JUDGEMENT
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(1.) Maharashtra State Power Generation Co. Ltd. (MSPGCL) has filed a Petition on 4 July, 2014 under Sections 61, 86 and 181 of the Electricity Act (EA), 2003 read with the MERC (Terms and Conditions for Determination of RE Tariff) Regulations, 2010 and Regulation
92 of the MERC (Conduct of business) Regulations, 2004 for resolution of dispute between MSPGCL and Maharashtra State Electricity Distribution Co. Ltd.(MSEDCL) on
Tariff matters for its Solar Power Projects at Sakri, District Dhule (Maharashtra).
(2.) MSPGCL's prayers are as follows:
i) Admit this petition for expeditious hearing.
ii) Resolve the dispute between MSPGCL and MSEDCL regarding the Tariff matters as detailed in the petition
iii) Direct MSEDCL to make the payments to make the payments for 89.4 MW at the rate 15.61 Rs/Unit and for 10.6 MW at 11.16 Rs/ Unit to MSPGCL along with arrears with interest.
iv) Condone any shortcomings in the petition and allow MSPGCL to submit additional information during the course of proceedings on this petition before this Hon'ble Commission; and
v) Pass such further order(s) as it deems just, fit and proper in the facts and circumstances of the case.
(3.) In its Petition, MSPGCL has submitted that:
3.1. MSPGCL has developed a 125 MW (25 MW x 5 blocks) Solar Power Project at Sakri, Dist. Dhule. The Power Purchase Agreement (PPA) for the Project was signed with MSEDCL on 5 January, 2011. The Tariff for the Project is governed by the MERC (Terms and Conditions for determination of Renewable Energy (RE) Tariff) Regulations, 2010.
3.2. The Project was expected to be completed by 31 March, 2012. The applicable Tariff was Rs. 17.91/kWh as per the Commission's Order dated 14 July, 2010 in Case No. 20 of 2010.
3.3. As per the PPA, MSPGCL (the Seller) is to construct the Project and undertake at its own cost construction/upgradation of interconnection facilities up to the interconnection point. MSEDCL (the Purchaser) is to develop/maintain/augment the evacuation infrastructure beyond the interconnection point.
3.4. MSPGCL had placed an order for Engineering, Procurement and Construction (EPC) with M/s. Lanco Solar Energy Pvt. Ltd. for 75 MW using Crystalline SPV Technology on 6 May, 2011, with M/s Megha Engineering Infrastructure Ltd. for 50 MW using Thin Film SPV Technology on 21 May, 2011.
3.5.Objection was raised by the Forest authorities to the Project location, due to which further Project activities were discontinued. Owing to this, MSPGCL initiated a proposal to acquire forest land, which was approved on 3 May, 2012.
3.6.The Solar Project, except for 10.6 MW capacity, was ready for commissioning by 31 March, 2013. However, on account of delay in the evacuation system, the actual block - wise dates of energy injection into the State Grid were deferred as follows:
Power Generation facilities Actual date of energy injection to the Scope of MSPGCL state grid 25MW Block 1 2 April, 2013 25 MW Block 2 29 March, 2013 25 MW Block 3 (Lanco)* 2 April, 2013 25 MW MCR 1 2 April, 2013 25 MW MCR 2 2 April, 2013 * Pending installation of 10.6 MW ** Provisional clearance was given by statutory authority on 26 March, 2013.
3.7.The Tariff of the Project is governed by the MERC (Terms and Conditions for determination of RE Tariff) Regulations. Relevant excerpts from the PPA are as follows: "Section 10.1 Sale and Purchase: ... The MSEDCL will pay the Seller for the Solar Energy as metered at the (a) Point of Delivery at the "all -in" fixed Tariff as per MERC Orders. (b) The Tariff for solar power Projects shall be strictly as per the provisions of the Order dated 14.07.2010 of MERC... (c)..... However if any unit is commissioned after 31 -03 -2012, Tariff for that unit shall be as decided by MERC."
3.8.As per the Commission's Order dated 29 April, 2011 in Case No. 39 of 2011, in case the PPA is signed before 31 March, 2011 and the Commercial Operation Date (COD) is achieved before 31 March, 2013, the applicable Tariff will be Rs. 15.61 per kWh.
3.9.Dispute has arisen about the rate of solar energy for 89.4 MW which was injected into the State Grid on 2 April, 2013. MSEDCL is paying MSPGCL at the rate of 11.16 Rs/kWh. MSPGCL is billing 89.4 MW at the rate of 15.61 Rs/kWh since the evacuation system after the interconnection point was not ready till 31 March, 2013, which was the Purchaser (i.e. MSEDCL)'s obligation as per Section 4.02 (5) of the PPA. ;
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