HPPC Ordered to Follow Latest MNRE Competitive Bidding Guidelines

HPPC has been ordered to follow the latest competitive bidding guidelines issued by MNRE for procurement of power from solar power projects.

The Haryana Power Purchase Centre (HPPC) has been ordered by the Haryana Electricity Regulatory Commission (HERC) to follow the latest competitive bidding guidelines issued by the Ministry of New and Renewable Energy (MNRE) for procurement of power from solar PV power projects.

The commission issued the order in response to petitions filed by ACME Solar and Tepsol Green Energy.

ACME Solar had filed a petition with the commission to order HPPC to offer ACME preferential treatment as it had participated in the initial auction that had been proposed by HPPC to procure solar in 2015. In that auction, ACME had been issued a letter of intent (LoI) for 140 MW of solar at a tariff of Rs 5per unit. However, later HPPC had nullified the tender and its results and issued a new tender for procurement of 300 MW of solar power.

In response to the petition, HERC observed that if preferential treatment is provided, it will adversely affect the competitive bidding process and will be against the principles of reverse auction. But, keeping in mind that ACME had shown initial interest in developing a solar PV project and supplying power to HPPC, the commission ordered that the firm be awarded 140 MW of solar power if it agrees to match the lowest (L1) tariff discovered in the auction conducted by HPPC to procure 300 MW of solar to meet renewable purchase obligations (RPO).

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Tepsol Green Energy had petitioned the commission seeking amendments regarding the timeline for acquisition of land, attaining financial closure and commissioning schedule in the Request for Proposal (RfP) document and in the draft power purchase agreement for the procurement of 300 MW solar power.

HERC in its order said that the RfP and the draft PPA have to abide by the guidelines for competitive bidding framed by Ministry of Power along with its amendments from time to time, prevalent on the date of floating RfP unless it (HERC) approves deviations.

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