Adani Green Wins Battle At TNERC With Tangedco On Tariff Applicability

Highlights :

  • The TNERC order in what seems to be an open and shut case is a pointer to the fact that ease of doing business remains a challenge for many developers, when dealing with state discoms.
Adani Green Wins Battle At TNERC With Tangedco On Tariff Applicability TNERC Clarifies Deviation Charges for RE Generators in Draft Regulations

In an order dated July 20, the Tamil Nadu Electricity Regulatory Commission (TNERC) has ruled in favour of Kamuthi Renewable Energy Ltd., a subsidiary of Adani Green Energy Limited  in a case involving a dispute with TANGEDCO on the applicable tariff for a 75 MW project at Kamuthi.  Tangedco, in an order September 2016, had sought to break up the 72 MW project into two components of  25 MW and 47 MW, with different tariff rates


The project work started in 2015, when Kamuthi Renewable Energy Ltd. entered a power purchase agreement with Tangedco for the establishment of a 72 MW-solar power project at Kamuthi taluk in Ramanathapuram district. The project was contracted at a tariff rate of Rs 7.01 per unit, with approval from TNERC on September 12, 2014. This was done as per TNERC order for all solar plants commissioned till March 31, 2016.

Kamuthi Renewable contended that it duly completed the plant before the due date, but the Tamil Nadu Transmission Corporation Limited itself requested it to inject only up to 25 MW of the generated power (72 MW) into the grid till the time permanent connectivity was formally provided.

In due course, on September 30, 2016, the superintending engineer, Non-Conventional Energy Sources, Tangedco,  issued a letter granting permanent connectivity.  Tangedco had also sent a letter on September 20, 2016, instructing  Kamuthi Renewable to install two separate meters — for 25 MW and 47 MW.  And started the genesis of the present case by saying that it would power would be purchsed at different rates from the power measured through the two meters. At Rs 7.01 per unit for 25 MW, and Rs 5.01 per unit for the second meter of 47 MW. The lower tariff was based on the new tariff declared by TNERC for plants commissionmed post March 31, 2016. This became a bone of contention, as the Adani firm made it clear that it had commissioned, and had the commissioning certificate to prove that the full 82 MW capacity was ready to inject power by the due date of March 31, 2016.

Agreeing with Kamuthi Renewable, TNERC ruled that the entire 72 MW-solar power plant was commissioned on March 31, 2016, based on the issuance of Commissioning Certificate by the Superintending Engineer, Ramanathapuram.

With TNERC also citing an APTEL ruling in this regard, one would hope that TANGEDCO will not escalate the case any further and allow the matter to be closed now. The full order can be viewed here.

Note: The Editor finds it worthwhile to highlight that coverage of TNERC related issues has been a real challenge thanks to the poor quality and condition of the regulators website. As on date, the site lacks a security certificate, and is mostly unavailable for access.

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