Haryana Commission Approves Power Purchase Agreement for 3 MW Biomass with Deviations

The HERC ordered the HPPC to follow the provision that normative auxiliary consumption is taken at 8.5%; HPPC had proposed 10%


The Haryana Electricity Regulatory Commission (HERC) has issued an order approving the power purchase agreements (PPAs) for 3 MW of biomass procurement by Haryana Power Purchase Center (HPPC).

HPPC had petitioned the HERC to approve the draft PPA to be signed with RSL Distilleries Pvt Ltd., to purchase 3 MW of power from 5.55 MW biomass cogeneration unit at village Chandrao, Tehsil Indri, District Karnal, Haryana.

In its submissions, the HPPC argued that it had prepared the draft PPA based on similar PPAs available on record. While going through the submissions made by the parties, the HERC observed that the PPAs referred by the HPPC was approved before the notification of HERC (Terms and Conditions for determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2017.

After the notification of the bid regulations, no term of the draft PPA should be in contradiction of the same, said the HERC.

The HERC ordered the HPPC to follow the provision that normative auxiliary consumption is taken at 8.5%; HPPC had proposed 10%. The HERC has approved the PPA and asked HPPC to include the deviation mentioned by it in the PPA document.

HERC has also asked HPPC to submit a signed copy of the PPA for the record of the commission within two weeks from the date of this order.

In January 2019, the HERC approved PPAs for a total of 49.8 MW of paddy straw biomass-based power projects signed between the developers and HPPC. In July 2018,  the HERC issued an order amending the terms and conditions for tariff determinations from renewable energy sources, renewable purchase obligations, and renewable energy certificates.

In August 2018, the Ministry of New and Renewable Energy (MNRE) invited Expression of Interest (EoI) to assess the potential of biomass power and bagasse cogeneration in India.

Then towards the end of 2018,  the ministry amended two clauses in the policy to support the promotion of biomass-based cogeneration projects in sugar mills and other industries in the country up to March 2020.

Image credit: praj.net

Saumy Prateek Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.