E-Paper
PSERC rejects state Powercom proposal to buy solar power from SGEL at ₹2.55 per unit
Though the power rate offered by SGEL to the PSPCL is much less, still PSERC observed that it is not as par with the power tariff finalised by both entities in 2022, when the upper ceiling limit was ₹2.44 per unit.
The Punjab State Electricity Regulatory Commission (PSERC), has rejected the proposal of the state power corporation to buy 500 MW of solar power from Satluj Jal Vidyut Nigam (SJVN) Green Energy Limited (SGEL) at a rate of ₹2.55/kWh for next 25 years.
Though the power rate offered by SGEL to the PSPCL is much less, still PSERC observed that it is not as par with the power tariff finalised by both entities in 2022, when the upper ceiling limit was ₹2.44 per unit.
The decision came on PSPCL’s petition for approval of the procurement of 500 MW solar power from SGEL under the Tranche-III scheme notified by the Ministry of New & Renewable Energy (MNRE) at a ceiling tariff of ₹2.55/kWh exclusive of any other third-party charges such as wheeling/transmission charges and losses, point of connection charges and losses, cross-subsidy surcharges etc.
On March 5, 2019, the MNRE had approved the implementation of CPSU Scheme Phase-II for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by CPSUs, State PSUs, Government Organisations, with viability gap funding (VGF) support for self-use or use by government, government entities, either directly or through distribution companies.
The SGEL offered 500 MW power to PSPCL at a discounted rate of ₹2.44 per unit. However, later, the SGEL backtracked and offered a price of ₹2.56 per unit.
On March 27, 2023, PSPCL constituted a committee to explore the possibility of a reduction in tariff from ₹2.56/kWh after negotiations with SGEL. After deliberations, SGEL agreed to reduce the offered tariff to ₹2.55/kWh.
On April 28, 2023, PSPCL granted its in-principle consent to SGEL for the same, and on June 26, 2023, PSPCL and SGEL executed the agreement, and filed a petition before the power regulator to finalise the power purchase agreement.
The power regulator headed by Vishawjit Khanna observed that the proposal cannot be said to be passing the test of ‘transparency/fairness’ or ‘equitability and competition’, particularly so when the commission has recently approved the PSPCL’s proposal of power procurement of 400 MW solar power from NHPC Limited at a ceiling fixed tariff of ₹2.45/kWh under the very same scheme.
