HPPC has applied for the Commission`s authorisation in principle to purchase 250 MW of solar electricity from SECI under the 2000 MW ESTS system. HPPC wanted to buy 250 MW of SECI electricity at INR 2.93/kWh (excluding commercial margin) fixed interest rate for 25 years for… Non-compliance with chain contracts will affect the sustainability of the sector have concerns about the inviluence of AAEs in light of the controversial attempts of the government of Andhra Pradesh, negotiate clean energy tariffs with developers for approximately 140 power plants to revise the tariff to Rs 2.43 or Rs 2.44 for wind and solar installations, respectively 2.44 Rs and 2.44 Rs and 2.44 Rs or retroactively. The Supreme Court of Andhra Pradesh has granted interim measures and the case is 000 before the AP State ERC. The difference between current and future available prices compared to the electricity price of projects ordered in the past leads to widespread behavioural apathy towards the service of old sales contracts. A particular defence narrative, put forward by MSEDCL for late payments to wind producers, is rather noteworthy in this context. In Case 53 of 2016 (Shah Promoters – Developers vs. MSEDCL regarding unpaid payments for the sale of wind energy and interest on late payments), the distribution company first places the responsibility of the regulator to enter into costly and rigorous wind contracts. “The terms of the Energy Purchase Agreement (EPA) are approved by the Commission and it is mandatory for MSEDCL to conclude future EPAs under these conditions, although it is well known that these payment conditions on time cannot be strictly met in a poor financial situation and that there are several debts to bear.” The Lower Energy Committee recently presented to Parliament its fourth report on all the government`s financial plans in the country`s energy sector, all the programs implemented – their progress, the problems in this sector and the applications for subsidies for the 2020-21 fiscal year. One of the priorities of the report was the state of electricity purchase contracts in the country.
It has been suggested that there is a great deal of stress in the country`s energy sector, and one of the main reasons for this was long-term swallowing contracts, which are no longer feasible and have therefore not been fully complied with. “This is a problem with long-term commitments that the price for the entire duration of the agreement is set from the beginning. Now there is an escalation, because there are new technologies coming on the market that cause disruption. If the cost of renewable energy continues to fall each year, discoms are now struggling to attack these agreements. This is a big puzzle, a great topic and its creation of tension in the segment. But if you don`t have long-term commitments, you can get all the investments. In the report, the Commission continued the problem and requested that, in the case of an electricity project, it be delayed for some reason and that, therefore, the tariff be increased, if the discoms should not have the right to review the adjustment contract.