Petition for procurement of 120 MW Capacity of FDRE Power from ISTS connected by New Delhi Municipal Council through NHPC Ltd. on record the PSA – EQ

Summary:

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#### 1. Case Overview & Legal Framework

– **Petition No.:** 62/2025
– **Petitioner:** New Delhi Municipal Council (NDMC)
– **Intermediary:** NHPC Ltd. (acting as the Renewable Energy Implementing Agency – REIA)
– **Purpose of Petition:**
1. To seek approval from the DERC for the procurement of **120 MW of Firm & Dispatchable Renewable Energy (FDRE) Power**.
2. To have the **Power Sale Agreement (PSA)** , executed between NDMC and NHPC Ltd. on **July 25, 2025**, formally taken on record by the Commission.
– **Legal Basis:** The petition is filed under several provisions of the Electricity Act, 2003:
– **Section 86(1)(b):** Regulating electricity purchase and procurement processes of distribution licensees.
– **Section 86(1)(e):** Promoting co-generation and generation of electricity from renewable sources.
– **Section 61(h):** Tariff regulations, which encourage efficient and economical use of resources.

#### 2. What is FDRE Power?

Firm and Dispatchable Renewable Energy (FDRE) power represents a significant evolution in renewable energy procurement. Unlike traditional solar or wind power, which is intermittent, FDRE power is designed to be reliable and schedulable. It typically combines renewable energy sources (solar, wind) with **Energy Storage Systems (ESS)** to provide a steady, firm power supply that can be dispatched as needed, similar to a conventional thermal power plant but with a much lower carbon footprint.

#### 3. Key Issue Raised by the Commission: Resource Adequacy

– **The Query:** During the hearing, the Commission posed a critical question to NDMC. It observed that NDMC’s proposed power procurement appears **”not inconsonance with the resources adequacy plan of CEA.”**
– **What is Resource Adequacy?** Resource Adequacy (RA) refers to the planning process undertaken by utilities and system operators to ensure there is enough generation capacity to meet the forecasted peak demand and energy requirements, considering potential outages and variable renewable generation. The CEA (Central Electricity Authority) is responsible for issuing guidelines and plans for resource adequacy at the national and regional levels to ensure grid reliability.
– **The Concern:** The DERC’s query suggests that NDMC’s proposed 120 MW FDRE procurement might not be properly aligned with or integrated into the broader, approved resource adequacy framework. This is a crucial regulatory consideration, as all distribution licensees’ procurement plans must collectively ensure the overall reliability of the power system.

#### 4. Current Status & Commission’s Directives

– **Hearing of 13.02.2026:** The Learned Counsel for NDMC appeared before the DERC Coram.
– **Commission’s Order:** The Commission directed NDMC to file a detailed **affidavit**.
– **Content of the Affidavit:** The affidavit must clarify the discrepancy between NDMC’s proposed procurement and the CEA’s Resource Adequacy Plan. NDMC needs to explain why its procurement quantum or structure does not match the approved plan and how it still fits within the overall resource adequacy framework.
– **Timeline:**
– **Affidavit Submission:** NDMC must file the affidavit within **two weeks**.
– **Next Hearing:** The case will be listed again after **four weeks**.

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