KERC restricts state discoms from signing PPAs with wind power developers

The Karnataka Electricity Regulatory Commission (KERC) has restricted the state discoms from signing power purchase agreements (PPAs) with wind power developers till further notice. The regulator noted that the state discoms have already signed enough PPAs with renewable energy developers to fulfil their renewable purchase obligation, not only for 2017-18, but also for the next two years. The KERC further added that the unplanned procurement of power from renewable energy sources, especially wind power, may adversely affect discom finances and burden consumers with higher tariffs. The commission also suggested that all other PPAs with wind developers (if signed at all) should only be through competitive bidding. Further, the KERC has proposed conducting a mid-term review of its wind power tariff of Rs 4.50 per kWh fixed by it earlier till 2018 in light of the lower tariff discovered in the wind auction conducted by the Solar Energy Corporation of India in February 2017.

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