JSERC Approves PPA For Procurement of 10 MW Solar Power

The state commission of Jharkhand has approved a PPA signed between JBVNL and SECI, subject to approval by the CERC.

The Jharkhand State Electricity Regulatory Commission (JSERC) acting on a petition filed by the Jharkhand Bijli Vitran Nigam Limited (JBVNL) has approved the Power Purchase Agreement (PPA) for procurement of 10 MW solar power.

JBVNL had petitioned the state commission seeking approval of the PPA it had signed with SECI for the procurement of 10 MW of solar PV power. It also requested the commission to adopt the rate of ₹5.50/ kWh for a period of 25 years for the agreement.

After considering all the submissions made by the parties, the commission noted that it is incumbent upon all the obligated entities of the State, to take sincere efforts to procure renewable energy from different sources to fulfil their RPO target. And that hence, the decision of the JBVNL to procure 10 MW solar power is in line to its power procurement plan to meet RPO.

In its order, the state commission observed that since SECI is procuring power from multiple sources and supplying to JBVNL, the commission has limited authority to allow it to purchase or not to purchase power at the discovered rate from SECI through the PPA for 25 years. Since, SECI has its license issued by Central Electricity Regulatory Commission (CERC) and as such the disputes between the signatories, if any, would be adjudicated by CERC. According to JSERC, the CERC has the complete authority to determine such rates.

The state commission approved the proposal for the procurement of 10 MW of solar power from SECI at the proposed tariff and trading margin for 25 years, subject to the adoption of the discovered tariff by the CERC.

The Commission also observed that since the JBVNL is fully aware of the need for the approval of the PPA by the Commission, in future, no PPA should be acted upon without the approval of the Commission.

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