DERC Approves PSA Between SECI and Tata Power-DDL For Sale of 50 MW Wind Power

The Delhi Electricity Regulatory Commission (DERC) has approved the Power Sale Agreement (PSA) between the Solar Energy Corporation of India (SECI)  and Tata Power Delhi Distribution Limited (TPDDL) for the sale of 50 MW of wind power.

The order was passed after TPDDL had petitioned the commission to approve the PSA and adopt a tariff of Rs 2.45/kWh plus the trading margin of Rs 0.07/kWh for 50 MW wind power. Tata Power had requested for this tariff until the commissioning of total SECI-interstate transmission system (ISTS) wind power projects, after which the tariff would be Rs 2.52/kWh for the remaining duration of the power purchase agreement (PPA). This procurement of power will be utilised for meeting TPDDL’s renewable purchase obligation.

DERC observed that SECI was designated as the nodal agency responsible for conducting the bidding process and it has duly followed the guidelines issued by the Ministry of New and Renewable Energy (MNRE) to set up grid-connected wind power projects.

The commission also pointed that since the generation and sale of power will take place in more than one state, the jurisdiction to determine the tariff lies with the Central Electricity Regulatory Commission (CERC) under section 79(1) (b) of the Electricity Act, 2003. The commission stated that it could not determine the tariff for procuring solar power from SECI’s implemented the project, and that TPDDL would have to approach CERC instead.

DERC further ordered the petitioner to make the following modifications to the terms and conditions of the PSA related to the applicable tariff;

1. The buying entity shall pay maximum possible fixed tariff as adopted by the CERC plus the trading margin of Rs 0.07/kWh fixed up to commissioning of the cumulative awarded capacity by SECI under the RfS.

2. The weighted average tariff as approved by CERC plus the trading margin of Rs 0.07/kWh fixed shall be applicable upon commissioning of the cumulative awarded capacity by SECI under RfS for the balance term of the agreement for the energy supplied as per provisions of the agreement.

“The PSA dated 28.03.2018 between SECI and the Petitioner is hereby approved subject to the modifications as indicated in para 5 above. The Petitioner is directed to file a copy of duly signed modified PSA to this Commission within a month. The prayer to adopt the tariff of Rs. 2.45/kWh under Section 63 of the Electricity Act, 2003, cannot be granted by this Commission being beyond its jurisdiction,” the DERC said in its order.

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