CERC Order Offers Clarity On Sale of Infirm Power In Delayed Hybrid Projects

The Central Electricity Regulatory Commission (CERC) has allowed TP Saurya Ltd. to continue selling infirm power generated from the 100 MW solar component of its 600 MW wind-solar hybrid project to third parties, holding that the company cannot declare the commercial operation date (COD) of the standalone solar unit since the Power Purchase Agreement (PPA) does not permit commissioning of a single component of the hybrid project. The order stems from delays in the operationalisation of the Gadag-II transmission substation, which prevented commissioning of the project's 200 MW wind component despite the 100 MW solar project being technically ready. TP Saurya had approached the Commission seeking an extension for the injection of infirm power beyond the period allowed under the Indian Electricity Grid Code (IEGC), 2023. Background of the case The company is developing a 600 MW hybrid project comprising 400 MW of solar and 200 MW of wind capacity under a Solar Energy Corporation of India (SECI) tender. While the 100 MW solar component at Bikaner, Rajasthan, received first-time charging approval on April 24, 2024, and successfully completed its trial run, the associated wind component at Gadag, Karnataka, could not be commissioned due to delays in the readiness of the Gadag-II pooling substation. As a result, SECI extended the project's Scheduled Commercial Operation Date (SCOD) to February 24, 2026, or two months from the actual start date of connectivity, whichever is later. In its order, CERC observed that the PPA and the Request for Selection (RfS) contain two distinct provisions relating to commissioning. While the PPA bars declaration of COD for a single component of the hybrid project, the RfS permits injection and sale of power from a ready component outside the PPA until commissioning conditions are fulfilled. "In view of the express provisions under the PPA, the Petitioner is not entitled to declare the COD of the 100 MW solar component of its project, which is already ready," the Commission said. Developers Allowed To Sell Infirm Power The Commission further ruled that TP Saurya would be allowed to sell the infirm power from the 100 MW solar component of its hybrid project to any third party outside the PPA till the date of part or early commissioning of the project under the PPA. It also rejected the contention of buying entities MPSEZ Utilities Ltd. and CESC Ltd. that they retained the first right of refusal under the prevailing circumstances, noting that the PPA does not provide for commissioning of a single component of the hybrid project. While granting relief to the developer, the Commission also advised SECI to ensure that future PPAs clearly incorporate relevant provisions contained in the RfS to avoid similar disputes. It observed that better alignment between bidding documents and contractual agreements would help provide greater clarity on commissioning and sale of power from hybrid renewable energy projects facing transmission-related delays.