Power Purchase Agreements of most of HEPs yet to be renewed: JERC

Gap in design energy, actual generation noticed

*Directs for expeditious completion of R&M of projects

Mohinder Verma

JAMMU, Oct 13: Joint Electricity Regulatory Commission (JERC) for the Union Territory of Jammu & Kashmir and Union Territory of Ladakh has conveyed its concern to Jammu and Kashmir Power Development Corporation about inordinate delay in renewal of Power Purchase Agreements (PPAs) of Hydroelectric Projects (HEPs). Moreover, the Commission has sought detailed report about gap in actual generation and design energy approved for the respective plants.
While dealing with Tariff Petition of Jammu and Kashmir Power Development Corporation Limited (JKPDCL), the JERC had observed that Power Purchase Agreements (PPAs) of most of the Hydroelectric Projects have expired and some PPAs have not been executed. Accordingly, the Commission had directed the JKPDCL to execute PPAs and submit the same before the Commission for approval.
In response to the observation of JERC, the JKPDCL has replied that renewal of PPA has been taken up with the Government and is under process. Follow up for renewal of PPA is being done and Commission will be informed accordingly when PPAs are renewed.
Now, while deciding the Tariff Petition, the JERC has noted: “There is almost no progress in one year time period. The JKPDCL is advised to review it on monthly basis and furnish compliance report”.
The JERC has also observed that actual generation reported by JKPDCL for all Hydroelectric Projects is substantially lower than the design energy approved for the respective plants. “The cumulative design energy of all Hydroelectric Projects doesn’t provide the actual performance of individual project”, the Commission said while directing JKPDCL to submit a detailed report in this regard as early as possible.
However, JKPDCL has claimed that if the cumulative design energy of all Hydroelectric Projects is taken into account, the actual energy generation of all Hydroelectric Projects is at par with the cumulative design energy. But due to low water availability actual generation is lower than design energy for some projects.
About performance improvement measures, the JKPDCL had conveyed to the JERC that it is contemplating to hire IIR Roorkee as a consultant for carrying out performance improvement measures of all the Hydroelectric Projects of Corporation. However, the Commission has observed, “no report has been submitted by JKPDCL as such the petitioner is directed to expedite the process and submit report in this regard at the earliest”.
The JERC has also directed the JKPDCL to review the progress made in Repairs and Maintenance (R&M) of the projects on monthly basis as status report about R&M of old projects was not up to its satisfaction.
The RMU of Chenani-I powerhouse was started in 2010 but has not been completed so far. Similarly, the RMU/R&M of Chenani-II has been approved but work has not been started till date. The RMU of Chenani-III was started in 2016 but the work is still pending.
The final DPR for RMU/R&M of the Bhaderwah powerhouse is pending with IIT Roorkee. In respect of Sewa-III, IIT Roorkee has submitted the final DPR for RMU/R&M of the powerhouse but the final approval is pending.
Observing that JKPDCL has submitted the true-up petition without audited accounts, the JERC has directed the petitioner to expedite the process and submit the audited account after completing the necessary process. “Managing Director of JKPDCL should review the progress in this regard on monthly basis as without the audited accounts the Commission cannot approve the expenses submitted by the petitioner”, read the directive of JERC.
Pointing towards the earlier directive regarding detailed study with regard to plant-wise Normative Annual Plant Availability Factor as per the provisions of the Central Electricity Regulatory Commission Tariff Regulations, 2019, the JERC has observed, “no progress has been made by JKPDCL as such the petitioner is directed to expedite the progress and submit the status report in this regard at the earliest”.