Discoms free to exit PPAs after completion of the term of agreements

The MoP has permitted discoms to exit power purchase agreements (PPAs) after completion of their terms. This clarification came after the Central Electricity Regulatory Commission recently passed an order stating that BSES Yamuna Power Limited and BSES Rajdhani Power Limited were within their rights to stop purchasing costly power from NTPC’s Dadri power plant after it had completed 25 years of useful life in late 2020. The move would also help discoms to meet their renewable power purchase obligations as mandated by the Delhi Electricity Regulatory Commission. The MoP notified the PPA exit guidelines on March 22, 2021, enabling discoms to either continue with or exit from PPAs of projects that have completed 25 years since commissioning.