E-Paper
After Rs11L fine, PSPCL floats tenders for solar, non-solar power purchase
As per the Union government guidelines, power distribution companies are bound to purchase at least 10% of the power required from renewable energy sources.
After Punjab State Electricity Regulatory Commission (PSERC) slapped a fine of ₹11 lakh on Punjab State Power Corporation Limited (PSPCL) for not meeting the renewable power obligation, the corporation has floated tenders for purchasing solar and non-solar power from renewable sources to avoid further embarrassment.
As per the Union government guidelines, power distribution companies are bound to purchase at least 10% of the power required from renewable energy sources. Though Punjab meets the obligation in solar power, it doesn’t have enough capacity to generate non-solar power, particularly from biomass.
The PSPCL has been falling short of renewable power obligations. As per the PSERC figures, the net non-solar renewable power obligation shortfall is 848.42 MU up to 2017-18. Following this, the power regulator directed the PSPCL to meet the requirement and imposed a fine of ₹11 lakh on it as a token punishment in its tariff order.
In December 2018, PSERC had imposed fine of ₹1 lakh with a direction to meet the renewable power obligations by March 2019.
In its aggregate revenue requirement (ARR) for 2018-19, the PSPCL has proposed ₹1,731 crore ( ₹1,412 crore long term and ₹318 crore short term) for purchase of power from renewable energy sources.
Though the Punjab Energy Development Agency (PEDA) floated tenders for biomass power units several times, but it could materialise due to tariff issue with the PSPCL. Punjab generates million of tonnes of paddy straw but it is not being utilised for power production.
To avoid further embarrassment and penalty from the power regulator, the PSPCL floated tenders for the short-term power purchase of 185 MW or 405 MUs from renewable energy projects (non-solar) and another similar tender for short-term procurement of solar power of up to 280 MW of capacity or 115 MUs.
The successful bidders will not be able to claim renewable energy certificates for the power supplied as the PSPCL will it to meet its renewable power obligation targets set by the power regulator. The power has to be supplied from September 1.
While PSPCL’s director (distribution) NK Sharma could not be contacted despite repeated attempts, officials privy with the development say the PSPCL may float another tender to meet full requirement of renewable power obligation.
