Indian Kanoon - Search engine for Indian Law

3. The appellant by its application dated December 28, 1998 sought approval of the Non-conventional Energy Development Corporation of Andhra Pradesh Limited (for short 'NEDCAP') for setting up Biomass based generation plant of 4MW capacity at Kotha Cheruvu Village Srikalahasthi Mandal, Chittoor District. The 'NEDCAP Board Sub-Committee' in its meeting held on Feb., 15, 1999 considered the application of the appellant and accepted its request. Formal sanction to set up the Biomass based power generation plant of 4 MW capacity at Kotha Cheruvu Village was accorded by the NEDCAP on February 18, 1999 in favour of the appellant. Subsequently, the appellant filed a fresh application for approval before the NEDCAP to set up Biomass power plant of 4.7 MW capacity. This request was also accepted by the NEDCAP. Again the appellant applied to the NEDCAP for approval to set up Biomass power plant of 6 MW capacity. The NEDCAP approved this request of the appellant as well and granted the requisite sanction on March 1, 2000. The appellant also sought permission of the APERC under Section 21(4) of the Andhra Pradesh Electricity Reform Act for selling energy to the first respondent, APTRANSCO, the then bulk supplier licensee. The Commission in its regulatory jurisdiction approved the format of Power Purchase Agreement between APTRANSCO and the appellant. Thereupon, on Feb. 18, 2002, the APTRANSCO and the appellant entered into Power Purchase Agreement (for short 'PPA') by which the APTRANSCO agreed to the purchase of delivered energy from 6 MW Biomass plant of the appellant at inter-connection point as per the terms and conditions specified therein. After the Biomass plant of the appellant commenced its operation on Sept. 18, 2002, the energy generated by it was being purchased by the first respondent. Subsequently, the obligations under the PPA were transferred to the second respondent, Southern Power Distribution Co. of Andhra Pradesh w.e.f. June 10, 2005 and since then the energy generated by the plant of the appellant is being purchased by the second respondent.

5. Subsequently, by letter dated July 29, 2003, the Chief Engineer, APTRANSCO pointed out to the APERC that some of the Non-conventional Energy Projects were delivering energy for sale to the APTRANSCO at more than 100% PLF. It was also pointed out that because of the technical constraints in evacuating the delivered energy, the APTRANSCO would need to substitute Article 1.4 of the PPA by a new clause restricting the operation of Non-conventional Energy Projects up to 100% PLF only after deducting capacities for auxiliary consumption and captive consumption from the installed capacity of the bio-mass plants.

6. By communication dated November 15, 2003, APERC approved the modification of Article 1.4 of the PPA but not to the extent as proposed by APTRANSCO. The proposal for modification of Article 1.4 by APTRANSCO and the modification approved by the Commission, through its letter of November 15, 2003 need to be juxtaposed to appreciate the difference between the two:

APPLICABLE TO NON-CONVENTIONAL ENERGY POWER PROJECTS OTHER THAN MINI HYDEL AND WIND FARM Proposed Modification by APTRANSCO Modification Approved by the Commission Article 1.4 (Delivered Energy) Means, with respect to any Billing Month, the kilo watt hours (kWH) of electrical energy generated by the Project and delivered to the APTRANSCO at the Interconnection point as defined in Article 1.8, as measured by the energy meters at the Interconnection Point during that Billing Month.

Explanation: For the purpose of clarification, Delivered Energy, excludes all energy consumed in the Project by the main plant and equipment, lighting and other loads of the Project from the energy generated and as recorded by energy meter at interconnection point"

1.7 Interconnection Facilities: means all the equipment and facilities including, but not limited to, all metering facilities, switch gear, substation facilities, transmission lines and related infrastructure, to be installed by the APTRANSCO by laying independent line to the designated Substation of APTRANSCO at the voltage specified in Article 1.14 at the company's expense from time to time through out the term of this Agreement necessary to enable the APTRANSCO to economically, reliably and safely receive Delivered Energy from the Project in accordance with the terms of this Agreement.