The Uttar Pradesh Electricity Regulatory Commission (“UPERC”) in its Order dated 26.09.2023 in Petition No. 1898 of 2022 titled as “Lalitpur Power Generation Company Ltd. (“LPGCL”) v. U.P. Power Corporation Ltd. (“UPPCL”)” while deciding the issue on framing a methodology for co-firing of biomass pellets and recovery of its costs in the variable charges/energy Charges has directed LPGCL to share the technical feasibility study report along with the comments of UPPCL and the consequential impact on energy charge rate (“ECR”) within six months.
The Petition was filed by LPGCL for co-firing biomass pellets with coal as per the revised “Policy for Biomass Utilization for Power Generation through Co-firing in Pulverised Coal-fired Boilers” dated 08.10.2021 issued by the Ministry of Power (“MOP”) (“Biomass Policy”). LPGCL, before UPERC, inter alia contended that the Biomass Policy is binding in nature and UPERC Regulations do not provide for methodology for computation of ex-bus energy generation for biomass co-firing.
UPERC noted that after the submission of the Technical Feasibility Study Report, it would devise a methodology for the determination of ECR using biomass co-firing, accounting of energy generated by biomass co-firing for the purpose of Renewable Purchase Obligation benefit. Further, any methodology for claiming additional capital/ operational expenditure etc. may also be devised by the UPERC in pursuance of the same. This Order will benefit a large number of Thermal Generators in the State of Uttar Pradesh since a roadmap for payment of energy charges in case of use of biomass pellets will be laid down by the UPERC in this case.
LPGCL was represented by MSA Partners and copy of the Order can be accessed here.
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