Punjab New and Renewable Energy Sources Minister Raj Kumar Verka while emphasizing need for reduction of tariff of Power Purchase Agreements (PPAs) of Solar Power Projects in view of the fact that the impact of costly power is being borne by the people of Punjab, directed the official of the department to find legally sound reasoning and methodology for exploring the possibility of reduction of tariff of these solar power projects.
Presiding over a meeting in this regard, Verka said that the state is exploring all ways and means including possibility of bringing a legislation in the State Assembly to reduce the tariff of these high cost power purchase as change in Law of Electricity is a concurrent subject.
The meeting was attended by Sh. H.S. Hanspal, Chairman PEDA, Sh. Venu Prasad, Chairman-cum-Managing Director PSPCL, KP Sinha, Principal Secretary Department of Power & NRES, Sh. N.P.S. Randhawa, Chief Executive PEDA, Sh. M.P. Singh Director PEDA, Sh. Paramjit Singh, Director, Generation PSPCL and Manjeet Singh SE, IPC, PSPCL.
The Cabinet Minister said that the PPAs were signed in three phases about 7-8 years back when the cost of solar power at the national level was much higher than today, however, there is a need to look at the possibility of reduction in tariff being paid by PSPCL for these projects in view of the much lower cost of solar power at present time. Giving a complete over view of the power purchase scenario of PSPCL, the CMD PSPCL informed that current power purchase rate is quite lower. He said that efforts are being made by PSPCL for exploring the possibility of reduction in tariff for PPAs signed much earlier.
