Approval of Torrent Energy’s enchantment for modifications to the “ drive majeure ” and “ change of legislation ” clauses



The Gujarat Electrical energy Regulatory Fee (GERC) accepted the modifications requested by Torrent energy the “ drive majeure ” and “ change of legislation ” clauses within the draft electrical energy buy contract (PPA) for the acquisition of electrical energy from photo voltaic initiatives linked to the grid for the conclusion of its renewable power buy obligation (RPO) targets.

Nonetheless, the Fee refused to approve any deviation from the “commissioning schedule” in violation of the rules of the Ministry of Vitality.

Background

In August 2017, the Division of Vitality printed pointers for the aggressive tariff-based tendering course of for grid-connected photo voltaic PV initiatives underneath which clause 5.4 referred to definitions drive majeure, exclusions, applicability and aid obtainable.

In November 2019, the Ministry of New and Renewable Energies (MNRE) printed amendments to its pointers on the tendering course of, defining the categorization of circumstances of drive majeure underneath pure and unnatural occasions and exclusions. .

“ Drive majeure ” provisions

The Fee mentioned that in keeping with the draft CAE, neither occasion can be in breach so long as the efficiency of its obligations is delayed because of a drive majeure occasion and there will probably be no adjustment. of the tariff. As well as, the idea of accountability for challenge belongings and the appointment of one other occasion to keep up and function the belongings had been usually the accountability of banks and monetary establishments.

The Fee agreed with Torrent Energy’s feedback that the “drive majeure” provisions within the current pointers had been broad and much reaching. Specifically, the termination provisions present a possible exit path to the producer by transferring the dangers of the challenge to patrons and finally to shoppers. This might give rise to circumstances by which the producer might terminate the PPA. In such circumstances, the curiosity of patrons can be affected. Due to this fact, the electrical energy purchaser shouldn’t be burdened with the termination fee and taking up the challenge when there is no such thing as a default on the a part of the electrical energy purchaser.

Change of legislation

The state regulator additionally said that Torrent Energy had requested the modification of clause 9.1.1 (b) with “Introduction / modification / modifications within the charges of any tax / responsibility / cess / surcharge on the import of solar energy gear which has a direct impact on the price of the challenge ”as a substitute of the present clause“ Introduction / modification / modification of the charges of safeguard responsibility and anti-dumping responsibility which has a direct impact on the price of the challenge ”.

The developer had additionally requested the Fee so as to add in aid the clause 9.2.2, “This improve or lower within the tariff because of this modification of the price of the photovoltaic modules will probably be restricted to the precise DC capability or to 150% of the AC capability. underneath contract, whichever is decrease. . “

The Fee famous that the petitioner had supplied for separate aid clauses for “ altering the legislation ” whereby, in accordance with clause 9.1.1 (a), leading to a lower or improve of 1% of estimated revenues for the contract yr for which this adjustment turns into relevant, the tariff paid to the ability producer will probably be elevated or decreased as applicable with the approval of the GERC.

Likewise, within the occasion of a “ change of legislation ” ensuing from clause 9.1.1 (b), the petitioner had proposed that the ability producer be allowed to extend or lower the tariff by ₹ 0.01 (~ 0.0001 USD) / kWh. for each ₹ 200,000 (~ $ 2,723) / MW improve or lower in the price of the challenge.

Torrent Energy had additional proposed that such a rise or lower in tariff because of the change in the price of PV modules be restricted to precise DC capability or 150% of contracted AC capability, whichever is much less.

The Fee accepted the modifications proposed by Torrent Energy to the “change in legislation” clause.

Commissioning schedule

The prevailing pointers supplied that for the delay in commissioning of as much as six months from the deliberate date of economic operation (SCOD), the gathering of the efficiency financial institution assure can be made every day and proportional to the non-commissioned capability.

The petitioner had proposed an identical clause concerning the delay in commissioning as much as six months of SCOD within the PPA. Torrent Energy proposed to cut back the capability of the commissioned challenge to SCOD plus six months and terminate the PPA for the balancing capability for the delay in commissioning past six months.

The regulator mentioned giving sole discretion to the customer to determine whether or not to make use of balancing capability that isn’t commissioned inside six months of SCOD is probably not affordable. As well as, the petitioner, as a distribution licensee, should undertake a tendering course of to obtain long-term renewable power as a way to adjust to its RPO. Due to this fact, any stranded capability that isn’t totally commissioned throughout the SCOD interval plus six months might result in failure to satisfy RPO targets.

Nonetheless, the Fee refused to authorize the requested modifications to the commissioning schedule.

In January final yr, the GERC accepted modifications to the Vitality Ministry’s pointers for “drive majeure” occasions, as requested by Gujarat Urja Vikas Nigam Restricted.

Mercom beforehand reported that GERC had accepted waivers to bidding pointers for buying electrical energy from photo voltaic initiatives linked to the grid by Torrent Energy.

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