Regulator Allows Jharkhand DISCOM to Procure Power from 100 MW Floating Solar Project

JBVNL will procure the power at a ceiling tariff of ₹3.50/kWh or lower

September 20, 2023


The Jharkhand State Electricity Regulatory Commission (JSERC) recently allowed the Jharkhand Bijli Vitran Nigam (JBVNL) to procure 100 MW of power from a floating solar power project to be installed at the Getalsud dam in Ranchi to fulfill its renewable purchase obligation (RPO).

The Commission added that JBVNL should procure power from the project at a ceiling price of ₹3.50 (~$0.042)/kWh or lower.

It also asked the Solar Energy Corporation of India (SECI) to file a petition for tariff determination after the commissioning of the project.

JBVNL and SECI had filed a joint petition seeking approval of the provisional power purchase agreement (PPA) to purchase 100 MW of power from the floating solar project.


For the financial year (FY) 2020-21, the solar RPO component was set at 6.55%, but JBVNL could only manage 32.44 MUs against the target of 798.20 Mus. For FY 2021-22, the solar RPO component was fixed at 10.5%, but JBVNL could only manage 128.90 MUs against the target of 1,317.83 MUs. The Commission had directed JBVNL to comply with RPO for future years strictly.

JBVNL highlighted that the forthcoming 700 MW of solar power projects, for which JBVNL had signed PPAs with SECI, would contribute to meeting JBVNL’s RPO targets in the coming years, starting from the FY 2022-23.

Furthermore, JBVNL had already executed a power sale agreement (PSA) with SECI to procure 700 MW of solar power from multiple solar power developers. JBVNL has been utilizing 315 MW since January 2022.

SECI entered into an agreement with JBVNL for the project.

JBVNL submitted that its Board of Directors approved the purchase of 100 MW power from the project on a long-term basis at a tariff of ₹3.50 (~$0.042)/kWh or lower to be determined by the appropriate Commission.

JBVNL stated that SECI had proposed to set up solar projects with a cumulative capacity of up to 150 MW (100 MW at Getasud Dam and 50 MW at Dhurwa Dam) and offered a levelized tariff of ₹3.50 (~$0.042)/kWh.

The distribution company (DISCOM) accepted SECI’s proposal. The two parties signed a memorandum of understanding (MoU) to set up the project.

It also submitted that the tripartite water lease agreement was executed between the Water Resources Department, Government of Jharkhand, JBVNL, and SECI for the project.

JBVNL signed the provisional PPA with SECI on November 9, 2021.

Last February, SECI issued a global engineering, procurement, and construction (EPC) tender to install the project.

JBVNL emphasized that the project will receive a ‘must Run’ designation, exempt from merit order dispatch by the JBVNL. Power from the project would be injected at a single point into the state transmission utility of Jharkhand Urja Sancharan Nigam (JUSNL) at the interconnection point.

Commission’s Analysis

The Commission noted that the provisional PPA was meant to meet the RPO target by JBVNL as specified by the Commission via the Renewable Energy Purchase Obligation and its Compliance Regulations, 2016.

Accordingly, the Commission approved the procurement of power from the 100 MW floating solar power project at a ceiling price of ₹3.50 (~$0.042)/kWh or lower.

In September last year, JSERC had allowed JBVNL to procure 700 MW of interstate transmission system-connected solar power from SECI to fulfill its RPO.

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