AP power regulator snubs discoms over renewable energy obligations

The Andhra Pradesh Electricity Regulatory Commission (APERC) has asked the state discoms to procure power from renewable energy producers not only to meet the energy requirement of the state but also as part of their obligation to honour the power purchase agreements (PPAs).

These directions came as part of the APERC’s Tariff Order determining the retail tariff, the energy supply and the Discoms‘ revenue requirements for the year 2020-21, issued on Monday.

The power regulator also snubbed the state power utilities for not showing the renewable energy as part of the overall energy availability in the state in their annual revenue requirement (ARR) filings for the year 2020-21.

Taking the renewable energy sources into account, the power regulator has raised the energy availability by 12,046 million units (mu) to a total of 78,405 mu in the state, thus integrating all energy sources for ARR calculations for next year.

The power regulator rejected the discoms’ proposal to buy power from private power plants who are not having any binding agreements, compelling the power utilities to meet any additional energy requirement next year from renewable energy producers having PPAs.

The private renewable energy players, who command a combined installed capacity of over 8,000 mw in solar and wind energy in the state, had entered into a bitter legal battle with AP power utilities last year after the latter had unilaterally demanded reduction of procurement tariff agreed in PPAs.

While the dispute is yet to be settled legally, the electricity regulatory commission in its orders clearly told the Discoms to stick to their obligations with regard to the renewable energy agreements until there was closure in judicial forums.

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