Delhi Commission Approves Power Sale Agreement Between SECI and Tata Power

The power sale agreement is for 20 MW of Solar PV


The Delhi Electricity Regulatory Commission (DERC) has approved a power sale agreement (PSA) between Solar Energy Corporation of India (SECI) and Tata Power Delhi Distribution Limited (TPDDL) for procurement of power from 20 MW of solar photovoltaic (PV) projects. The procurement is towards meeting TPDDL’s renewable purchase obligation.

TPDDL had petitioned the DERC to adopt a tariff of ₹5.50 (~$0.078)/kWh including the trading margin of ₹0.05 (~$0.00071)/kWh under Section 63 of the Electricity Act, 2003. The petition was also made for approval of procurement of this power capacity and the PSA between SECI and TPDDL.

While examining the petition and submissions made therein, the DERC observed that SECI was designated as the nodal agency responsible for conducting the bidding process and it has followed the guidelines issued by Ministry of New and Renewable Energy (MNRE) to set up grid-connected solar PV projects.

DERC also pointed that as the generation and sale of power will take place in more than one state, the jurisdiction to determine the tariff lies with Central Electricity Regulatory Commission (CERC) under section 79(1) (b) of the Electricity Act, 2003.

DERC stated that it could not determine the tariff for procuring solar power from SECI implemented project. TPDDL must approach CERC instead.

The DERC asked the parties to modify terms and conditions of PSA. DERC has asked the petitioner to include a clause that the applicable tariff for solar PV power will be the maximum possible fixed tariff as adopted by the concerned regulatory commission (CERC in this case) plus a trading margin of ₹0.05 (~$0.00071)/kWh fixed for the entire term of this agreement. The buying utility will make the tariff payments to SECI as per the provisions of this agreement.

DERC has ordered TPDDL to file a copy of the duly modified and signed PSA within a month.

In January 2019, DERC approved two PSAs between BSES Rajdhani Power Limited (BRPL) and PTC India Ltd for the procurement of 100 MW of wind power.

Image credit: Tata Power