Solar Energy Corporation Of India … vs Delhi Electricity Regulatory … on 2 July, 2021
The appellant in each matter is Solar Energy Corporation of India Limited (for short, “SECI” and also variously referred to hereinafter as “the appellant” or “the trader” or “the trading licensee”). It is a Government of India Enterprise and a company incorporated under the provisions of the Companies Act. It (SECI) is designated as the inter-State Trading Licensee, the Intermediary Nodal Agency for implementation of the schemes of the Government of India for developing grid connected solar power capacity in the country including schemes for setting up of Inter- State Transmission System (ISTS) connected Solar/Wind/Wind-Solar Hybrid Power Projects. One of the main objectives of SECI is to assist Government of India and function as the implementing and facilitating arm of National Solar Mission (NSM) for development, promotion and commercialization of solar energy technology in the country. SECI has been granted the Inter-State Trading License under the Electricity Act, 2003 by the Central Electricity Regulatory Commission (for short, “CERC” or “the Central Commission”). It (SECI) has been entering into Power Purchase Agreements (“PPAs”) with the Solar (or Hybrid) Power Developers. The electricity procured by SECI under the PPAs is for onward sale on back-to-back basis to the buying utilities or distribution companies under the Power Sale Agreements (“PSAs”).
18. On 03.08.2017, the Ministry of Power (“MoP”), Government of India notified the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects (for short, “Guidelines dated 03.08.2017”), the following part being relevant for present discussion:
“2. SCOPE OF THE GUIDELINES …
Explanation:
…….
c) ‘Intermediary Procurer’ & ‘End Procurer’: i. In some cases, an intermediary, between the distribution licensees and the generator (‘Solar Power Generator’), may be required either to aggregate the solar power purchased from different Solar Power Generators and sell it to the distribution licensee, or to enhance the credit profile. In such cases, the “Procurer” would be a trader, buying power from the Solar Power Generators and selling the same to one or more distribution licensees, such distribution licensees shall be the “End Procurer” and the trader shall be “Intermediary Procurer” for the purpose of these Guidelines.
iii. In such cases, as long as the Intermediary Procurer has followed these Guidelines for procurement of solar power, the End Procurer shall be deemed to have followed these Guidelines for procurement of solar power.”
(Emphasis Supplied)
19. In terms of the above Guidelines, SECI had initiated Competitive Bid Process for selection of the Solar Power Developers (SPDs) to establish the solar power projects, generate and supply solar power to SECI to enable SECI to supply the same to the Buying Utilities / Distribution Companies to enable them to fulfill the Renewable Purchase Obligation (RPO) specified by the Appropriate State Commission.
(Emphasis Supplied)
32. In pursuance to the above competitive bid process, SECI proceeded to select the Solar Power Developers (“SPDs”) for establishing Solar Power Projects and for supplying Solar power to enable SECI to make available such power to the Buying Utilities/Distribution Companies.
33. On 01.03.2019, DERC passed two orders. By first of the said orders (in Petition no.24 of 2019 of TPDDL), approval was granted to the procurement of 20 MW solar power along with Trading Margin of Rs.0.05/kwh under the PSA dated 16.10.2014 executed between TPPDL and SECI for 25 years. By the second order of same date (01.03.2019), DERC allowed (in the Petition no.25 of 2019 of TPDDL) approval to the procurement of 100 MW solar power along with Trading Margin of Rs.0.07/kwh under the PSA dated 06.09.2018 executed between TPPDL and SECI for 25 years.
Source : indiankanoon
