(1) Where the parties have mutually agreed, in the Power Purchase Agreement executed by them, for a project specific levellised tariff, the Commission shall determine such tariff taking into consideration-
(i) prudent capital cost as may be admitted by the Commission duly keeping in view normative capital cost under these Regulations, the cost approved in the Detailed Project Report, the actual expenditure incurred as per auditor’s certificate, the information furnished under regulation 18:
Provided that in case of delay in execution of the project, the Commission shall consider the time over run cost as follows -
(a) where the delay is due to factors entirely attributable to the renewable energy generator, the entire cost shall be borne by the renewable energy generator;
(b) where the delay is due to force majeure, the Commission may allow the net additional cost incurred on this account to the renewable energy generator: and
(c) in a situation not covered under clauses (a) and (b), the Commission may allow the additional cost, not exceeding 50% of the net additional cost incurred due to time overrun:
Provided further that the renewable energy generator shall be deemed to have subscribed to the requisite insurance policies covering the risks during construction stage and also to have stipulated provisions for the liquidated damages in the contracts relating to the construction of the project, awarded by him, as per the prudent practices, and accordingly, in case of any time and cost over runs, the Commission shall not allow any amount which is or would have been recoverable by him on account of such deemed provisions for Insurance and liquidated damages:
Provided further that any cost pertaining to allotment of the project, including upfront premium and any other amount charged by the State Government while granting extension or capacity enhancement or/and any liquidated damages/penalty imposed in accordance with the Power Purchase Agreement executed with the licensee, will not form part of the capital cost;
(ii) the normative annual capacity utilisation factor specified under Chapter-V of these Regulations for the SHPs or the annual capacity utilisation factor 14 Compendium of HPERC Regulations, March 2021 worked out on the basis of data for 75% dependable year as per the approved Detailed Project Report, whichever is higher;
(iii) the technology specific parameters as specified for the SHPs in Chapter V of these Regulations and as may be laid down by the Commission for the other renewable technologies as per regulation 17; and 1 [(iv) financial norms/principles, in relation to the Municipal Solid Waste (MSW) based power projects and Refuse Derived Fuel (RDF) based power projects, as may be adopted by the Commission in accordance with sub-regulation (3A) of regulation 17 of these Regulations and in other cases, the ceiling norms, except for capital cost, as specified in Chapter-IV of these Regulations:]
Provided that if the licensee and renewable energy generator have, in accordance with regulation 31, agreed to any improved norms, including operation and maintenance norms, which may lead to overall reduction in the levellised tariff, such improved norms shall apply for determination of the project specific levellised tariff.
(2) Where the project specific levellised tariff, as determined under subregulations(1)–
(i) exceeds the corresponding generic levellised tariff, duly adjusted for permissible rate of free power if any, determined by the Commission in relation to the control period in which the Power Purchase Agreement was approved by the Commission, the distribution licensee shall have the option to exit from the power purchase agreement, provided that this option shall not be available to the distribution licensee if the renewable energy generator agrees to a tariff corresponding to the generic levellised tariff;
(ii) is less than 95% of the corresponding generic levellised tariff, duly adjusted for permissible rate of free power if any, determined by the Commission in relation to the control period in which the Power Purchase Agreement was approved by the Commission, the renewable energy generator shall have the option to exit from the power purchase agreement, provided that this option shall not be available to the renewable energy generator if the distribution licensee agrees to keep the tariff within the aforesaid limit.
(3) Where the exit option is exercised by any party under sub-regulation (2) and the interconnection point for that project falls under the control of the distribution licensee, it shall, on request from the renewable energy generator, provide open access through its system to the renewable energy generator as per the open access regulations.