After a review, the state government offered to pay Rs 2.44 per unit for wind and solar power, compared to an average wind energy tariff of Rs 4.8 per unit for existing PPAs until the problem is resolved. 1. As mentioned in the report of the Energy Working Group and in the “Power for all" agreement, the heat production capacity of the State at the time of the creation of the State was 2282 MW, and the plan was to add 6840 MW of State thermal capacity in 5 years In a governmental order, the government said the state`s electricity distribution companies (DISCOM) were going through a financial crisis. and one of the main reasons for this was the higher rates in wind and solar PPAs. RK Singh, Minister of State for Energy and New and Renewable Energy, has written to the state government asking it not to terminate the agreements and to comply with them. Jagan, however, remained defiant. As such, the TSERC approved the provisional tariff (adopted by the CSERC 2016 Ordinance) and proposed amendments to certain clauses of the PPAs. These included the change of the effective date (start of the EFA) for the commissioning of the transport corridor, the limitation of fixed charges to the capacity of the corridor, the change of the delivery point at the Chhattisgarh transmission station and the flexibility of Telangana in the distribution of the share among its DISCOM. The CSPDCL has renounced the electricity tax and the trade margin.

It is up to the legal experts to comment on whether TSERC`s argument regarding the pricing of a cost-plus project that sells electricity to The Discom of Telangana with a 12-year PPA is correct. But from the point of view of consumer interests, this case poses many challenges. MTPS` power purchase began in May 2017 and, as shown in Table 1, almost all of the electricity generated by the plant was purchased in FY18. However, purchasing has declined over the years, with only half of the electricity purchased during the ef20. But the MYT petitions for the fourth control period (FY20 – FY24) submitted by the telangana transport company still plan to contract the entire 1000 MW capacity of MTPS to FY24. A clear picture will only emerge when Telangana`s DISCOM submits requests for retail supply tariffs. However, after December 2017 to June 2020, there were no registrations. IHCL has signed a Solar Power Purchase Agreement (PPA) with TP Kirnali Solar Ltd., a wholly-owned subsidiary of Tata Power Company Ltd. Shortly after the release of the GO on July 1, the Jagan government issued another order. “Cancel all wind, hybrid and experimental power purchase agreements that are in the works – unsigned or not approved by the AP`s Electricity Regulatory Commission (APERC)," he said. And why? On July 1, Jagan said he would review and renegotiate power purchase agreements (PPAs) made during the Naidu era.

PPAs are agreements between a company that produces electricity and a pantograph. In fact, the government is trying to withdraw 21 PPAs with renewable energy companies. One of the controversial contracts is that of SB Energy, a joint venture between Japanese companies Softbank, Foxconn and Bharti Airtel. Last month, Trade Union Energy and Renewable Energy Minister RK Singh told reporters and industry stakeholders that the projects had been launched before 1. A “grandfathering" clause that would have allowed renewable energy companies to claim reimbursement of customs duties they paid when importing equipment from China. The Government of Andhra Pradesh had ordered the review and renegotiation of existing PPAs between electricity distribution companies (Discoms) and wind and solar energy suppliers in 2019. The government order noted that discoms in the state were in financial crisis and had significant unpaid fees, and that “one of the main reasons for this is the problem of contracts concluded in recent years for the purchase of wind and solar energy at unusual prices." DiscoMS` dissatisfaction in Andhra Pradesh began even before Jagan took office earlier this year. In February, Southern Power Distribution Company of Andhra Pradesh Limited and Eastern Power Distribution Company of Andhra Pradesh Ltd filed an application with the Andhra Pradesh Electricity Regulatory Commission (APERC) regarding PPAs signed before 31 March 2017. They wanted to be able to change and lower the tariffs. The PPAs were signed for 25 years, which DISCOMS also wanted to reduce to five years. In 2017, the discoms wanted to sign agreements at a lower rate. The Andhra government at the time wrote to DISCOMS asking them to comply with the treaties, saying the situation would “create an atmosphere of uncertainty." Finally, it is important to rigorously forecast the load and plan the purchase of electricity before signing the long-term PPAs.

Excess electricity and costly expansion of thermal capacity are the result of non-use. Given the current situation of rapid changes in renewable energy and storage, as well as in market operations, it is also important to regularly review these plans. The absence of such planning can lead to a freeze on resources, as is already happening in many other States. In addition, there was also a delay in the publication of tariff orders by TSERC, as Telangana DISCOM did not submit tariff applications after December 2017 until the time of writing this report, i.e. July 2020. It is therefore difficult to examine the progress made in the purchase of electricity from MTPS by the Discom of Telangana, the actual payment they have made and the possible sale of excess electricity by MTPS. The websites of the Telangana Transmission Company or DISCOM do not publish it. Telangana Load Dispatch Center, unlike many other states, does not have a separate website. National portals such as PRAAPTI display DISCOM fees to producers, but not to traders or other state DISCOM. 8. The CSPGCL`s response to the CSERC in December 2018 indicated that under the CSERC MYT Regulations, 2015, shareholders in Chhattisgarh could participate. It also noted that CSPGCL did not have an agreement with the Telangana DISCOM.

Given that the two PPAs – the first between the CSPGCL and the CSSPDCL and the next between the CSSPCL and the Telangana DISCOM – are separate agreements, it was found that the APA between the CSPGCL and the CSPDCL is not a consecutive agreement. The CSPGCL was not at all aware of the APP entered by TSSPDCL with the CSPDCL. The contract between CSPDCL and TSSPDCL is not a resale (trade) contract, but an independent purchase contract. All this is surprisingly completely contrary to the position taken by the CSSPDCL in its PPA with the Discom of Telangana and its tariff petitions to the CSERC Although the MTPS units are expected to be commissioned in 2012, they have had to face significant delays and were only put into service in 2016. .