Discoms free to exit PPAs after completion of the term of agreements

The Ministry of Power (MoP) has permitted discoms to exit power purchase agreements (PPAs) after completion of the term of the agreements. 

This clarificationhas come after the Central Electricity Regulatory Commission (CERC) recently passed an order stating that BSES Yamuna Power was within its rights to stop purchasing power from NTPC Dadri power plant as it had completed 25 years of useful life in late 2020. The MoP had notified the PPA exit guidelines on March 22, 2021 enabling discoms to either continue or exit from PPAs from such projects which have completed 25 years since the commissioning.


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