DERC Allows SCOD Extension To Tata Power For Hybrid Project

In some relief for the developer, the Delhi Electricity Regulatory Commission (DERC) allowed Tata Power Renewable Energy an extension for its Karnataka hybrid project. The company is now developing a 510 MW of wind-solar hybrid project in the state.

The order of state power regulator came to the fore after Tata Power Renewable Energy filed a petition before the DERC, seeking an extension. The company sought this extension owing to the delay in the transmission network, required for the project. Interestingly, the responded to the case is Tata Power Distribution Limited, the discom for NDMC areas in Delhi.

The DERC in its order extended the Power Purchase Agreement (PPA) for two months. Earlier, as per the existing PPA Tata Power Renewable was mandated to complete the project between March 7, 2023-March 7, 2025. This was dated from 07.03.2023 to 07.03.2025 to a date corresponding to 60 days from the date of readiness of the ISTS substations Koppal – II and Gadag – II, whichever is later.

After satisfying the conditions laid down under the project, the Central Transmission Utility of India Limited (CTUIL) granted in-principle connectivity to the Petitioner for the 170 MW solar power component on 31.01.2024, with 31.12.2025 as the start date of connectivity.

Given the above, it was established that the Petitioner adhered to the norms laid down for the grant of connectivity and completed the formalities on time.

On the question of delay, the petition mentioned, “The delay in the completion of the ISTS network is solely attributable to CTUIL. TPREL attributed it to an inordinate delay in the transfer of the Special Purpose Vehicle and the bidding process, as well as the increase in the implementation period from 18 months to 24 months. Hence, it has been stated that the delay is beyond the control of the Petitioner and is solely attributable to CTUIL.”

Brief Outline

On 14.10.2020, the Ministry of New and Renewable Energy (MNRE), Government of India (GoI), issued the ‘Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Power from Grid-Connected Wind-Solar Hybrid Projects.’

Accordingly, on 27.07.2022, the Commission approved deviations from the Hybrid Guidelines for the procurement of 255 MW of power from Wind-Solar Hybrid Projects. Later in 2022, the Petitioner participated in the e-reverse auction for RfS and was selected as the successful bidder for the development of a 255 MW Wind-Solar Hybrid Project in the state of Karnataka and the supply of electricity at a tariff of ₹3 per unit.

Further, on 30.12.2022, the Petitioner applied for connectivity for 340 MW of wind and 170 MW of solar power through the LoA route for its substations at Gadag II and Koppal II. Since the date of signing the PPA and subsequently the SCOD were not available when applying for connectivity for the project, the estimated start date of connectivity sought by the Petitioner in its application was 01.04.2025.

On 16.01.2024, the Petitioner informed the Respondent that the commissioning of the project would be delayed beyond the agreed timelines due to delays in the readiness of evacuation infrastructure. Later, on 25.01.2024, the Respondent requested a detailed status report of the project along with the revised date of commissioning, as the Respondent was in the process of planning arrangements for power for FY 2024-25 and FY 2025-26, which was to be furnished before the Commission.

On 05.03.2024, the Petitioner issued a letter to the Respondent requesting an extension of the SCOD of the PPA due to delays in ISTS substation readiness, from March 2025 to December 2025.