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PSERC Rejects PSPCL’s Review Petition on 1,450 MW Solar Procurement from SJVN

The Punjab State Electricity Regulatory Commission (PSERC) has dismissed a review petition filed by Punjab State Power Corporation Ltd. (PSPCL) seeking reconsideration of its proposal to procure 1,450 MW of solar power from SJVN.

The Commission held that PSPCL failed to establish any error in its earlier decision or present fresh evidence warranting a review. It noted that PSPCL could not assure that procurement parameters—particularly cost and timelines—would remain unchanged.

PSPCL had earlier sought approval to procure power at tariffs of Rs2.52–2.53/kWh plus Rs0.07/kWh trading margin. However, PSERC had rejected the petition in November 2024, citing costs above the approved ceiling tariff. PSPCL argued that the rates were competitive and fixed for 25 years compared to volatile fossil fuel prices, but delays in regulatory approvals led to project developers withdrawing or pushing back supply timelines, raising landed costs to Rs3.29–3.30/kWh.

The Commission also criticized SJVN’s role, noting contradictions between its claimed risks and its disclaimers on transmission responsibilities, while pointing out that PSPCL could have run its own tender instead of paying an estimated ?6.2 billion trading margin over 25 years.

Concluding that the petition amounted to an appeal disguised as a review, PSERC reaffirmed its earlier rejection, stressing that consumer interests and market competitiveness could not be compromised.