Karnataka DISCOMs to Sign Supplemental PPAs with Developers

November 5, 2016


The power distribution companies (DISCOMs) in Karnataka have been asked by the state government to sign supplemental power purchase agreements (PPAs) with successful developers to set up 1,200 MW of solar projects across 60 taluks in the state. The supplemental PPA will correct clerical errors, such as locations, names of SPVs, and capacities of the original PPAs signed in June of 2016. The last date to sign the supplemental PPAs is November 15, 2016.

Under Phase-V, tenders were issued for 1,200 MW with bids being accepted for up to 20 MW on a taluk-by-taluk (county) across 60 taluks to distribute solar evenly across the state.

According to Mercom’s India Solar Project Tracker, out of the total 1,170 MW (1,070 – General Category and 100 MW – Module Manufacturer Category), PPAs had been signed for 1,010 MW by bidders quoting prices up to Rs.5.50 (~$0.0821)/kWh under the general category. All the PPAs under the module manufacturer category have been signed at prices quoted up to Rs.6.10 (~$0.0910)/kWh. These projects are expected to be commissioned in the third quarter of 2017.

Karnataka Energy Regulatory Commission (KERC) confirmed that there were minor discrepancies in the original PPAs which required the commission to request supplemental PPAs. The source also added that the original project commissioning date will not be extended despite requests to do so.

An official at Karnataka Solar Power Development Corporation Limited (KSPDCL) said, “there will be no change in tariff or scope of work for the developers since the supplemental PPAs are just a clarification of few omissions and minor errors in the previously signed PPAs.”

Image credit: By Polytropos-Commons (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons