Haryana Electricity Regulator Approves PPA with Deviations for a 10 MW Solar Project

HERC Directed HPPC to Refrain from Deviations from the Approved PPA’s Terms

November 2, 2018


The Haryana Electricity Regulatory Commission (HERC) has issued an order approving the deviations in the terms of power purchase agreement (PPA) for procurement of power by Haryana Power Purchase Centre (HPPC) from a 10 MW solar photovoltaic (PV) project developed by Haryana Power Generation Corporation (HPGCL).

The HPPC had amended one of the clauses in the PPA. Per the amendment, “Rebate and surcharge mechanism shall be applicable as per the HERC (Terms & Conditions for determination of tariff for generation, Transmission, Wheeling, Distribution & Retail Supply under MYT Framework) MYT Regulation, 2012.”

The HPPC had made another amendment too. Per the second amendment, “HPGCL will maintain generation to achieve a minimum capacity utilization factor (CUF) of 16 percent per year subject to Force Majeure conditions. Failing which the HPGCL will pay the forbearance price of renewable energy certificates (RECs) procured by HPPC due to shortfall of minimum CUF of HPGCL for solar energy. Alternatively, HPGCL may supply RECs to HPPC for balance quantum of energy from market by the end of financial year. Provided for any non-generation because of non-availability of evacuation lines/system, HPGCL will not be penalized because of minimum CUF. For calculating annual CUF, generation based on irradiance level will also be worked out for the period of non-availability of evacuation line.”

The HERC has approved these amendments as they are not prejudicial to the interest of the consumers of the state. HERC has also asked HPPC to refrain from deviations from the terms of the approved PPA, in future, without prior approval of HERC.

HPGCL had commissioned this 10 MW solar PV project at the premises of Panipat Thermal Power Station (PTPS) in Panipat, in November 2016.

We are observing a series of petitions heard by the Regulatory Commissions lately. The Telangana State Electricity Regulatory Commission (TSERC) recently provided respite to the solar power developers in three cases accepting the reasons for project commissioning delay and also extended a partial relief to the developer in the fourth case.

Earlier, the TSERC provided relief to the developers of four grid-connected solar projects in the state, totaling 55 MW. In all the four cases, TSERC accepted the reasons given by the project developers for the delay in the scheduled commissioning dates, scoring a win for developers.

The TSERC orders in these cases are in contrast to a recent order passed by the Karnataka Electricity Regulatory Commission (KERC), which dismissed the petition filed by Marakka Solar Power Project LL.P.  KERC responded that force majeure events did not entitle any relief to the petitioner.