| Work Detail |
The Central Electricity Regulatory Commission (CERC) recently addressed petitions concerning the tariff determination for a 92 MW floating solar photovoltaic plant at the Rajiv Gandhi Combined Cycle Power Project (RGCCP) in Kayamkulam, Kerala. The petitions were filed by the Kerala State Electricity Board Limited (KSEBL) and NTPC Limited. KSEBL is a state public sector power utility involved in the generation, transmission, and distribution of electricity. NTPC is a generating company that operates power stations across India, including the RGCCP in Kayamkulam. The CERC’s involvement was required to fix the final tariff for the floating solar plant. This process was initiated following a Memorandum of Understanding between KSEBL and NTPC in 2018 to explore setting up renewable power generation projects in Kerala. NTPC subsequently conducted bidding processes to select contractors for the project, which was developed in two phases. While the project was tendered in two phases, a single Power Purchase Agreement (PPA) was signed between KSEBL and NTPC. The PPA outlined that the tariff would be based on the EPC (Engineering, Procurement, and Construction) cost determined through competitive bidding, with a specific tariff agreed upon for the energy supplied. The Kerala State Electricity Regulatory Commission (KSERC) initially granted provisional approval to the PPA but directed that the final tariff determination fell under the purview of the Central Commission. The CERC then determined an interim tariff for the project, allowing NTPC to seek a final tariff determination upon project commissioning. KSEBL raised concerns regarding the final tariff, particularly disputing the inclusion of costs for a motorable road that was not constructed. KSEBL argued that the road was unnecessary and that alternative, more economical solutions should be considered. NTPC, while seeking the final tariff determination, cited delays in the project’s commissioning due to unforeseen events like the COVID-19 pandemic and local issues. NTPC argued for the inclusion of these costs, citing the necessity for proper access and security. |
