PSPCL to scarp costlier PPAs; serves notices to four power plants
Kanwar Inder Singh/ royalpatiala.in
Punjab state power corporation limited (PSPCL)has finally served a notice of termination of power purchase agreements (PPAs) of total 885.10 MW to four private power generating plants with effect from October 31, 2021 and cancelled the PPAs for all intended purposese.
The plants that have been served notices are Damodar Valley Corporation’s (DVC) Durgapur (200MW share), Raghunathpur (300MW share), Bokaro (200 MW share) and Meja Urja Power Project (85MW share), Pragati Power Corporation Limited.
The PSPCL notice says that the PPAs are not approved by the PSERC. “The PSPCL will not be in position to procure power from the above mentioned generating stations beyond October 31, 2021, and the PPA shall stand cancelled and terminated for all intended purposes,” the notice read.
royalpatiala.in had already informed its reader, about the scrapping of PPAs , by PSPCL in its September 9, 2021 report.
The Punjab State Electricity Regulatory Commission (PSERC) dismissed its review petition that the PSPCL had filed against the regulator denying approval to Power Purchase Agreements (PPAs), done with them, in September 2021.
“PSPCL’s proposal of procurement of 885.10 MW on long-term basis from projects Meja, Pragati-III and DVC’s Raghunathpur, Durgapur & Bokaro Stations at the given per unit price of ₹5.53; ₹4.82; ₹4.61; ₹4.44 and ₹4.39 respectively, would not be an economically viable proposition, particularly so, when much cheaper power is available in the market. As such, it would not be in the interest of consumers of Punjab, if procurement from these stations at the indicated rates is approved. The commission does not think it prudent to permit the same at the indicated prices,” read orders of the commission.
The regulatory body (PSERC) in its September 2021 orders had said “Keeping in view the above facts the Commission finds that the review petition is without any merit and is accordingly dismissed.”
PSPCL to scarp costlier PPAs; serves notices to four power plants. The PSERC said that the PSPCL should buy power at not more than ₹3 per unit, including fixed and variable cost.
PSPCL is going to take historical decision-scrapping PPA’s with power companies
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