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The Kerala State Electricity Regulatory Commission (KSERC) has issued an interim order in the case of Kerala State Electricity Board Limited (KSEBL) and CV Renewables Pvt Ltd regarding a long-term power purchase agreement (PPA). The case concerns the purchase of wind power generated from CV Renewables’ 250 kW wind energy generator (WEG) located at Ramakkalmedu.
KSEBL filed a petition on December 24, 2024, seeking approval to enter into a long-term PPA with CV Renewables at a ceiling tariff of ₹3.94 per unit. The tariff matches the generic rate approved by KSERC for wind energy projects without the benefit of accelerated depreciation. KSEBL argued that this arrangement is necessary to ensure a consistent supply of renewable energy and support Kerala’s energy needs.
CV Renewables had initially requested ₹3.95 per unit, citing high costs associated with setting up wind projects in hilly terrain. They explained that their actual production cost was ₹6.50 per unit, largely due to the additional expenses of developing infrastructure and connecting their plant to the KSEBL grid. Despite these challenges, they agreed to supply power at ₹3.94 per unit, consistent with the KSERC-approved generic tariff.
KSEBL had previously proposed a lower rate of ₹3.64 per unit, the tariff applicable when claiming accelerated depreciation benefits. However, CV Renewables declined, stating that the higher costs of setting up and maintaining the project made it unfeasible.
The hearing was held on March 18, 2025. KSEBL confirmed that the project has been connected to the grid since August 16, 2024, and electricity has been supplied regularly. CV Renewables mentioned that they had already delivered over 100,000 units to the KSEBL grid but had not received payment so far.
The Commission clarified that the generic tariff of ₹3.94 per unit for projects up to 5 MW had been determined under its Renewable Energy and Net Metering Regulations. Since both parties had agreed to this tariff, there was no need for additional approval of a project-specific tariff unless a separate petition was filed with detailed cost data.
KSERC directed KSEBL and CV Renewables to finalize the draft PPA, incorporating mutually agreed terms and conditions. The draft should be submitted to the Commission for approval within one month. KSERC also permitted KSEBL to release payments to CV Renewables at ₹3.94 per unit for the electricity already supplied.
Additionally, KSERC encouraged KSEBL to support renewable energy development in hilly regions by setting up a nodal office to help coordinate such projects. The Commission noted the challenges faced by developers in coordinating with multiple offices and departments and suggested that KSEBL take proactive steps to simplify this process.
The next hearing on the petition will be scheduled separately, and both parties were given the option to submit any additional details. The interim order was issued on March 20, 2025, with instructions for compliance within a month.
