Rihand Floating Solar Project Hobbles Ahead, With UPERC Approval On Tariffs

• The UPERC approval was postponed due to technicalities, covid hold-ups and obviously, the CERC shutdown in 2015.
• The toll approval is a vital milestone for a huge project, and one hopes this trademark floating solar project will ultimately relocate much faster now, virtually 3 years after victors were introduced.

Prepare for a floating solar project, completing 150 MW on the Rihand storage tank (connected to Rihand Dam) have actually ultimately crossed a crucial landmark, with the UPERC (Uttar Pradesh Electrical Energy Regulatory Commission) ultimately authorizing the same, although not without some mild admonitions to SECI. The order was dated July 30, 2021, and also submitted later to the UPERC website. Visitors will certainly keep in mind that also as approvals move at one regulatory authority, one of the designers, SP team, has currently applied for its withdrawal from the project and cancellation of PPA.

The project tender was first floated by SECI on September 6, 2018, followed by an expansion in target date from Sept 28 to Octo 25 in the exact same year. When quotes received were lastly opened up, there were just two prospective buyers that certified, Renew Power, and also Shapoorji Pallonji Infrastructure Funding Business Private Limited. An e-reverse public auction adhered to on November 27, when the two can be found in with bids of Rs 3.30/ kWh and also Rs 3.29/ kWh. At some point consenting to a typical figure of Rs 3.29. However, with SP Team bidding process for just one bundle of 50 MW, the UPERC obtained included early, to approve ReNew's bid for 100 MW (the staying 2 packages), as the typical demand is for a minimum of two bidders. Hence, after an application submitted in April 2019 for authorizing the exact same, a PSA (power Sales Arrangement) was lastly signed in between UPPCL (Uttar Pradesh Power Company Limited) and also SECI in September 2019, complied with by the letter of award to both 'victors'.

A fascinating addition here was the requirement for the developers to pay Rs 0.05/ kWh power charges to UPJVNL as lease costs for the water body for the life of the project, and a further Rs 0.02/ kWh to UPJVNL on regular monthly basis for the ultimate expense of taking apart the project after 25 years if called for.

Now the tariff adoption appropriately went to CERC, and over the subsequent year, had the ability to lastly identify that the project, being located in UP and all power also being sold in UP, is a fit situation for toll approval by UPERC only. Part of the hold-up was likewise as a result of the fact that the CERC was effectively shit down by the SC during part of this period.

The commission was dissatisfied with SECI for not taking its approval for the single proposal circumstance, and taking post facto approval. Likewise, the change in minimal capacity bidding norms to 25 MW was not taped along with UPERC approval, something that earned SECI yet an additional prompting to adhere to standards. At some point, the compensation has actually accepted the petition, along with SECI's 7 paise margin. PPA, PSA, and also toll approvals done, it continues to be to be seen when the very first device of power from the Rihand floating solar ultimately flows. If done quickly enough, the project will be the biggest floating solar projects at a solitary place in India and the world even. Though some bigger projects have additionally gotten in the battle royal ultimately that should begin coming online from 2023 onwards.