GERC Allows Solar Power Generator to Replace Damaged Modules
The Gujarat Electricity Regulatory Commission has permitted solar power generators to replace damaged or defective modules at existing plants while maintaining its originally envisaged capacities. The order also addresses the challenges of maintaining older solar facilities amid evolving technologies.
September 27, 2024. By Mrinmoy Dey
The case has highlighted critical issues around how outdated solar plants can adapt to evolving technologies. It also sheds light on the ongoing challenges of managing PPAs and ensuring that the terms agreed upon over a decade ago remain relevant amid rapid technological advancements.
The petitioner sought the GERC's intervention to replace over 13,727 deteriorated solar panels having total Wp capacity of 2.89 MW with 8,383 new ones of different specifications. The primary aim is to restore the plant’s full capacity, allowing it to generate energy as per the PPA with GUVNL, which dates back to December 9, 2010.
The petitioner submitted that since its commissioning in January 2012, the plant had been operating smoothly until 2017, when a significant drop in generation was observed. According to a thermography test conducted by an external agency in 2020, 4,363 solar PV modules showed anomalies. Subsequent IV Curve tests report confirmed that about 56 percent of the plant's solar panels were either damaged or deteriorated.
The petitioner further claimed that the PPA does not restrict the replacement of damaged panels, provided the plant's capacity does not exceed 5 MW.
GUVNL, however, opposed the petition. The counsel representing GUVNL stated that only 765 modules were damaged as per an on-site inspection in 2021. GUVNL permitted the replacement of these 765 panels but expressed concern that replacing the entire 13,727 panels could artificially enhance the plant’s output beyond its contracted capacity, which would violate the PPA.
GUVNL further argued that newer, more efficient panels would allow Konark to benefit from higher energy output and, consequently, increased revenues while still benefiting from a higher tariff rate established in 2010.
Additionally, it expressed concern that allowing such replacements would set a precedent for solar operators to upgrade their systems without considering the contractual obligations set in previous tariff orders, where tariffs were based on older technologies and higher capital costs.
GERC in its order stated, “We are of the view that the claim of replacement of damaged/defective modules exists at Petitioner’s plant as per thermographic/infrared scanning and IV testing carried out by the Petitioner is correct and valid and the Petitioner is eligible to replace the same by new modules such that the plant capacity will not exceed 5 MW.”
It further added, “The communication dated March 28, 2019 issued by the Respondent with regard to imposition of ‘Base CUF’ and limiting the tariff/cost of generation payable to ‘Base CUF’ only is illegal, arbitrary. The Petitioner is eligible to generate and inject the energy from its solar power plant of 5 MW capacity and supply the energy generated from the plant to the Respondent to the limit of 20 percent CUF.”
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