CERC’s imported coal cost relief for power plants will allow resolution of 15,000 Mw capacity


CERC’s imported coal cost relief for power plants will allow resolution of 15,000 Mw capacity

The latest landmark order by power sector regulator CERC on pass through of the higher cost of imported coal to consumers would enable resolution for affected domestic coal-based projects aggregating to 14,000-15,000 Mw with long-term Power Purchase Agreements (PPAs) with discoms and facing coal supply shortfall from domestic linkage.

The tariff relief approved by CERC follows similar orders issued for other IPPs in the recent past and culminates a long-drawn process for domestic coal-based IPPs seeking pass-through of the higher cost of imported coal under the PPAs signed with state distribution utilities in lieu of shortfall in supply of domestic linkage coal.

“More importantly, this order by CERC clarifies that the projects using coal under the SHAKTI scheme are also entitled for compensation for any shortfall in supply of annual contracted quantities by Coal India Ltd Read More

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