KSERC has asked state Discom KSEB to modify its PSA that it had signed with the SECI for procuring 200 MW wind energy.
The Kerala State Electricity Regulatory Commission (KSERC) has in its latest order, asked state Discom Kerala State Electricity Board (KSEB) to modify its Power Sale Agreement (PSA) that it had signed with the Solar Energy Corporation of India (India) for procuring 200 MW of wind energy.
KSEB filed the petition on July 1, 2019, seeking approval for the 200 MW wind PSA with SECI so it can meet its renewable purchase obligations (RPO).
In response to a petition filed by the KSEB for the approval of the PSA with SECI, the state commission has issued an order stating that the agreement must be modified to reflect the updated regulations by the Ministry of Power before it can approve the proposal. KSEB and SECI will also be required to submit additional documents issued by the central government on which they have relied while finalising the contract.
According to the PSA signed by the parties in June this year, SECI had allotted 200 MW of wind projects to KSEB at a tariff of Rs 2.83/ kWh and a trading margin of Rs 0.07/ kWh. All the state Discoms are required to meet a target of 925 MW from non-solar renewable energy sources by 2021-22, according to the RPO. However, the existing non-solar capacity in the state is only about 273 MW.
In its statement, the KSERC cited a clause that needed revision before the PSA can be approved. The clause stated that KSEB would be liable to carry all the power transmission losses as determined by the appropriate commissions. The Commission, however, noted that the Ministry of Power had waived interstate transmission charges and losses for 25 years from the date of commissioning (COD) for all wind and solar projects commissioned until March 31, 2022.
The order stated that the KSEB needs to modify the agreement to reflect the updated regulations before it can be approved.