The Haryana Electricity Regulatory Commission (HERC) has approved the procurement of solar power by the Haryana Power Purchase Center (HPPC) for a cumulative capacity of 126.8 MW under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program at a levelized tariff of ₹3.11 (~$0.0328)/kWh.

The Commission clarified that the approval is an exception and should not be treated as a precedent, and any future power purchase agreements (PPAs) not submitted for approval in time will not be considered for inclusion in power purchase costs for tariff determination.

Background

The petition was filed by HPPC seeking approval for the long-term procurement of solar power for 25 years from grid-connected solar projects with capacities up to 2 MW under Component A of the PM-KUSUM program.

The program enables farmers and developers to set up solar projects and sell power to distribution companies, supported by central financial assistance to reduce capital costs.

Haryana was allocated 158 MW under the program, and HPPC signed 74 PPAs totaling 126.8 MW between 2020 and 2025.

HPPC argued that the procurement would support renewable purchase obligations, reduce transmission losses through decentralized generation, and create additional income opportunities for farmers.

It also submitted that the delay in filing the petition was due to procedural requirements, multiple stakeholders, and the timelines associated with the program.

Commission’s Analysis

The Commission observed that several PPAs were signed as early as August 2020 and that HPPC approached it for approval after nearly six years’ delay.

It emphasized that the distribution licensees must obtain prior regulatory approval before entering into PPAs, a requirement that was not met in this case.

HERC noted that all future applications seeking approval for long-term power procurement should be submitted in conformity with the license conditions and the guidelines issued by the Commission.

It added that costs from unapproved arrangements will not be included in tariff calculations.

Despite these concerns, the Commission granted approval in this instance, considering the objectives of the PM-KUSUM program and stakeholder interests, and stated that such a relaxation will not be repeated.

Recently, HERC approved HPPC’s revised proposal to procure short-term round-the-clock power of 390 MW in June, 687 MW in July, and 200 MW in August 2026 to manage peak summer demand.

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