| Work Detail |
In a recent development, a solar power project owner (J. K. Lakshmi Cement Limited) has filed a petition seeking payment for the electricity injected into the grid from April 1, 2019, to March 31, 2022. The petitioner, who established a 6 MW solar power project in Rajasthan, entered into a Power Purchase Agreement (PPA) with the Jodhpur Discom in 2013. Initially valid until March 31, 2016, the agreement was extended until March 31, 2019. However, a regulatory order in March 2019 fixed the tariff for the remaining useful life of the projects, leading to a delay in signing the PPA.
Despite a decision by the Coordination Committee of the Discom to sign the PPA at the specified rate, the Discom did not follow through. This prompted the petitioner to file a writ petition before the High Court, seeking to quash the regulatory order and amendments and compel the Discom to sign the PPA. During this period, the petitioner also sought permission to shift the project from the Renewable Energy Certificate (REC) mechanism to captive use.
While the High Court directed the Discom to sign a joint meter reading to record power generation, the petitioner opted to convert the project to captive use. The petitioner withdrew the writ petition after reaching an agreement with the Discom and filed an application for withdrawal, which was accepted by both the High Court and the Discom.
The project was eventually converted to captive use, and the petitioner submitted the required undertaking for the shift. However, the Discom, in processing the request, directed the petitioner to withdraw the case before the High Court and accept certain terms and conditions. Despite complying with these requirements and obtaining a No Objection Certificate for captive use, the petitioner claims it has not received payment for the power injected from April 1, 2019, to March 31, 2022.
In response, the Discom argues that payment can only be made under a valid PPA, which the petitioner did not have after March 31, 2019. The Discom contends that the petitioner cannot claim parity with other renewable energy generators who withdrew their petitions and signed new PPAs with the Discom. The Discom further asserts that the petitioner’s case is different, and it is not entitled to payment on the grounds of parity.
The petitioner, in its rejoinder, highlights that it received directions from the Rajasthan Renewable Energy Corporation Ltd. (RRECL) to submit an undertaking accepting the decision of the Coordination Committee. The petitioner argues that it has fulfilled all necessary conditions and expectations for payment have been conveyed to the Discom through various communications.
The regulatory commission, after considering the submissions, notes that the PPA between the petitioner and the Discom had expired, but the petitioner continued to inject power into the grid based on a court order. The commission observes that the project was converted to captive use from April 1, 2022, and no payment was received for the power injected until March 31, 2022.
During the final arguments, the Discom expresses willingness to pay for the power injected from April 1, 2019, to March 31, 2022, but disputes the rate specified by the Coordination Committee. The commission, after reviewing the correspondence between the parties, concludes that the petitioner is eligible for the specified rate without late payment surcharge or interest. The commission directs the Discom to pay the petitioner within 90 days from the date of the order and clarifies that the petitioner shall not claim Renewable Energy Certificates for the injected power, which will be used for the Discom’s Renewable Purchase Obligation fulfilment. The matter is considered resolved without any cost orders. |
