New Delhi: The Power Ministry has told the countries that the diskomy (distribution company) has an option to get out of the PPA (Power Purchase Agreement) after 25 years, clearing the road for the limits of Yamuna Power and BES Rajdhani Power to get out of the expensive Dadri unit agreement NTPC managed by the state.
The ministry sends a circular to all state-generation states and utilities on Monday, says electric stations are free to sell through various electrical modes that are released after being criticized by PPA.
The ministry’s circulation was driven by questions from stakeholders after the verdict of the central tariff regulator regarding the petition by BBS reading.
The Central Electricity Regulatory Commission (CERC) on July 2 said the current rules gave privileges to exit the PPA after the electricity generation in question completed 25 years of commercial operations, considered as a full life cycle of plants.
The CERC decision and ministry clarification will help reduce pressure on tariffs for BBS consumers 45 lakh and Delhi government subsidy expenses.
Discom BPM can buy power from the exchange with half the price of Rs 6 per unit paid for supply from Dadri.
BBS Yamuna has a 62 MW allocation and BES Rajdhani 560 MW of the Dadri stage unit.
Discounts stopped the demand power, called ‘scheduling’ in industrial language, from the capacity of Dadri-i allocated after completing 25 years of operation on November 30, 2020 and tried to end the PPA.
But NTPC disagrees, pushing a discount to move the Cerc.
Clarification of the Ministry of Strength has the potential to open the water gate from a similar outgoing petition throughout the country because discounts tapping cheaper power than renewable sources to reduce costs.
The BBS case also reflects a sustainable transition in the power market, where supply increases from renewable sources put down the lower pressure on the tariff and extort the demand for expensive power from coal grilled plants.