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134112, HARYANA Case No. HERC/PRO-20 O

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134112, HARYANA Case No. HERC/PRO-20 O BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION BAYS No. 33-36, SECTOR-4, PANCHKULA- 134112, HARYANA Case No. HERC/PRO-20 of 2019 Date of Hearing : 25.04.2019 Date of Order : 30.04.2019 In the Matter of Petition under Section 86(1)(b) of Electricity Act for approval of Source and draft PPA to be signed with the proposed generator for purchase of aggregate 11.4 MW power biomass based power from M/s Sainson Paper industries Pvt. Ltd., M/s Haryana Liquors Pvt. Ltd., M/s Cleantech Power LLP and MOR Bio Energy Pvt. Ltd. on long term basis. Petitioner Haryana Power Purchase Centre (HPPC) Respondents 1. M/s Sainson Paper industries Pvt. Ltd. SCO-221, 1st Floor, Sector-10 Kurukshetra. 2. M/s Haryana Liquors Pvt. Ltd., SCO, 140-141, Sector-34-A, 3. M/s Cleantech Power LLP, ICL, 7th Floor, Building 9-B, Cyber City, DLF Phase-III, Gurugram 4. MOR Bio Energy Pvt. Ltd., Village Ludana, Tehshil- Safidon District- Jind- 126102. Present On behalf of the Review Petitioner 1. Shri Vikas Kadian, XEN/HPPC 2. Shri Randhir Singh, AEE/HPPC 3. Shri Vikrant Saini, AEE/HPPC 4. Shri Ravi Juneja, AEE/HPPC Present On behalf of the Respondents 1. Shri Jagannath Saha for M/s. Sainson Paper industries Pvt. Ltd. 2. Shri Anil Sharma for Sainson Paper industries Pvt. Ltd. 3. Shri Varun Malik for M/s Cleantech Power LLP. Quorum Shri Jagjeet Singh, Chairman Shri Pravindra Singh Chauhan, Member ORDER Brief Background of the Case 1. The present petition has been filed by Haryana Power Purchase Centre (HPPC) seeking source approval for purchase of power from the Respondents 1 | P a g e at lowest tariff amongst the offered tariff, HERC generic tariff and the project specific tariff to be determined by HERC under section 62 of Electricity Act, 2003 on the tariff petition to be filed by the developers and allow HPPC to sign the PPA with the proposed generators. 2. Haryana Power Purchase Centre (HPPC) has submitted as under:- i. That, the Haryana Renewable Energy Development Agency (hereinafter referred to as ‘HAREDA’) i.e. State Designated Agency for promotion of Renewable Energy in the State in terms of powers conferred by Policy for Promoting Generation of Electricity through Renewable Energy Sources notified vide notification no. 22/69/2005-5P dated 23.11.2005 considered the Detailed Project Report (DPR) submitted by the following developers/generators and accorded in-principle approval/issued Letter of Intent (LOI) to developers for setting up of their generation facility:- Sr. Name of Project Nature Project Capacity Date of LOI No of Capacity Offered for issued by Project (MW) sale (MW) HAREDA 1 M/s Sainsons Paper Biomass 5.0 3.5 02.01.2018 Industries Pvt. Ltd., Village Co-gen Bhakli, Distt. Kurukshetra. 2 M/s Haryana Liquors Pvt. Biomass 9.9 4.7 02.01.2018 Ltd., Village Jundla, Distt. Co-gen Karnal. 3 M/s Cleantech Power LLP, Biomass 2.0 2.0 11.07.2018 Village Nangthala, Distt. Gasifier Hisar 4 MOR Bio Energy Pvt. Ltd., Biogas 1.2 1.2 17.10.2018 Village Morkhi, Distt. Jind. based Total 18.1 11.4 ii. The above proposals were forwarded by HAREDA to HPPC for consideration and entering into PPA with the developers on the tariff fixed/decided by the HERC. iii. That, the HPPC considered all the above bio-mass based projects forwarded by HAREDA. The projects were discussed and deliberated in detail in a joint meeting of HPPC & HAREDA on 02.01.2019 wherein, in order to safeguard the interest of DISCOMs as well as the developers, it was decided to convene a joint meeting of HPPC & HAREDA with the proposed developers for obtaining their consent to accept lower of HERC generic tariff and the project specific tariff to be determined by HERC under section 62 of Electricity Act, 2003. iv. Accordingly, a joint meeting of HPPC & HAREDA with the proposed developers was convened on 14.01.2019 