Telangana DISCOM Directed to Clear Dues to Solar Power Generator

The Commission also directed the DISCOM to open a Letter of Credit in favor of the solar generator


The Telangana State Electricity Regulatory Commission (TSERC) recently directed the state distribution company (DISCOM) to pay for the electricity supplied by a solar power generator along with interest within 45 days.

The state regulator also directed the DISCOM to open a ‘Letter of Credit’ in the petitioner’s favor to make all future payments promptly.

Winsol Solar Fields had filed a petition seeking the release of dues along with interest for late payment and consequential relief of the payment of future bills promptly per the power purchase agreement (PPA). The company has a 10 MW solar power project in the Mahabubnagar district of Telangana.


Winsol Solar Fields is a power generating company that operates a 10 MW solar power project connected to 132/33 kV Kodangal substation in the Mahabubnagar district of Telangana.

In 2014, the Southern Power Distribution Company of Telangana (TSSPDCL) and Northern Power Distribution Company of Telangana (TSNPDCL) issued a tender to procure 500 MW of solar power through a tariff-based competitive bidding process.

First Solar Power India, the petitioner’s parent company, participated in the bidding process and emerged successful quoting a tariff of ₹6.90 (~$0.087)/kWh. TSSPDCL executed the PPA on April 10, 2015, with First Solar to purchase energy for 25 years. Later, First Solar incorporated the petitioner as its 100% owned subsidiary, and accordingly, the PPA was revised in the petitioner’s name.

Winsol Solar Fields had been issuing monthly invoices to TSSPDCL for the energy supplied. As per the PPA, TSSPDCL was to make the payments within 30 days of the meter reading date. The solar generator was entitled to the late payment surcharge (LPS) as per the PPA, which provides that in case of delay in payment beyond 30 days, TSSPDCL must pay interest at the prevailing SBI bank rate on the outstanding amount.

It added that the unpaid monthly bills from November 2020 to September 2021 amounted to ₹114.84 million (~$1.45 million). Also, TSSPDCL had not even paid the LPS on the delayed payments for invoices raised before November 2020 and, therefore, was liable to pay ₹31.01 million (~$390,639).

The solar power generator clarified that along with the communications regarding non-payment of the outstanding amounts, it also wrote to TSSPDCL for the opening of the revolving ‘Letter of Credit,’ but without any effect.

Commission’s analysis

The Commission observed that while the respondents had not paid the petitioner for the energy invoices raised since November 2020, they were recovering the tariff for the energy procured from the Kodangal Project from the end consumers. The cost of procurement of power from the petitioner had been accounted for in the tariff charged by TSSPDCL from its consumers. Despite recovering these amounts, payments to the petitioner were being withheld.

“The non-payment of dues by the DISCOM has a cascading effect that not only adversely impacts the solar project of the petitioner, thereby causing tremendous loss to the investors for no fault of theirs, but also to the banks and financial institutions which have financed the solar project,” the Commission said.

The Commission stated that in the absence of any contest by the state DISCOM, there should not be any dispute on the amounts payable by the DISCOM to the petitioner.

Considering all the facts, the Commission granted the petitioner relief for the billed amount and interest claims. It directed the respondent to put in place an irrevocable revolving Letter of Credit issued in favor of the power generator within 45 days.

In March last year, the Telangana Solar Power Developers’ Association urged the state Chief Minister to advise the Telangana State Power Coordination Committee and Telangana state DISCOMs to clear at least six months’ payments due to solar power developers immediately.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.


Rakesh Ranjan


Mercom Research Focus
India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY

India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...

March 15, 2023


Kerala Issues Empanelment Tender for 100 MW of Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...

March 20, 2023

Tenders and Auctions

Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option

Gujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...

March 17, 2023


MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: Interview

Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...

March 17, 2023



Mercom Cleantech Magazine

Get Your Copy Today!


Latest News

Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...

March 21, 2023

Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...

March 21, 2023

NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...

March 21, 2023

Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...

March 21, 2023

India Voices Concern over Europe’s Carbon Tariff Measure at WTO

India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...

March 21, 2023

JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...

March 21, 2023

Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...

March 21, 2023

Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...

March 21, 2023

IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...

March 21, 2023

Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm

The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...

March 21, 2023