The Haryana Electricity Regulatory Commission (HERC) has approved Haryana Power Purchase Centre’s (HPPC) procurement of 400 MW firm and dispatchable renewable energy (FDRE) from NHPC through interstate transmission system (ISTS)-connected projects with an energy storage system at a tariff of ₹4.44 (~$0.051)/kWh.

The Commission also approved a trading margin of ₹0.07(~$0.00081)/kWh.

Background

NHPC initiated a tariff-based competitive bidding process in March 2024 to select developers to supply 1,200 MW of FDRE in 2024.

The petitioner, HPPC, held a meeting giving in-principle consent to procure 400 MW of FDRE from NHPC at a tariff of ₹4.44 (~$0.051)/kWh. This approval was subject to HERC approval and the signing of the power sale agreements (PSA) by June 15, 2025, to avail a 50% waiver on ISTS charges for 25 years.

The petitioner approached HERC, requesting approval of the draft PSA that had been signed with NHPC.

It also filed an interlocutory application requesting the petition’s urgent listing, submitting that the Ministry of Power stipulated that ISTS charges will be levied for the solar, wind, and hydro-pumped storage projects and battery energy storage systems commissioned on or before June 2025.

The petitioner also emphasized the importance of this procurement in meeting Haryana’s renewable purchase obligation targets, which are set to increase to 43.33% by the financial year 2030. The project is expected to commence within 24 months of the date of signing the power purchase agreement.

Commission’s Analysis

The Commission acknowledged that HPPC will be able to avail the benefit of a waiver of 50% transmission charges for 25 years if the PSA is approved.

It also considered the averments of HPPC that the renewable power offered by NHPC will be at a minimum CUF of 70%, which is equivalent to the plant load factor of a thermal power project.

After considering the urgency highlighted by the petitioner, the Commission approved the draft PSA and the tariff of ₹4.44 (~$0.051)/kWh.

It also approved the trading margin of ₹0.07 (~$0.00081)/kWh, noting that it is in line with the Ministry of Power guidelines.

Recently, HERC issued regulations on the Deviation Settlement Mechanism and related matters. Stakeholders can submit their feedback by February 11, 2025.

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