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A recent development in the energy sector of Chhattisgarh has seen BSES Rajdhani Power Ltd. (BRPL) file a petition seeking approval for the purchase of 100 MW of Wind Power through the Solar Energy Corporation of India Ltd (SECI). The petition, filed under pertinent electricity regulations, aims to adopt a tariff for the purchase and obtain approval for the Power Sale Agreement (PSA) dated December 20, 2018.
BRPL’s petition emphasizes the importance of adopting a tariff determined through competitive bidding processes, in line with Ministry of Power (MoP) guidelines. They argue that SECI followed these guidelines diligently during the bidding process, ensuring fairness and transparency. BRPL highlights the alignment of the PSA with SECI’s Request for Selection (RfS) document and MoP guidelines, demonstrating compliance with regulatory requirements.
The proposed tariff is deemed competitive in the renewable energy sector, benefiting both BRPL and consumers. Moreover, it helps BRPL meet its Renewable Purchase Obligations (RPO) targets, further emphasizing its significance.
The jurisdiction of the commission over the approval of the PSA and adoption of the tariff is underscored, given the back-to-back nature of the agreements involved. BRPL cites precedent cases where similar petitions were approved by the commission, establishing its authority in such matters.
To provide updated information, BRPL submitted an additional affidavit detailing recent developments. This includes modifications to the tariff structure following a decision by the Central Electricity Regulatory Commission (CERC), leading to the signing of a Supplemental PSA in August 2021.
In response, SECI submitted affidavits explaining the status of related proceedings before the CERC and the Appellate Tribunal for Electricity (APTEL). SECI seeks approval for the procurement of Wind Power at the agreed tariff rate, in alignment with regulatory decisions.
After considering all submissions and legal precedents, the commission approved the PSA and adopted a total tariff of ₹ 2.84/kWh, including a trading margin of ₹0.07/kWh. However, the final decision on the trading margin is subject to the outcome of ongoing legal proceedings. This decision marks a significant step towards facilitating renewable energy procurement in Chhattisgarh, supporting the state’s efforts towards sustainability and energy security. It reflects the commitment of stakeholders to harness clean energy sources and meet regulatory obligations effectively.
Please view the document here for more details.