wherein the developers i.e. M/s Sainsons Paper Industries Pvt. Ltd., M/s Haryana Liquors Pvt. Ltd., M/s 2 | P a g e Cleantech Power LLP and M/s. MOR Bio Energy Pvt. Ltd. consented to accept lowest tariff amongst the offered tariff, HERC generic tariff and the project specific tariff to be determined by HERC under section 62 of Electricity Act, 2003 on the tariff petition to be filed by the developers. v. That, the Haryana Power Purchase Centre has been undertaking the instant power procurement for fulfilling the non-solar RPO target set by the Commission to the Haryana Utilities. vi. That, the agenda for procurement of power from above mentioned biomass based generation project along with other biomass projects was put up before the SCPP in its 52nd meeting held on 25.02.2019. The SCPP in its 52nd meeting deliberated the agenda and accorded the approval for procurement of power from M/s Sainsons Paper Industries Pvt. Ltd., M/s Haryana Liquors Pvt. Ltd., M/s Cleantech Power LLP and M/s MOR Bio Energy Pvt. Ltd. for 3.5 MW, 4.7 MW, 2.0 MW and 1.2 MW respectively at lowest tariff amongst the offered tariff, HERC generic tariff and the project specific tariff to be determined by HERC under section 62 of Electricity Act, 2003 on the tariff petition to be filed by the developers and allow HPPC to sign the PPA with the proposed generators. vii. That, the general draft PPA for these biomass based generation project has been prepared and attached with the Petition. viii. Following prayer has been made:- a) To approve the source for purchase of power from M/s Sainsons Paper Industries Pvt. Ltd., M/s Haryana Liquors Pvt. Ltd., M/s Cleantech Power LLP and M/s MOR Bio Energy Pvt. Ltd. for 3.5 MW, 4.7 MW, 2.0 MW and 1.2 MW respectively at lowest tariff amongst the offered tariff, HERC generic tariff and the project specific tariff to be determined by HERC under section 62 of Electricity Act, 2003 on the tariff petition to be filed by the developers and allow HPPC to sign the PPA with the proposed generators; b) Pass such further order or order(s) as may be deemed necessary and fit in the circumstances of the case. Proceedings in the Case 3. The case was heard on 25.04.2019, wherein the Petitioner i.e. HPPC reiterated the contents of its Petition, which for the sake of brevity has not 3 | P a g e been reproduced herein. None of the Respondents raised any objection on the submissions of HPPC. Commission’s Analysis and Order 4. The Commission heard the arguments of the HPPC as well as perused the written submissions filed in the matter. 5. The Commission observed that Section 86(1)(e) of the Electricity Act-2003 mandates the Commission to promote generation of Electricity from Renewable Sources of Energy. 6. In view of the above discussions, the Commission, acceding to the request of the Petitioner, considers it appropriate to approve the proposed source. Tariff shall be decided on the separate petition to be filed by the Respondents under section 62 of the Electricity Act, 2003. The tariff petition shall include DPR approved by HAREDA and all other relevant documents to arrive at the reasonable capital cost and all other tariff components. 7. HPPC is directed to recast the PPA on the basis of the amendment approved in the Order dated 03.04.2019 in case no. HERC/PRO-44 of 2018. HPPC is further directed to ensure that the terms of the PPA are strictly as per the provisions contained in the Haryana Electricity Regulatory Commission (Terms and Conditions for determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2017. 8. The petition is accordingly disposed of. HPPC shall submit a signed copy of the PPA for the record of the Commission within three weeks from the date of this Order. This order is signed, dated and issued by the Haryana Electricity Regulatory Commission on 30th April, 2019. Date: 30.04.2019 (Pravindra Singh Chauhan) (Jagjeet Singh) Place: Panchkula Member Chairman 4 | P a g e .
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