[ad_1]
The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of 234 MW of solar power by Brihanmumbai Electric Supply and Transport Undertaking (BEST) from the Solar Energy Corporation of India (SECI) at a tariff of ₹2.71 (~$0.033)/kWh.
The tariff includes a fixed component of ₹2.54 (~$0.031)/kWh, an exchange rate of ₹0.07 (~$0.0008)/kWh, and an additional risk premium of ₹0.10 (~$0.001)/kWh.
It also approved the draft Power Sale Agreement (PSA) between BEST and SECI.
Further, the committee noted that the solar power procured from SECI will be considered towards the target of repurchase obligation (RPO) of BEST.
The decision came in response to a petition filed by BEST seeking approval to procure 300 MW of solar power from SECI from the proposed Inter-State Solar Power Project (ISTS) linked to solar generation projects to meet the RPO target.
Background
In 2019, SECI promoted the purchase of solar connected generation. Adani Green and Azure Power were announced as the winners in the tender.
SECI has issued a Letter of Award (LoA) to Adani Green Energy Four for setting up 6 GW of ISTS connected solar power project linked to 1.5 GW of solar power plant.
Similarly, SECI has issued a LoA with Azure Power for setting up 2 GW of ISTS-connected solar power projects linked to 500 MW (per annum) of solar power plants.
In March this year, SECI informed BEST that it could procure 300 MW of solar power based on load demand for 2025 and asked BEST to consent to the procurement at a rate of ₹2.61 (~$0.032)/kWh, including trading. A margin of ₹0.07 (~$0.0008)/kWh.
According to the RPO target set by the board, BEST has achieved a solar RPO of 147.76 MU in FY21 and 217.35 MU in FY22.
The company has estimated RPO of 347.44 MU in FY23, 461.03 MU in FY 24, and 599.35 MU in FY25.
BEST, in its submission, said it will be provided from FY25 onwards, which will help it achieve its RPO targets.
It added that the purchase of 300 megawatts of solar power will significantly reduce BEST’s short-term power purchase volume, thereby protecting it from volatility.
Further, BEST added that its load forecast at the end of FY25 is 983 MW.
Considering existing tie-up with Tata Power Generation Company (TPC-G), Manikaran, Walwhan Solar, and PSA with SECI for 400 MW wind-solar hybrid along with solar power from 300 MW project could be beneficial. Meeting the demand-supply gap of BEST.
SECI, in its submission, has said that the existing capacity of two generators – Adani Green and Azure is for resale at best. But since Azure has not confirmed the sale, the amount of the best power is 234 MW, which will be supplied by Adani Green.
The nodal agency added that it will sign PPAs with Adani Green for purchase and sale of 234 MW after signing a PSA with BEST for such capacity.
The applicable tariff is ₹2.54 (~$0.031)/kWh plus a trade-in rate of ₹0.07 (~$0.0008)/kWh.
Analysis of the committee
The committee observed that the power proposed to be procured by BEST is not beyond the long-term RPO path set by the Ministry of Power.
Also, BEST has the right to substitute long-term energy at its cost and when the issue of extending PPAs with TPC-G comes up. Considering these factors, the committee approved BEST’s petition.
The state regulator added that SECI has offered solar power at a rate of ₹2.61 (~$0.032)/kWh, including a trading rate of ₹0.07 (~$0.0008)/kWh).
Also, since the state government guarantee does not cover BEST, it has to pay an additional risk premium of ₹0.10 (~$0.001)/kWh, which will be transferred to the Payment Security Fund maintained by SECI.
MERC stated that the total rate of ₹2.71 (~$0.033)/kWh (including risk premium) is lower than MSEDCL’s recently concluded solar auction and is a good option for BEST.
Recently, MERC allowed Adani Electricity Mumbai-Distribution to purchase 250 MW of renewable energy around the clock from the grid connection project through competitive bidding.
Follow our real-time regulatory updates to ensure you never miss any important updates from the renewable energy industry.
Rakesh Ranjan A staff reporter at Mercom India. Prior to joining Mercom, he worked in various capacities as business reporter, editorial assistant, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a BA in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.
[ad_2]
Source link
