New Delhi: Ministry of Power has informed the states that discoms (distribution companies) have an option to exit from PPAs (power purchase agreements) after 25 years, paving the way for BSES. Yamuna Power and BSES Rajdhani Power To get out of a costly deal run by the state NTPCDadri Unit.
The ministry on Monday sent a circular to all states and central generating utilities, stating that power stations were free to sell the quantity of electricity in various ways after exiting the PPA.
The ministry’s circular was prompted by queries from stakeholders in the wake of the Central Tariff Regulator’s decision on petitions by BSES discoms.
Central Electricity Regulatory Commission (Circle) said on July 2 that the existing rules empower discoms to exit the PPA after completion of 25 years of commercial operation of the power station concerned, which is considered to be the complete lifecycle of the plant.
From CERC’s decision and Ministry’s clarification 45. will help in easing upward pressure on tariffs of lakh BSES Subsidy burden of consumers and Delhi Govt. BSES Discoms can buy power from exchanges at half the price of Rs 6 per unit paid for supply from Dadri. BSES Yamuna was allocated 62 MW and BSES Rajdhani 560 MW from Dadri Stage-I unit.
The DISCOMs after completing 25 years of operation on November 30, 2020, stopped demanding power from the allocated Dadri-I capacity called ‘scheduling’ in industry parlance and demanded termination of PPAs. But NTPC did not agree, prompting the discoms to transfer the same to CERC.
The power ministry’s clarification is likely to spark a flood of similar exit petitions across the country as discoms increasingly tap cheaper power from renewable sources to reduce costs.
The BSES case also reflects the ongoing transition in the power market, where rising supply from renewable sources is putting pressure on tariffs and reducing demand for costly electricity from coal-fired plants.
The ministry on Monday sent a circular to all states and central generating utilities, stating that power stations were free to sell the quantity of electricity in various ways after exiting the PPA.
The ministry’s circular was prompted by queries from stakeholders in the wake of the Central Tariff Regulator’s decision on petitions by BSES discoms.
Central Electricity Regulatory Commission (Circle) said on July 2 that the existing rules empower discoms to exit the PPA after completion of 25 years of commercial operation of the power station concerned, which is considered to be the complete lifecycle of the plant.
From CERC’s decision and Ministry’s clarification 45. will help in easing upward pressure on tariffs of lakh BSES Subsidy burden of consumers and Delhi Govt. BSES Discoms can buy power from exchanges at half the price of Rs 6 per unit paid for supply from Dadri. BSES Yamuna was allocated 62 MW and BSES Rajdhani 560 MW from Dadri Stage-I unit.
The DISCOMs after completing 25 years of operation on November 30, 2020, stopped demanding power from the allocated Dadri-I capacity called ‘scheduling’ in industry parlance and demanded termination of PPAs. But NTPC did not agree, prompting the discoms to transfer the same to CERC.
The power ministry’s clarification is likely to spark a flood of similar exit petitions across the country as discoms increasingly tap cheaper power from renewable sources to reduce costs.
The BSES case also reflects the ongoing transition in the power market, where rising supply from renewable sources is putting pressure on tariffs and reducing demand for costly electricity from coal-fired plants.
.