GERC Reaffirms Right Of Developers To Replace Damaged Modules

GERC Reaffirms Right Of Developers To Replace Damaged Modules

The Gujarat Electricity Regulatory Commission (GERC) in its latest order said that the solar generators are entitled to replace their older damaged solar panels with new modules by abiding with the committed CUF (Capacity Utilisation Factor). The order of the state power regulator came to the light while hearing a petition of solar power generator who has signed a PPA with GUVNL.

The petitioner, Konark Gujarat PV had commissioned a 5 MW of solar project at Shivlakha village in the Kachcha district of Gujarat. It signed a PPA with GUVNL on December 9, 2010 for 25 years. The agreed tariff for the same was Rs 15 per unit.

The solar project developer in 2020 informed GUVNL that 4363 solar panels had developed anomalies and were not generating expected power from the plant. It said that around 56% of their modules were either damaged or deteriorated.

With revised estimates and testing, the generator on February 4, 2021 said that a total of 13,726 modules having a total 2829260 Wp were damaged or deteriorated and needed replacement. On the other hand, GUVNl said that as per their site visit only 765 modules were found to be damaged with a capacity of 0.1577 MW.

GUVNL, in its response told the GERC that the installation of new panels might be cheaper and would allow a generator to claim higher tariff. It also said that there was no provision in the PPA or orders or regulations of the Commission regarding replacement of damaged solar panels during the life of the project. It said that as per the PPA, the petition was responsible for operation and maintenance of the project through the life of the PPA.

GUVNL said that there could be genuine requirement to replace damaged solar panels and equipment in order to enable them to fulfil their obligations under the PPA. “It is, however, not open to the petitioner for replacing the solar panel to increase the production capacity and thereby increase the quantum of generation over and above what they would have been able to generate considering the contract capacity as per the PPA and take advantage of higher tariff,” it said.

The GERC, however, termed the actions of GUVNL ‘illegal” and “arbitrary”. “The communication dated 28.03.2019 issued by the Respondent with regard to imposition of “Base CUF” and limiting the tariff/ cost of generation payable to “Base CUF” only is illegal, arbitrary. The Petitioner is eligible to generate  and inject the energy from its solar power plant of 5 MW capacity and supply the energy generated from  the plant to the Respondent to the limit of 20% CUF,” the GERC order said.

Similar cases

Earlier, in July 2023, GERC had also withheld the right of the solar power generators to replace damaged and defective solar panels which were affected by cyclones. This was related to the case of Jai Hinid Project Limited which had a 5 MW of solar plant at Patan in Gujarat. In the case, GUVNL allowed partial replacement of the panels and mandated the generator to maintain the base CUF.

In another case in February 2023, GERC had allowed only interim relief on the replacement of solar modules for old solar projects. The case was to Astonfield Solar (Gujarat) Private Limited. It has signed PPAs with GUVNL at a rate of Rs 9.98 per unit for the first 12 years and Rs 7 per unit for the next 13 years. In many of these cases, the initial tariffs are much higher than the current available solar tariffs which lie anywhere close to Rs 2-Rs 3 per unit.