MERC Allows TPSL To Supply Wind Energy From Its Hybrid Plant As A ‘Short-Term Measure’ 

Ember study claimed that the share of wind and solar energy in India touched 9% inn 2022.

The Maharashtra Electricity Regulatory Commission (MERC), in its latest order, allowed TP Saurya Limited (TPSL) to partially supply only wind power from its 300 Megawatt (MW) hybrid Power plants under a separate short-term power supply agreement. 

The development came when the renewable energy developer petitioned to seek its approval. It had earlier signed a PPA with the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to supply renewable energy from solar and wind power from its hybrid projects. 

TPSL won competitive bidding of MSEDCL on May 7, 2021, for the procurement of 300 MW grid-connected wind-solar hybrid power on a long-term basis. MSEDL wanted this to meet its Renewable Purchase Obligations (RPO). 

However, per the PPA with MSEDL, the TPSL was bound to supply solar and wind energy to the discom and was not entitled to supply only one form of renewable energy from its hybrid projects. However, TPSCL, in its petition before the MERC, claimed that as the 100 MW of wind generation capacity was ready before its scheduled commercial date of operations, it wanted to sell the same to the discom (MSEDL) and sought permission for the same.  

TPSCL also offered to sell the same at Rs 2.56 per unit. It had also written to the MSEDCL on the issue to which the latter had also shown interest but asked for the approval of MERC into the matter.

The MERC, in its order, allowed the partial delivery of electricity from only wind energy sources but asked to come into a separate short-term power purchase agreement with the discom not to affect or violate the norms of the long-period PPA signed between them and the discom. The MERC also cited another case where such liberty was given to the renewable generator for the short term. 

“Above ruling is squarely applicable to the present matter. Also, the tariff proposed for such short-term power procurement i.e. Rs. 2.56 P.U. is lower than the recently discovered tariff for Wind Projects. Hence, because such Wind Capacity being commissioned is already contracted with MSEDCL under RE Hybrid PPA dated July 22, 2022, but cannot be commissioned without a corresponding Solar Component, in the interim to utilize such Wind Capacity, the Commission allows MSEDCL to procure such Wind Power by entering into a separate short term PPA with TPSL at a tariff of Rs. 2.56 per unit,” the order of MERC said.