UPPCL Reprimanded for Delay in Getting Approvals for 439 MW of Wind Projects

There was a delay in getting approvals for the PSA and tariff of nearly two years

October 4, 2019

/ Wind

The Uttar Pradesh Energy Regulatory Commission (UPERC) has directed the Uttar Pradesh Power Corporation (UPPCL) to explain the delay in obtaining approvals for buying and scheduling of power from 439.9 MW of wind projects.

The issue relates to a petition that was filed by the UPPCL for accepting the delay in the adoption of a tariff, approval of power sale agreement, and power procurement for these projects. The PSA for the projects were signed in 2017, and the power projects were commissioned in 2018.

According to the petition, UPPCL had delayed the filing of a petition for the approval of the PSA of these projects by almost two years. Further, the state load dispatch center (SLDC) was scheduling power from these projects without the approval of the commission. Upon investigation by the UPERC, it was also found that UPPCL had not made the payments for the power that it had procured by the intermediary – Power Trading Corporation of India (PTC).

Expressing its displeasure at both UPPCL and PTC for not abiding by the Electricity Act, the commission has directed UPPCL to provide an affidavit within a week to assign the responsibility and taking actions against those responsible for the delay in filing the petition. The petition will be heard again on October 10, 2019.

In a separate petition, UPPCL also requested the commission to withdraw a petition filed for 50 MW out of 350 MW capacity of wind projects. In this case, UPPCL had entered into a PSA with NTPC for 350 MW of wind energy. However, NTPC terminated the contract to procure 300 MW, which is why UPPCL had to file a petition. Out of the entire 350 MW capacity, the PSA for 50 MW was still in place, and UPPCL wanted to withdraw the petition for its approval until the matter was resolved. On this issue, the UPERC directed UPPCL to give an affidavit detailing the reasons for the withdrawal of the petition within a week.

Last month, the state commission issued draft regulations for captive and renewable energy generating projects in the state. The main objective of these regulations is to promote the generation of electricity from renewable sources, facilitate connectivity of renewable power projects with the grid, and ensure the sale of electricity to any person.

Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.