VIJAYAWADA: The Andhra Pradesh Electricity Regulatory Commission (APERC) has approved a Power Purchase Agreement (PPA) for the Dr Narla Tata Rao Thermal Power Station Stage-V (Dr NTPPS-V), an 800 MW project managed by Andhra Pradesh Power Generation Corporation Limited (APGENCO).
This PPA aims to ensure stable baseload capacity, integrate renewable energy, and secure the State’s future energy needs. While APGENCO sought compensation for a 46-month delay in the project’s Commercial Operation Date (COD) due to factors such as enhanced environmental norms, COVID-19 disruptions, and a fire incident, the Commission only approved a 31-month delay.
This decision aligns with the Supreme Court’s guidelines on extending deadlines affected by the COVID-19 pandemic, as many external delays coincided with pandemic-related disruptions. APERC set the approved Fixed Charge for Dr NTPPS-V at Rs 6,295.42 crore from December 2023 to March 2029, which is significantly lower than APGENCO’s initial claim of Rs 8,800.61 crore.
APERC also fixed a ceiling of Rs 3.34/kWh for Variable Charges, allowing for annual adjustments based on fuel and transport costs. This rate is a reduction from APGENCO’s proposed Rs 3.50/kWh.
The Commission introduced a penalty structure for power availability shortfalls. DISCOMs must now reduce the variable cost component by five paise if monthly availability is up to 5% below target, by 10 paise if shortfall ranges from 5% to 15%, and by 15 paise for shortfalls over 15%.
APERC also issued a separate order on the capital cost and tariff for the Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS). This includes 2x800 MW Stage-I for 2024-2029 and 1x800 MW Stage-II from its COD on March 10, 2023, through the 5th Control Period (2024-2029).