Assam Electricity Regularity Commission orders DPR revision with ceiling of Rs 3.90 per unit

Row over Namrup Solar PV Project tariff

STAFF REPORTER

GUWAHATI: The AERC (Assam Electricity Regularity Commission) has disposed of the row between the APDCL (Assam Power Distribution Company Ltd.) and the APGCL (Assam Power Generation Company Ltd.) over the proposed tariff of the proposed 25-MW Namrup Solar PV Project by asking them to revise their DPR (detailed project report) with the ceiling tariff at Rs 3.90 per unit instead of Rs 4.66 per unit. The AERC also asked them to submit the revised DPR and the PPA (power purchase agreement).

The 25-MW Namrup Solar PV Project is a joint venture between APGCL and OIL (Oil India Ltd.).

The petitioners, APGCL and OIL, have agreed to incorporate a joint venture company (JVC), with APGCL holding 51 percent and OIL holding 49 percent of the shares, respectively, to design, build, operate, explore, and expand in the renewable and green energy domain, including energy storage plants in Assam and across India, starting with the 25-MW Namrup Solar PV Project, Assam. The JVC has the approval of the state cabinet.

A meeting of the APGCL board held on May 30, 2023, approved the DPR for the 25-MW Namrup Solar PV Project. The proposed JVC has the approval of the competent authority, OIL, which requested that APGCL proceed with the onward submission of the DPR to the AERC for its approval.

The petitioner mentioned in their petition that they would sell the energy generated from the proposed solar PV plant to APDCL as per PPA terms and conditions, and the proposed tariff is Rs 4.66 per unit.

The respondent, APDCL, mentioned that the tariff of Rs 4.66 per unit proposed by APGCL is very high and is in excess of the ceiling rate of Rs 4 per unit fixed by the Commission (AERC). It requested that APGCL review the project cost and arrive at a lower tariff to avoid any additional burden on consumers.

APDCL also mentioned that, for projects of 50 MW, 70 MW, and 200 MW at different locations, the tariff arrived at is Rs 3.90 per unit after reverse bidding by SJVN GREEN ENERGY Limited.

APDCL has already moved to the Government of Assam for their comment.

The APGCL requested that the AERC provide a ceiling tariff so that the necessary revision of the DPR may be done at the earliest possible time for approval.

Considering the facts and submissions of APGCL and APDCL, the AERC is of the view that, as the project location is inside the premises of the NTPS plant and is owned by APGCL, the tariff proposed is very much higher where the availability of land is also not an issue. The AERC has allowed the petitioner to revise the DPR with a ceiling tariff of Rs 3.90 per unit.

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