Power Crisis, RPO Drives Haryana Regulator to Approve 1100 MW of Renewable Purchases

By Prasanna Singh/ Updated On Wed, Jun 15th, 2022

Highlights :

Comprising 300 MW of Hydro purchases at Rs 5.45/kWh from NTPC,
and 800 MW solar and wind energy from SECI at Rs 2.24 and Rs 2.42 respectively, the purchase approvals were expected.

Power Crisis, RPO Drives Haryana Regulator to Approve 1100 MW of Renewable Purchases

The Haryana Electricity Regulatory commission, in two orders within days of each other, has approved total RE purchases of 1100 MW for the state. Driven by both the power crisis being experienced by the state as well as the pending and future RPO obligations, the state regulator did make the Hydro power purchase from NTPC Vidyut Vyapar Nigam subject to Merit order despatch, thanks to its higher rate of Rs 5.45/kWh. This however is still much lower than the proce the state discoms have had to pay to procure power at the power exchanges recently.

Haryana faced a power deficit in the months of April and May 2022 to the tune of 2570 MW and 1786 MW quantum energy respectively.

The 300 MW power on short term basis is due from Kameng Hydro Power Station located at Kimi, West Kameng District, Arunachal Pradesh through NTPC Vidyut Vyapar Nigam Limited (NVVN) at a tariff of Rs. 5.45/kWh applicable at generator ex-bus including a trading margin for a period of 9 months up till March, 2023.

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The approval of the Draft Power Supply Agreement (PSA) for procurement of 800 MW ISTS connected Wind Solar Hybrid Power under Tranche IV scheme of Solar Energy Corporation of India Limited (SECI) is at a levellized tariff of Rs. 2.34/kWh for 700 MW and Rs. 2.35/kWh for 100 MW plus a trading margin of Rs. 0.07/kWh for a period of 25 years. Originally the HPPC had requested SECI for 1200 MW, however, by the time it gave its approval, SECI informed it that only 800 MW was available.

The Solar Hybrid Power comes from SECI’s under ISTS (Tranche-IV) Scheme. After adding SECI’s trading margins of 7 paise, the applicable tariff including the trading margin under the PSA will be Rs. 2.41/kwh for 700 MW and Rs. 2.42/kwh for 100 MW, as it is a composite scheme.

Earlier the Commission in its ARR order dated 30.03.2021 had approved 1088.1 MUs and 2901.8 MUs from Non-solar and Solar sources for compliance of RPO for the FY 2021-22. The Commission has allowed carrying forward the RPO backlog of FY 2020-21 to FY 2021-22. The Commission in its order has mentioned that the RPO backlog for the FY 2020-21 shall form part of the total power purchase volume approved for the FY 2021-22 and set off against the costliest power in the merit order.