CERC Orders Tariff Settlement for a 1.5 GW Hydro Project in Himachal Pradesh
Fixes total capital cost of the project at ₹87.7 billion
The Central Electricity Regulatory Commission(CERC) has settled a dispute regarding the tariff determination of a hydro project in Himachal Pradesh.
The CERC was hearing a petition filed by Sutlej Jal Vidyut Nigam Limited (SJVNL) for a 1,500 MW (6 units of 250 MW each) Nathpa Jhakri hydro-electric power project for the revision of tariff for the period between April 1, 2009 and March 31, 2014, including truing up of tariff determined by the commission’s order dated June, 20, 2014.
The commission has asked the petitioner to calculate the difference between the annual fixed charges it has already recovered, and the charges determined by the commission’s current order, and then settle it as per the 2009 Tariff Regulations.
The generating station, located in the state of Himachal Pradesh, has been constructed by the petitioner, a joint venture between the government of India and government of Himachal Pradesh, as a run-of-river project with pondage.
The respondents in the case were: Punjab State Power Corporation Limited, Haryana Power Purchase Centre, Delhi Transco Limited, Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited, BSES Yamuna Power Limited, Ajmer Vidyut Vitaran Nigam Limited, Jaipur Vidyut Vitaran Nigam Limited, Government of Himachal Pradesh, Uttaranchal Power Corporation Limited, Himachal Pradesh State Electricity Board Limited, Jammu and Kashmir Power Department, Power Department Union Territory of Chandigarh, and the Uttar Pradesh Power Corporation Limited.
In the order, the CERC stated that the petitioner is entitled to claim interest on working capital in terms of Regulation 18 of the 2009 Tariff Regulations.
It has fixed the total capital cost for 2013-2014 at ₹87.7 billion ($1.26 billion), and it has also allowed a total additional capitalization for 2013- 2014 for the project at ₹195.5 million ($2.8 million).
In a recent review petition, the Haryana Power Purchase Center (HPPC), had asked the Haryana Electricity Regulatory Commission to review its order in which it had allowed the deletion of an exit clause in the power purchase agreement. The petition was for a 36 MW hydropower project which HPPC purchased power from. The project is owned by IA Hydro Energy Pvt. Ltd. (IAHEPL), Mercom had reported.
Recently, Large hydro power (LHP) projects were back in the limelight in India, thanks to the recent notification by the Ministry of Power in which such projects were reclassified as renewables. The Cabinet Committee on Economic Affairs recently approved the reclassification, endorsing a slew of economic benefits and incentives for the sector.
It is noteworthy that around 10 GW of generation assets with debts are already before the tribunals, and a large chunk of the remaining stressed assets is also set to take the insolvency route.
Mercom had reported earlier that with the inclusion of hydropower, renewable energy would account for almost 35% of India’s total installed power capacity and it would make it much easier for the country to meet the Paris Climate Agreement goal of generating 40% of its electricity from renewable energy sources by 2030.
Soumik is a staff reporter at Mercom India. Prior to joining Mercom, Soumik was a correspondent for UNI, New Delhi covering the Northeast region for seven years. He has also worked as an Asia Correspondent for Washington DC-based Hundred Reporters. He has contributed as a freelancer to several national and international digital publications with a focus on data-based investigative stories on environmental corruption, hydro power projects, energy transition and the circular economy. Soumik is an Economics graduate from Scottish Church College, Calcutta University.