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In an effort to fulfill the state’s renewable buy obligation (RPO), the Grid Company of Orissa (GRIDCO) and NTPC Restricted have an influence sale settlement (PSA) for 200 MW of photo voltaic initiatives linked to the interstate transmission system (ISTS) that has been permitted by the Odisha Electrical energy Regulatory Fee (OERC).
Earlier, for the RPO demand of GRIDCO, NTPC proposed a solar energy capability of 400 MW at a fee of Rs. 2.50/kWh, together with a buying and selling margin of Rs. 0.70 to be made accessible after 2024.
Given the rising state consumption beginning within the monetary yr 2024–2025, GRIDCO selected to buy 200 MW of solar energy out of the 400MW accessible. A PSA was signed between GRIDCO and NTPC to buy the 200 MW of photo voltaic vitality for Rs. 2.50/kWh for 25 years, because the quoted value was extraordinarily aggressive.
GRIDCO will attain the photo voltaic RPO of 9.75% by FY 2024–25 with the 1,731 MW of photo voltaic tied-up capability and the 479.15 MW of non-solar tied-up capability. Since GRIDCO’s present solar energy provide is sufficient to meet the photo voltaic RPO by FY 2025–2026, it couldn’t want this energy in 2024.
When GRIDCO requested for solutions from the state’s distribution firms, Tata Energy Western Odisha Distribution (TPWODL), advised that, given the unpredictability of the market, buying the 200 MW at a aggressive fee appeared wise.
Thus, as a result of the ability has a low landed price, GRIDCO determined it could be sensible to maintain it for the state. It estimated an RPO goal of 30% by FY 2029–30, which can enhance, within the absence of any RPO targets past FY 2024–25. Even in FY 2025–2026, GRIDCO may require 200 MW to fulfill any elevated RPO.
The federal government has granted a waiver as much as June 2025, so the photo voltaic vitality from NTPC shall be offered to Odisha’s periphery with none ISTS prices. Due to this fact, GRIDCO granted NTPC an in-principle approval to buy 200 MW extra of photo voltaic vitality for 25 years with out paying any ISTS charges in fundamental customs obligation.
In line with the fee, the NTPC tariff proposal appeared aggressive over a 25-year timeframe. The essential customs obligation is not going to apply to the tariff, and ISTS charges and losses is not going to be required to be paid.
The fee emphasised that as a way to fulfill expanded RPOs, extra renewable energy could also be wanted past the monetary yr 2024–2025 along with the presently tied-up capability.
In an effort to meet its RPO, the regulator, due to this fact, allowed the PSA that may be signed by GRIDCO and NTPC to buy 200 MW of photo voltaic vitality by ISTS-connected initiatives.