HERC Approves 127 MW Solar PPAs Under PM-KUSUM Scheme
POWER & RENEWABLE ENERGY

HERC Approves 127 MW Solar PPAs Under PM-KUSUM Scheme

The Haryana Electricity Regulatory Commission has granted a one-time approval for the procurement of solar power under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan programme covering a cumulative capacity of 126.8 megawatt (MW) contracted by the Haryana Power Purchase Center between 2020 and 2025. The PM-KUSUM Component A initiative is intended to enable farmers and developers to establish grid-connected solar projects on barren or fallow land and to decentralise power generation. The scheme aims to provide a steady additional income stream for the agricultural sector while supporting state level clean energy targets.

The approved power purchase agreements were secured at a levelised tariff of Rs3.11/kWh for a tenure of 25 years, while the state had originally been allocated 158 MW under the programme. The HPPC signed 74 individual PPAs totalling 126.8 MW, and the Commission observed that the petition for approval was filed after a delay of nearly six years, with some agreements dating back to August 2020. The regulator noted the retrospective submission and treated the approvals as exceptional.

For engineering, procurement and construction contractors and solar developers operating in Haryana the order formalises revenue streams for existing projects but signals limited tolerance for delayed filings. The Commission has indicated that future agreements must be submitted for prior regulatory approval in strict accordance with licence conditions. Failure to obtain prior approval will result in the exclusion of power procurement costs from tariff determination which could render projects financially unviable for distribution companies and developers alike.

The HERC has mandated that all future power procurement arrangements adhere to established regulatory guidelines and that retroactive approval requests will no longer be entertained. This stance reflects an increasing emphasis on regulatory compliance across the India renewable energy sector as states pursue decarbonisation goals. Decentralised solar capacity remains a priority provided developers and state utilities maintain transparency and follow procedural frameworks set by state electricity regulatory commissions.

The HPPC argued that localised generation will assist in meeting renewable purchase obligations and in reducing transmission losses through nearer term delivery of power. The order therefore secures contracted capacity while reinforcing the need for timely approvals and clear documentation for future procurement. Stakeholders are expected to align contracting practices with the regulator's requirements to avoid financial and operational risks.

The Haryana Electricity Regulatory Commission has granted a one-time approval for the procurement of solar power under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan programme covering a cumulative capacity of 126.8 megawatt (MW) contracted by the Haryana Power Purchase Center between 2020 and 2025. The PM-KUSUM Component A initiative is intended to enable farmers and developers to establish grid-connected solar projects on barren or fallow land and to decentralise power generation. The scheme aims to provide a steady additional income stream for the agricultural sector while supporting state level clean energy targets. The approved power purchase agreements were secured at a levelised tariff of Rs3.11/kWh for a tenure of 25 years, while the state had originally been allocated 158 MW under the programme. The HPPC signed 74 individual PPAs totalling 126.8 MW, and the Commission observed that the petition for approval was filed after a delay of nearly six years, with some agreements dating back to August 2020. The regulator noted the retrospective submission and treated the approvals as exceptional. For engineering, procurement and construction contractors and solar developers operating in Haryana the order formalises revenue streams for existing projects but signals limited tolerance for delayed filings. The Commission has indicated that future agreements must be submitted for prior regulatory approval in strict accordance with licence conditions. Failure to obtain prior approval will result in the exclusion of power procurement costs from tariff determination which could render projects financially unviable for distribution companies and developers alike. The HERC has mandated that all future power procurement arrangements adhere to established regulatory guidelines and that retroactive approval requests will no longer be entertained. This stance reflects an increasing emphasis on regulatory compliance across the India renewable energy sector as states pursue decarbonisation goals. Decentralised solar capacity remains a priority provided developers and state utilities maintain transparency and follow procedural frameworks set by state electricity regulatory commissions. The HPPC argued that localised generation will assist in meeting renewable purchase obligations and in reducing transmission losses through nearer term delivery of power. The order therefore secures contracted capacity while reinforcing the need for timely approvals and clear documentation for future procurement. Stakeholders are expected to align contracting practices with the regulator's requirements to avoid financial and operational risks.

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