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In a recent development, Tata Power Delhi Distribution Limited (TPDDL) has filed a petition under Section 86(1)(b) of the Electricity Act, 2003, seeking approval from the Commission for the execution of a Supplementary Power Purchase Agreement (SPSA) with Solar Energy Corporation of India Ltd. (SECI) and Alfanar Company. The petition aims to secure approval for the SPSA, which is intended to amend the existing Power Sale Agreement (PSA) between TPDDL and SECI for the sale of 50 MW of wind power on a long-term basis.
The Original PSA, dated 28.03.2018, obligated SECI to enter into power purchase agreements with selected Wind Power Developers (WPDs) for the procurement of 2000 MW of wind power. TPDDL is now seeking approval for the SPSA under Article 13.1 of the Original PSA, which allows for amendments or supplements through a written agreement between the parties.
SECI, through a Request for Selection (RFS) issued on 12.01.2018, selected Alfanar Company as the successful bidder for the development of a cumulative capacity of 2,000 MW Wind Power. Alfanar Company subsequently formed a project company, Alfanar Energy Private Limited (AEPL), for the development, generation, and sale of wind power.
Following the regulatory process, TPDDL filed a Petition before the Commission for approval of the Original PSA and tariff adoption. The Commission, in its order dated 13.03.2019, approved the Original PSA but directed TPDDL to approach the Hon’ble Central Electricity Regulatory Commission (CERC) for tariff adoption. Subsequently, TPDDL filed Petition No. 161/AT/2019 with the Hon’ble CERC, leading to the adoption of individual tariffs but no resolution on the trading margin.
In response to the CERC’s decision, SECI proposed an amendment to Article 5.1.2 of the Original PSA based on the mapping approved by Power Grid Corporation of India Limited (PGCIL). SECI shared a draft SPSA with TPDDL, and an amendment agreement was signed with AEPL on 13.05.2022, amending Article 4.4.1 of the Original Power Purchase Agreement (PPA).
SECI, through a letter dated 09.06.2022, informed TPDDL about the amendment agreement with AEPL and shared a draft SPSA for the sale of wind power from the Alfanar Wind Power Project.
TPDDL, under Section 86(1)(b) of the Electricity Act, 2003, filed the present petition seeking approval for the Supplementary Power Sale Agreement with SECI. The Petitioner highlights that the amendment aligns with the mapping and identification of the Alfanar Energy project for the supply of 50 MW Wind Power to TPDDL.
Notably, the Central Commission, in its decision dated 28.02.2020, held that Regulation 8(1)(d) provides the contracting parties with the choice to mutually agree on the trading margin. TPDDL’s efforts to secure approval faced legal challenges, including a reduction in trading margin by the Commission, which was later overturned by the Hon’ble APTEL. As of the latest development, the Commission has granted approval to the Supplementary PSA between TPDDL and SECI for 50 MW power from Alfanar Energy at a total tariff of ₹2.52/kWh, comprising ₹2.45/kWh plus ₹0.07/kWh as the trading margin. However, the trading margin approval remains subject to the final outcome of the Civil Appeal as directed by the Hon’ble Supreme Court of India in its Order dated 04.05.2023.
Please view the document below for more details.
