The Solar Energy Corporation of India (SECI) had auctioned 970 MW of grid-connected solar PV projects under the government’s viability gap funding (VGF) program back in 2016. They had auctioned 13 solar projects totaling 970 MW at a tariff of ₹4.43/kWh.
When SECI filed the approval petition for power sale agreement (PSA) to be executed between SECI and Karnataka distribution companies, Bangalore Electricity Supply Company (BESCOM) raised its concern about the tariff of ₹4.50/kWh which was quoted by SECI in the PSA, but was not the tariff discovered in the auction.
SECI approached Appellate Tribunal for Electricity (APTEL) as the tariff discovered in the auction was ₹4.43/kWh, which was ₹0.07/kWh more than the tariff fixed by Karnataka Electricity Regulatory Commission KERC (₹4.36/kWh) for the sale of power from the solar PV projects.
The APTEL, after considering SECI’s appeal, fixed an interim tariff of ₹4.50/kWh for the procurement of power from the solar PV projects. The APTEL has put a stay on the KERC order for now.
Reference- Mercom India