KERC Reduces Tariff for a 20 MW Solar Project for Commissioning Delay

The Karnataka Electricity Regulatory Commission (KERC) dismissed Adani Green Energy (UP) Limited’s (Adani Green) plea for relief on the grounds of the ‘force majeure’ clause for its 20 MW solar project.

The company had signed the power purchase agreement (PPA) with the Chamundeshwari Electricity Supply Company Limited (CESCL).

The Commission had approved the tariff of Rs. 4.36/kWh for the energy supplied to CESCL from the scheduled commercial operation date (SCOD) of the project. The Commission also directed Adani Green to pay the liquidated damages for the delay in the commencement of power supply.

Earlier, Adani Green had filed a petition asking the Commission to declare that it was prevented from performing its obligations under the power purchase agreement (PPA) due to ‘force majeure’ (unforeseeable) events affecting it.

It had asked the Commission to declare that the effective date would be the date on which the supplemental power purchase agreement (SPPA) received approval from the Commission. It had also requested the Commission to direct the respondents not to levy any liquidated damages and direct the respondents to make payment at the rate of Rs. 4.79/kWh, as per the PPA.