared during period 13.2.2018 to 31.12.2022, are not liable to pay transmission charges and losses.

CTUIL’s Claim

As CTUIL did not extend the start date of LTA, it appears that CTUIL intends to claim transmission
charges/ losses from the petitioners. However, the SCOD of the Project is within 31.12.2022, with 150 MW of 300 MW already commissioned and operationalised. Thus, the petitioner is not liable to pay any charges.

CERC’s Order

1)AEPL, in its letter dated 10.1.2022, has requested CTUIL to extend the date of operationalisation of LTA in light of MoP’s direction dated 15.1.2021. However, as per its regulation, CERC does not provide for extension of the date of LTA operationalization.

2) The CERC has also rejected the contention that ‘Solar Power Projects’ awarded through competitive bidding process, with SCOD declared during period 13.2.2018 to 31.12.2022, are not liable for payment of transmission charges and losses.