GREEN ENERGY ASSOCIATION Vs. TATA POWER COMPANY LTD
LAWS(ET)-2014-5-14
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on May 05,2014

Green Energy Association Appellant
VERSUS
TATA POWER COMPANY LTD Respondents

JUDGEMENT

- (1.) M/s Green Energy Association has filed a Petition under Regulation 85 MERC (Conduct of Business) Regulations, 2004, for Review of the Order dated 20.12.2013, passed in Case No. 159 of 2013 by MERC under MERC (Renewable Purchase Obligation, its Compliance and Implementation of REC Framework) Regulations, 2010 wherein relaxation / waiver of the Solar RPO target for TPC -D for FY 2010 -11, FY 2011 -12 and FY 2012 -13 to fulfil the Solar RPO target on a Cumulative basis by FY 2015 -16 was granted by the Commission.
(2.) The Petitioner has prayed as under; "1. To allow the present review petition. 2. To review the order dated 20.12.2013 in petition No. 159 of 2013 passed by the commission holding that there are error apparent on face of record and the materials which was not available while the decision taken by the commission. 3. To hold that the present arrangements by TPC -D will still lead to further shortfall on their Solar RPO in FY 2015 -16 and in the event that more than the capacity required by TPC -D of Solar RECs are available in the Exchange TPC -D shall be asked to purchase Solar REC'S to fulfill their deficit Solar RPO. 4. The price average approved cost of Solar Power considered and approved for TPC -D is even higher than the forbearance price of the Solar REC'S and more over the Solar RECs are available at Floor Price, in this event also the TPC -D shall be asked to purchase Solar REC for the compliance of their Solar RPO. 5. Since the TPC -D plans to comply with deficit Solar RPO in the FY 2015 -16 through REC's only and expected solar capacity addition which may come up, we humbly request the commission to direct to the respondents to procure the Solar RE or Solar RECs for the fulfillment of their RPO as per honorable commission's Notification in the present year itself to maximum extent to minimize the gap in compliance. 6. To hold that solar REC were available unsold in the exchange for fulfillment of RPO of the OEs however they have not made an attempt to purchase the same in the current FY is in violation of the commissions Regulation on Procurement of Energy from Renewable Energy Sources, Regulation 2010. 7. To pass any other order as the Hon'ble Commission may deem fit and appropriate under the circumstances of the case and in the interest of justice; 8. To condone any error / omission and to give opportunity to rectify the same; 9. To permit petitioner to make further submissions, addition and alteration to this petition as may be necessary from time to time."
(3.) Petitioner has raised following contentions in the Petition; 3.1 The Petitioner is an association of companies engaged in generation of electricity through non -conventional source of energy (solar power) under REC mechanism. 3.2 The present Review Petition has been filed by the Petitioner against the Order dated 20 December, 2013 in Case No.159 of 2013 passed by the Commission wherein the Commission decided to allow waiver/carry forward of the Solar RPO Compliance requirement for the year FY 2010 -11, FY 2011 -12 and FY 2012 -13 cumulatively up to FY 2015 -16 for the Respondent. 3.3 The Petitioner submits that due to waiver/relaxation /carries forward Orders by the various state Regulators and non compliance of the Solar RPO, huge inventory of unsold RECs have piled up in the power exchanges leading to serious cash flow problems faced by the Solar Power Plant Developers under REC mechanism. 3.4 The Petitioner further submits that the Commission has neither asked the Solar Power Developer under REC mechanism or its association and/or the state nodal agency established for the promotion of Renewable Energy and the State Agency who were the affected parties before passing the Order in Case No.159 of 2013. 3.5 Further, it was submitted by the Petitioner that as a matter of fact there were sufficient Solar RECs available on the exchange for the compliance of the Solar RPO of TPC -D but no attempt were made by TPC - D to procure Solar REC in FY 2013 - 14. On the other hand, TPC - D has given the reason of unavailability of sufficient Solar RECs for non fulfilment of its Solar RPO target in Case No. 159 of 2013. 3.6 The Petitioner submits that even with the present arrangement of TPC -D for the Long term PPA with 25 MW Solar Generating Station of Tata Power at Dhiganchi, Satara District, which is expected to commission in FY 2014, TPC -D will still not be able to cumulatively fulfil its Solar RPO. For meeting the shortfall, TPC -D planned to fulfil by purchase Solar RECs or by increasing the generation capacity. 3.7 The Petitioner further submits that one of the Respondent's reasons for non - compliance was unwillingness of solar developers for short term PPAs was irrelevant. As solar power plants installed in the country are either under long term PPAs or under REC mechanism, where short term PPA will cause huge financial loss, due to which Solar Power plant for short term PPAs were not available. The Respondent was very well aware of these facts then also it called for short term PPA without any intention to buy Solar Power. 3.8 The Petitioner submitted that Forum of Regulators with consensus have agreed on the need for stricter action against non -compliance of the RPO Targets, invoking the provisions in the existing regulations of imposing non -compliance charges by the regulators and imposing penalty for non -compliance of RPO, in the FOR meet held on 21 August, 2013 in New Delhi. 3.9 The present Petition filed by the Petitioner on following grounds; a. That the Commission erred in deciding the aforesaid Petition in Case No 159 of 2013 without given an opportunity to the Solar Power Project Developers under REC mechanism who are affected parties in Case of above Petition. b. That there is an apparent error on face of record by the Commission in assuming that TPC -D has made sincere efforts to fulfil their Solar RPO under RPO Regulations. ;


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