TG Regulator Asks Discom to Synchronise Developer’s 3MW Solar Project

Highlights :

  • TSERC directed the Southern Power Distribution Company of Telangana Ltd to synchronize Tejas India Solar Energy’s 3 MW solar power project at Kodakandla substation within 30 days.
  • However, TSERC rejected Tejas’ plea for the repayment of its bank guarantee of Rs.12,00,000 along with interest at the rate of 1.25% per month.

The Telangana State Electricity Regulatory Commission (TSERC) has favoured solar developer Tejas India Solar Energy Pvt Ltd. in a recent judgement, partly allowing its petition to direct the Southern Power Distribution Company of Telangana Ltd (TSSPDCL) to synchronise the developer’s 3 MW solar power project at Kodakandla substation within 30 days, while rejecting Tejas’ plea for the repayment of its bank guarantee of Rs.12,00,000 along with interest at the rate of 1.25% per month.

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To summarise the case, in September 2015, Tejas requested TSSPDCL to clear the technical feasibility (third party sale) of its 6 MW solar power project for the grant of connectivity at 33 kV level to 33/11 kV Kodakandla substation in Telangana.

TSSPDCL confirmed the technical feasibility, laying down the following conditions:

  • The developer must furnish Rs. 2,00,000 as bank guarantee (BG) for the validity period of two years and two months, with one month additional claim period.
  • The developer must provide a communication system i.e. SCADA/DAS, so as to transfer real-time data to Transmission Corporation of Telangana Limited (TSTRANSCO).

The petitioner was able to comply with the first condition of submitting the BG and December 2017 was decided as the Scheduled Date of Commissioning (SCOD).

By the actual SCOD’s expiry, though, only a part of the capacity i.e., 3 MW (out of 6 MW) had been set up by Tejas and the SCADA/DAS was not in place either. Consequently, TSSPDCL issued a letter to the petitioner’s bank invoking the BG of Rs.12,00,000, for failing to timely commission the 6 MW solar project.

But TSTRANSCO permitted the synchronization of the project pending integration of SCADA/DAS upon taking an undertaking from the petitioner about not claiming any credit for energy injected into the gird till DAS/SCADA’s establishment. Citing this letter, Tejas expressed readiness for the project’s synchronisation and also requested TSSPDCL to withdraw the notice invoking the BG.

However, no further action was taken by the TSSPDCL in the matter and till date, the project has not been synchronised/ commissioned, even though the integration of SCADA / DAS was done in February 2018.

Upon considering the facts of the matter, the commission commented that the Electricity Act, 2003, mandates the promotion of generation of electricity from renewable sources by providing suitable measures for connectivity with the grid and the sale of electricity to any person.

To fulfil this mandate, TSERC urged TSSPDCL to give the petitioner’s case special consideration. The commission thus directed the discom to facilitate the synchronisation of Tejas’ project, with 3 MW capacity, within 30 days of the order’s passing.

TSERC also said that the petitioner was at liberty to apply for 3rd party open access in accordance with the terms and conditions of Open Access Regulation, 2005. TSTRANSCO and TSSPDCL were instructed to facilitate the grant of open access to Tejas in compliance with the regulation’s provisions.

“As regards other relief sought by the petitioner, as the conditions stipulated in the confirmation of the technical feasibility had not been complied in full by the petitioner as on the scheduled date of commissioning, the Commission upholds the act of Respondent No.1 in encashing the petitioner’s BG,” TSERC concluded in its order.

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Soumya Duggal

Soumya is a master's degree holder in English, with a passion for writing. It's an interest she has directed towards environmental writing recently, with a special emphasis on the progress being made in renewable energy.

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