Proposed Amendments In Model Power Purchase Agreements For Solar Projects In Himachal Pradesh

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued an order in the matter of Amendment in Model Power Purchase Agreement (PPA) for Solar PV Power Project(s) in the State of Himachal Pradesh.

The Commission has finalized a Model Power Purchase Agreement (PPA) for solar PV power projects on February 2, 2016. This agreement, known as the “Principal Model PPA,” aims to facilitate long-term power purchase between Distribution Licensees and solar power developers for up to 25 years, with tariff options tailored to projects up to 5.00MW.

Following the notification of HPERC (Promotion of Generation from Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017, the Commission recognized the need to clarify the Principal Model PPA for smoother implementation of its terms and conditions.

The Indian Electricity Grid Code, released by the CERC in 2023, proposes guidelines on commissioning and operating projects. It outlines procedures for Trial Runs and Commercial Operation notices.

Additionally, stakeholders proposed changes to specific clauses of the Principal Model PPA. The Commission proposes amendments to the Principal Model PPA for solar PV power
generation.

The Amendments include the following substitution of following clauses:

  1. “Independent Engineer” means the consulting engineer or firm appointed jointly by the Company and the HPSEBL for Synchronization and Trial Run, at least one month before the planned Synchronization date.
  2. “Scheduled Commercial Operation Date of the Project” means the date scheduled by the Company for achieving Commercial Operation of the Project according to its Construction Schedule.
  3. The amendment defines the Synchronization process, conducting Trial Runs, and interim arrangements for power evacuation and also proposed regarding generation loss and miscellaneous provisions for Solar PV projects up to 5 MW capacity, aligned with regulatory guidelines.

Any objections or suggestions should be addressed to the Secretary, Himachal Pradesh Electricity Regulatory Commission, Vidyut Aayog Bhawan, Block37, SDA Complex, Kasumpti, Shimla -171009 by July 10, 2024.

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