NSEFI Welcomes APTEL Judgement Outlawing PPA Curtailment

The National Solar Energy Federation of India (NSEFI) has welcomed the judgement of Appellate Tribunal For Electricity (APTEL) in the matter of “deemed generation” filed by the NSEFI on the behalf of its members against the Tamil Nadu Electricity Regulatory Commission’s (TNERC) order passed in March 2019, denying the said deemed generation.

NSEFI is a non-profit organization with the objective of solar power development. It is an umbrella organisation representing solar energy companies active along the whole photovoltaic value chain, project developers, manufacturers, engineering companies, financing institutions and other stakeholders.

APTEL, in its judgement, has allowed compensation at 75% PPA tariff along with 9% interest on curtailment for reasons other than “grid security.”

Speaking on this judgement NSEFI CEO Subrahmanyam Pulipaka said, “This is a landmark judgement by Hon’ble APTEL. This will go a long way in reinstating confidence in the entire Renewable Energy sector and will hold utilities and SLDCs accountable for curtailment.”

The key highlights of APTEL’s judgement are as follows:

• “For the period of 01.03.2017 to 30.06.2017, the respondents [TNERC, MNRE, etc.] shall pay compensation for 1080 blocks considered by Power System Operation Corporation (POSOCO), during which the curtailment instructions were issued for reasons other than grid security, at the rate of 75% of PPA tariff per unit along with 9% interest within 60 days from the date of this order. Both SLDC & DISCOM [TNERC] shall jointly pay these amounts. The computation shall be made separately for individual members of the Appellant Association based on the curtailment period/ blocks falling in 1080 blocks.
• APTEL also ordered that for future curtailments, they have to compensate curtailment at full PPA tariff.
• POSOCO shall carry out similar exercise for the period up to 31.10.2020 on the same lines and submit report to Respondent Commission within 3 months. Tamil Nadu SLDC and Appellant are directed to submit details to POSOCO. Based on POSOCO report, State Commission shall allow compensation for the backed down energy at the rate of 75% of the PPA tariff per unit.
• APTEL has also pronounced that these directions are issued to all the SERCs, DISCOMs and SLDCs and directed the registrar to circulate a copy of this order to including MNRE and MoP.”