The regulator also approved PSA between SECI and Chandigarh.
Chattisgarh (Natural Energy News): Joint Electricity Regulatory Commission (JERC) approved tariff of ~ 2.83 (~ $ 0.039) / kWh and trading margin of h 0.07 (~ $ 0.0009) / kWh for the purchase of 40 MW wind power between Chandigarh and Solar Energy Corporation is. Of India (SECI).
The petitioner, Department of Power, said that it has sold a power for sale of 40 MW of power for wind power projects (Tranche VI) of 1,200 MW of interstate transmission system (ISTS) for 40 MW wind projects under SECI's tender. An agreement was entered into (PSA). SECI was an arbitral advisor in this agreement.
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The PSA was signed by the Chandigarh Electricity Department on 30 August 2019, subject to JERC approval. It also stated that it is meeting its Non-Solar Renewable Purchase Obligation (RPO) goals by purchasing renewable energy certificates (RECs) for certificates 1.5 (~ $ 0.021) / kWh. It stated that the cost of RECs, including the average power purchase cost (APPC) per unit of purchase 3.67 (~ $ 0.050) / kWh, would be much higher than the trading margin (2.90 (~ $ 0.039) / kWh).
It noted that the rate of (2.90 (~ $ 0.039) / kWh) was financially beneficial for both parties, adding that the power coming from these projects is crucial to help Chandigarh meet its RPO goals.
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In its response, SECI (Solar Energy Corporation of India) pointed out that the trading perimeter of PS 0.07 (~ $ 0.0009) / kWh was mutually decided upon between the two companies as per PSA. It stated that this rate applies to and payable by Chandigarh to SECI, which is in line with the Trade Margin Rules of the Central Electricity Regulatory Commission (CERC).
Commission stand:
Upon analysis, the Commission stated that the petitioner justified the purchase of 40 MW of wind power, stating that it would meet its non-solar RPO obligations by purchasing REC for PO 1.5 (~ $ 0.021) / kWh. It also agrees with the petitioner's argument that it would be much more expensive for them than (2.90 (~ $ 0.039) / kWh.
The Commission said that the move to procure wind energy would help in reducing the burden on the power department of the Union Territory while it would also help in meeting the RPO obligations. It will also help to be 100% dependent on renewable energy as per previous instructions of the government.
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In its final order, the Commission accepted the pleas of both parties in favour of selling or buying 40 MW of wind power for wind 2.83 (~ $ 0.039) / kWh, plus (0.07 (~ $ 0.0009 / kWh)). To SECI with a trading margin. It was noted that the decision to purchase this wind power would help it meet its RPO goals and help it become 100% dependent on renewable energy in the future. Also approved.
Back in May, JERC announced general tariffs for solar, wind and small hydropower projects. Tariffs applicable to Andaman and Nicobar Islands, Lakshadweep Islands, Puducherry, Daman and Diu, Dadra and Nagar Haveli and the Union Territories of Chandigarh, Goa.
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