The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.59 (~$0.029) and ₹2.6 (~$0.03)/kWh for NTPC’s 1,500 MW interstate transmission system (ISTS)-connected solar projects.

The Commission also approved a trading margin of ₹0.07 (~$0.00081)/kWh.

Background

The petitioner, NTPC, had issued a request for selection (RfS) along with standard power purchase agreements (PPAs) and power sale agreements (PSAs) in 2023.

Seven bids were received in response, offering an aggregate capacity of 3,200 MW. All bids met the techno-commercial criteria.

After the e-reverse auction, 1,500 MW was awarded to three bidders, along with the letters of award. The discovered tariff for the awarded capacity was ₹2.59 (~$0.029) and ₹2.6 (~$0.03)/kWh.

The petitioner approached CERC to approve the tariff and a ₹0.07 (~$0.0008/kWh trading margin.

During the hearings, one of the respondents had asked NTPC for an update on the status of the PSAs’ execution. NTPC argued that the tariff adoption is not contingent upon signing the PPA/PSA.

It emphasized that the Commission adopting the tariff would facilitate the timely execution of the projects per the timeline specified in the Ministry of Power’s solar guidelines issued in July 2023.

In a September 2024 hearing, NTPC furnished a conformity certificate indicating that the tariff discovered in the tender appears to be reasonable and consistent with the tender requirements.

Commission’s Analysis

CERC concluded that NTPC had discovered the tariff through a transparent process per the Ministry of Power’s solar guidelines.

It also noted that NTPC filed a conformity certificate indicating that the discovered tariff appeared reasonable and consistent with the RfS requirements.

The Commission approved the discovered tariffs and the petitioner’s request for the ₹0.07 (~$0.0008)/kWh trading margin, emphasizing that distribution licensees must mutually agree to it.

Recently, CERC approved the Solar Energy Corporation of India’s petition to adopt a tariff for 1,200 MW ISTS-connected solar projects with 600 MW/1,200 MWh energy storage systems. The approved tariff ranges between ₹3.41(~$0.039)/kWh and ₹3.42(~$0.04)/kWh.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.