The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected the appeal by wind and solar energy developers to roll over the time-frame for adjusting excess power generation.
Under normal circumstances, wind energy consumers utilise the power generated from their captive power plants and bank the unutilised energy every month which is carried over till the end of March of a financial year.
At the end of the financial year, the unutilised banked energy is sold to Tangedco at 75% of applicable tariff fixed by TNERC. In case of wind projects commissioned from April 1, 2018, the banking facility is for a period of one month.
In case of solar power, the unutilised energy is sold at 75% of applicable tariff at the end of each billing period.
In three separate petitions, New Delhi-based National Solar Energy Federation of India, Coimbatore-based Southern India Mills Association and Dindigul-based Tamilnadu Spinning Mills Association had sought relief in terms of extending the period of banking the energy as they could not utilise the energy due to the lockdown imposed to curb COVID-19.
The petitioners requested the regulatory commission to treat COVID-19 as a force majeure and permit carry forward of unutilised energy generated during the period of closure of the industries.
“A force majeure clause in the contract exempts both parties from their contractual liability or obligation when prevented by such an unforeseeable event from fulfilling their obligations. What is sought here by the petitioners is a concession to allow extended period of banking,” TNERC said.
The energy purchase and energy wheeling agreements are between the generator and the distribution licensee, where both are the affected parties due to the pandemic, it added.
TNERC also noted that Tangedco’s revenues have also been affected by the pandemic.
“When the whole country has been suffering economically, particularly weaker section of the society and every citizen is sharing the economic distress of the nation proportionate to their standard of living, it is not only unreasonable but unconscionable and unethical on the part of the petitioners to claim such benefits involving public exchequer as in the prayer specially when the Commission has already allowed them to pay 20% minimum demand charges during the pandemic period,” TNERC replied.
