Karnataka government annuls KERC order requiring state approval for signing wind PPAs

The Karnataka government has annulled a Karnataka Electricity Regulatory Commission (KERC) order mandating the commission to sign wind PPAs in the state. The state government invoked Section 108 of the Electricity Act, 2003, which allows it to get involved in the policy for public interest. In addition, the state government has directed the KERC to approve PPAs at the rate of Rs 4.50 per kWh for 270.5 MW of wind projects. Moreover, for wind projects to be commissioned before March 31, 2018, developers will have to enter into PPAs with the discoms at a tariff of Rs 3.74 per kWh, fixed by the KERC. The developer will pay Rs 2 million per MW as bank guarantee to Karnataka Renewable Energy Development Limited for projects to be commissioned from September 4, 2017 to March 31, 2018.

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