Himachal Pradesh proposes APPC for FY 2014-15

HPSEBL has filed a petition before Himachal Pradesh Electricity Regulatory Commission (HPERC) seeking APPC determination for FY 2014-15.

The definition of APPC followed by HPERC can be read as –

The weighted average pooled price at which the Distribution Licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the energy suppliers, long-term and short-term, but excluding those based on renewable energy sources, as the case may be.

HPSEB has proposed the APPC as Rs. 2.24 against the current APPC of Rs. 2.17, and has requested to approve the same APPC for FY-14-15 effective from 01 April 2014.

A copy of the proposal can be found by clicking here.

Our previous blog post on Himachal Pradesh APPC for FY 13-14 can be read here.

Blog post on all other states APPC can be read here.

Contributed by – Dheeraj Babariya

Rajasthan to finalize APPC for its DISCOMs

State owned distribution companies in Rajasthan namely; Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) and Jaipur Vidyut Vitran Nigam Limited (JVVNL) have filed petitions for APPC determination of FY13 and FY14 respectively. The commission had previously declared provisional APPCs for both.

Before going in to the details, it is pertinent to note the definition of APPC being followed by Rajasthan –

“Pooled Cost of Power Purchase: The weighted average price at which the distribution licensee has  purchased the electricity including cost of self generation, if any, in the previous year from all the energy  suppliers, excluding short term power purchases and those based on renewable energy.” 

Unlike other states Rajasthan excludes short-term power purchases also, along with renewable power purchases.

JdVVNL petition for finalization of APPC FY13

RERC had finalized a provisional tariff of Rs. 2.75 per unit for FY13 as per its order dated 11th Jan 2013. Whereas, in the current petition based on audited accounts JdVVNL has asked for approval of Rs. 2.6713 per unit as per audited accounts of FY12.

Comment invited by 5th March 2014.

JVVNL petition for finalization of APPC FY14

In case of JVNNL, RERC has been asked to finalize the APPC of FY14 as Rs. 3.0865 per unit as per audited accounts of FY13.

Comments invited by 28th February 2014.

Our previous blogpost on Rajasthan APPC can be read here.

Blogposts on all other states APPC can be read here.

Andhra Pradesh declares APPC for FY 2013-14

An order dated 28th December 2013, for determination of APPC of FY 2012-13 (for FY 2013-14), considered 6,88,79.12 MUs of power bought at  22,594.78  crore INR by discoms of the state.

Accordingly the APPC for FY 2013-14 is finalized to be at Rs. 3.28/unit.

The following can be read on the payment adjustment issue –

“The difference between the provisional pooled cost of power purchase @ Rs 2.69/kWh (of FY 2011-12 considered for FY 2012-13) and the pooled cost now determined shall be paid to the developer in six equal monthly installments.”

All relevant orders on APPC in other states can be accessed here.

Our previous coverage on APPC of FY 2012-13 in Andhra Pradesh can  be accessed here.

The present order can be read here.


Madhya Pradesh takes note of non-compliance in solar RPO

On 20th November 2013, in petition no. 35/ 2013, MPERC took serious note on the issue of non-compliance of solar RPO by state utilities/discoms. It can be read in the order as:

Notwithstanding the aforesaid, the Commission is constrained to express serious concern on the lack of effort on the part of the utilities in fulfilling their respective RPOs. More than four months of the current financial year still remain and the respondents are directed to pursue renewable energy procurement to the maximum so that the shortfall against the RPO is minimized. Continuous failure on the part of utilities in this regard cannot be allowed to go unpunished.

MPERC also asserted that the petitioner & other such parties have never had any intention of selling power to discoms, despite being located within the state, as for such parties, opting  for REC mechanism brings exorbitant profits. This act is depriving the state discoms from solar power procurement as the same quantum of power (claimed by solar generators for REC) cannot be claimed by discoms towards fulfillment of their solar RPO targets.

However, MPERC shied away from taking a stern decision. Although, MP’s likelihood for solar RPO compliance has been estimated as high.

Previously, in September 2013, MPERC, through a fresh directive, had offered to account additional cost with regards to RPO compliance in true-up exercise.  More on this directive can be found by following this link.

The present order can be accessed here.

Rajasthan sets revised tariff for Solar and Biomass power projects

Rajasthan electricity regulatory commission (RERC) through an order dated 4th September 2013, has set a new preferential tariff rate for all solar projects (PV or thermal) to be set up in the state. As per this order, the tariff has been set at Rs. 8.33 per unit for solar PV projects and Rs. 11.37  per unit for solar thermal projects (for projects not availing AD benefit). The new tariff has been decreased by 13.5 % for solar PV and by around 5% for solar thermal projects respectively.

This tariff will be applicable for solar PV projects signing PPA on or before 31.04.2014 and getting commissioned before 31.03.2015. In case of solar thermal projects the commissioning date must be on or before 31.03.2016.

The solar PV tariff is 42 paise per unit less than that bench-marked by CERC and for solar thermal projects it is 53 paise lesser than corresponding CERC benchmark.

S.No Particulars Tariff (when AD not availed) as per T.O dated – 30.05.2012 in Rs. Per unit Tariff (when AD is not availed) as per T.O dated – 04.09.2013 in Rs. Per unit  % change in tariff
1 Solar PV  9.63 8.33 -13.50%
2 Solar Thermal 11.95 11.37 -4.85%

 The order on solar tariff can be accessed by clicking here.

With regards to Biomass based projects, the order was out on 8th October 2013. As per this order, for projects commissioned during FY14, the tariff applicable is Rs. 5.44 per unit (for projects not availing AD) and Rs. 5.23 (for projects availing AD).

