MERC Turns Down Tata Power Petition Seeking Approval Of Part Commissioning Of Wind Power Project

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The Petition 

Tata Power Ltd- Distribution (TPC- D) had filed a petition on March 31, 2022 seeking relaxation of the Request for Selection (RFS) norm and approval for the partial commissioning of 96.15 MW of wind power from a 225 MW Long Term Hybrid Project (RPO).

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The MERC Mandate

As per the mandate of MERC (Renewable Purchase Obligation, its compliance and implementation of REC framework) Regulations, 2019 (RPO Regulations 2019), TPC-D must purchase a stipulated percentage of its total power requirement through Renewable Energy Sources (RES) to meet the RPO.

At the same time, the RPO Regulations, 2019 spell out the quantum of purchase from RES to meet the RPO requirement. A total shortfall of close to 345 MUs in Non-Solar RPO compliance is expected upto FY 2022-23.

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PPA With TPGEL-

TPC-D had entered into a PPA with TPGEL on 4.12.2020 for the purchase of renewable energy power from 225 MW hybrid project. The Scheduled Date of Commissioning (SCOD) was 21.4.2022. The SCOD, however, witnessed a delay due to COVID-19 (force majeure event).

Basis the extension by MNRE for commissioning of RE projects, TPC-D vide its letter dated 1.7. 2021 had agreed to force majeure event notified by TPGEL. The SCOD has been thus delayed from 21.4.2022 to 6 .7. 2022.

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Non-Compliance With RFS
Give the delay in the commissioning of full project capacity, TPGEL, vide its letter dated 9 February, 2022 has offered to supply 96.15 MW from its wind generating stations starting 1.4.2022.

In accordance with the RFS by TPC-D, part commissioning of single source (wind generating) plants is not permissible. Under the RFS provision, it would be mandatory to demonstrate commissioning of one component (either wind or solar) of capacity equal to at least 25% of the project capacity of the other component being commissioned for part commissioning of the project. Given that solar capacity of 25% of the project capacity is not yet installed, part commissioning of 96.15 MW wind energy does not meet the RFS mandate.

The petition, filed by TPC-D seeks relaxation of the RFS norm of part commissioning of the project to allow procurement only of 96.15 MW wind power from 1.4.2022. The petition further states that the proposed wind power purchase will help the petitioner achieve RPO obligation. Additionally, the proposed rate of wind electricity is approved by the Commission and will help meet the shortfall during the time of peak demand as well as help optimize the power purchase cost for TPC-D consumers.

The case was shot down by the Commission as the provisions of the RFS were not met, nor were the MNRE Guidelines.
It said that commissioning of only individual source, that is, ind or Solar, it shall not be treated as part commissioning.

The Commission notes that the details of the Wind Generators for which the part commissioning is proposed are as follows:

The Commission is not ready to approve TPC-request D’s for permission to partially commission a 96.15 MW wind power project in light of the aforementioned facts, the RFS, MNRE Guidelines, PPA, etc.

RPO Regulations, 2019 specify the quantum of purchase from RES to fulfill the RPO as follows-

For all additional information reader can view/download this Tata Power Ltd- Distribution (TPC- D) 225 MW tender documents consisting all the specification here.