Common use of Shortfall in Generation Clause in Contracts

Shortfall in Generation. If for any Contract Year, it is found that the SPD has not been able to generate and supply minimum energy, namely (i) Million kWh (MU) till the end of 10 years from the COD and (ii) ………….. Million kWh (MU) for the rest of the Term of the Agreement, for any reason except as mentioned below, the non-compliance by SPD shall make the SPD liable to pay the compensation to PSPCL. The amount of such compensation shall be as determined by Punjab State Electricity Regulatory Commission and such compensation shall ensure that PSPCL is offset for all potential costs associated with low generation and supply of power under the PPA. However, the minimum compensation payable to PSPCL by the SPD shall be 75% (seventy-five percent) of the cost of this shortfall in energy terms, calculated at PPA tariff. The compensation shall be computed and applied to the amount of shortfall in generation with regard to each Contract Year separately. For the first year of operation, the above limits shall be considered on pro- rata basis. In case of part commissioning of the Project, the above limits shall be considered on pro-rata basis till the commissioning of full capacity of the Project. The lower limit shall, however, be relaxable by PSPCL to the extent of grid non-availability for evacuation (beyond the Delivery Point) which is beyond the control of the SPD (as certified by the SLDC/RLDC). The compensation shall not be applicable in the events of Force Majeure identified under the PPA, affecting supply of solar power by the SPD.

Shortfall in Generation. If for any Contract Year, it is found that the SPD has not been able to generate and supply minimum energy, namely (i) Million kWh (MU) till the end of 10 years from the COD and (ii) ………….. Million kWh (MU) for the rest of the Term of the Agreement, for any reason except as mentioned below, the non-compliance by SPD shall make the SPD liable to pay the compensation to PSPCL. The amount of such compensation shall be as determined by Punjab State Electricity Regulatory Commission and such compensation shall ensure that PSPCL is offset for all potential costs associated with low generation and supply of power under the PPA. However, the minimum compensation payable to PSPCL by the SPD shall be 75% (seventy-five percent) of the cost of this shortfall in energy terms, calculated at PPA tariff. The compensation shall be computed and applied to the amount of shortfall in generation with regard to each Contract Year separately. For the first year of operation, the above limits shall be considered on pro- rata basis. In case of part commissioning of the Project, the above limits shall be considered on pro-rata basis till the commissioning of full capacity of the Project. The lower limit shall, however, be relaxable by PSPCL to the extent of grid non-availability for evacuation (beyond the Delivery Point) which is beyond the control of the SPD (as certified by the SLDC/RLDC). The compensation shall not be applicable in the events of Force Majeure identified under the PPA, affecting supply of solar power by the SPD.