Uttarakhand orders UPCL to meet RPO* shortfall within 2 months

Uttarakhand Electricity Regulatory Commission (UERC), in an order dated 11th September 2013 has ordered Uttarakhand Power Corporation Limited (UPCL) to meet its non-solar RPO shortfall of FY12 no later than 15th Nov 2013 through the purchase of RECs (i.e. within 2 months). This seems to be a super-strict order but in a positive direction.

UPCL in a letter dated 10.07.2012, had requested the commission to carry forward the shortfall of FY12 and had revised the estimates to 0.06% (Solar) and 4.10% (Non-Solar). In the subsequent order on 19.12.2012, the commission had mentioned that “financial condition of the company cannot be the ground for not meeting the obligations cast upon it under the Act & Regulations”. The commission had also said that any financial burden would be allowed to pass through the ARR, despite this it was observed that UPCL still did not comply with the stipulated regulations.

The total quantum as shortfall of FY12 is about 59.12 MUs, (as per data furnished by UREDA) which is going to generate a demand of 59000 non solar RECs in the next two months, which as per commissions is going to cost around Rs. 8.87 crore. Also, the shortfall in RPO for FY13 has to be mandatorily met by end of current fiscal cumulatively with RPO target of FY14. On the Solar RPO front, the commission has allowed to carry forward the solar RPO shortfall of FY12 and FY13 to FY14, acknowledging the fact UPCL has taken adequate steps to meet solar RPO.

In the same order, UERC has also observed that UPCL’s submissions regarding RPO data are not in sync with that furnished by UREDA.

For the copy of order click here.

Similar orders by other states can be read on the following page : REConnect blogposts on RPO

MPERC issues fresh directives on RPO compliance

Electricity regulatory commission of Madhya Pradesh,  in a fresh directive has ordered all DISCOMs of the state to comply with RPO. Owing to unavailability of information on power purchase from renewable sources by DISCOMs, the commission clarified that it was not in a position to include its effect in recent orders. However, in this fresh directive, MPERC has come up explicitly mentioning that any variation in power purchase costs will be considered and correspondingly accounted for in the true-up exercise.

This directive reads as –

“RPO compliance:
Directive: The Commission has notified regulation for Renewable Purchase Obligation
(RPO), effect of which on power purchase has not been considered by the Commission
in the present order as the petitioner has not filed any availability of power from
renewable sources. However, the petitioner is directed to ensure RPO compliance for
FY 2013-14 as per RPO Regulations and any variation in power purchase costs will be
considered during true-up exercise.”

MP plans to meet its RPO obligation completely by the end of FY15 by purchasing 2500 MW as per an article in a Hindi Daily. For compliance of RPO by the end of FY14, MP will need 14 Lakh non-solar RECs and 2,55,000 solar RECs.

For a copy of the relevant order click here.

Punjab pushes PSPCL for RPO compliance by December’13

Punjab state power corporation limited (PSPCL) has been asked to comply with its stipulated RPO target for FY12, FY13 and FY14 cumulatively. In an order dated 12 August 2013, Punjab regulator allowed PSPCL to carry forward 114.80 non solar MUs and 25.8 solar MUs to FY14, which is the cumulative shortfall for FY12 and FY13.

For the current fiscal (FY14), the Punjab Discom has to purchase around 400,000 RECs and the shortfall of 114800 will eventually entail over 500,000 RECs to be purchased by end of December 2013.

in MUs Shortfall (+/-) in MWh RECs required
Non Solar Obligation 114.8 114800 114800
Solar Obligation 25.8 25800 25800
  140.6 140600 140600

With Maharashtra and Delhi also pushing for RPO on similar lines, it is expected that the buy side participation  will improve in the  poorly performing REC market.

For the copy of the order – Click Here

Kerala defers applicability of Solar RPO

In a KSERC order dated  – April 4 2013, KSERC has mandated that solar renewable purchase obligation will be applicable on KSEB from FY14 and for other licensees from FY15.

Solar RPO of the state is set as– 0.25 %  for FY14 and is to increase by 10% every year.

Previously, in a 2010 order KSERC had mandated solar RPO to be effective from 2010 itself, but owing to sluggishness in developing solar generation and REC market, the same is made effective from FY14 for KSEB. This particular move can be seen as daunting for solar developers planning to invest in the state, given the fact the state is on the verge of finalizing its own solar policy 2013.

For copy of the order Click Here.

Karnataka APPC for FY14

Hon’ble commission through a gazette copy dated 21.06.2013 has come up with a new Average Pooled Purchase Cost (APPC) rate of 3.07 Rs. per unit. This APPC rate is for a period starting from 01.04.2013 – 31.03.2014.  An interim  APPC rate for FY13 previously determined was Rs. 2.60 per unit, which stands ineffective post 30th June 2013 ( for previous relevant blog-post, click here).

The new APPC rate is Rs. 0.47 per unit more and has been worked out taking into consideration the power purchase quantum data furnished by respective ESCOMs of the state. All the payments with respect to the difference of Rs. 0.47 per unit will be made to RE generators in three instalments as per the energy generated post 01.04.2013 till the date of this order.

The new APPC rate which is 18.07 % more poses lucrative options for RE projects. The APPC + REC model will now fetch minimum Rs.4.57 per unit to RE generators of the state. As far as REC mechanism is concerned the state still needs to revamp relevant regulations in line with those of CERC.

Gazette copy can be assessed here.

Relevant media article – The Hindu

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