The Central Electricity Regulatory Commission (CERC) has approved the Solar Energy Corporation of India’s (SECI) petition to adopt a tariff for 1,200 MW interstate transmission system (ISTS) connected solar projects with 600 MW/1,200 MWh energy storage systems (ESS).

The approved tariff ranges between ₹3.41(~$0.039)/kWh and ₹3.42(~$0.04)/kWh.

Background

The petitioner, SECI, invited bids to set up the 1,200 MW ISTS-connected solar project with ESS. In response, it received ten bids, of which SECI shortlisted nine.

The e-reverse auction was conducted in July 2024, and SECI awarded the letter of award to successful bidders under a discovered tariff ranging between ₹3.41(~$0.039)/kWh and ₹3.42(~$0.04)/kWh.

SECI entered a power sale agreement with the Kerala State Electricity Board (KSEBL) for 500 MW in September 2024.

The petitioner approached the Commission for tariff adoption for the power projects. It also sought approval for a trading margin of ₹0.07 (~$0.00080)/kWh to be recovered from the distribution companies.

SECI had tied up 500 MW of the tendered 1,200 MW by the time of the hearing under power sale and purchase agreements.

The petitioner submitted that its tendering process adhered to the Ministry of Power’s competitive bidding guidelines.

KSEBL informed the Commission that it has filed a petition before the Kerala State Electricity Regulatory Commission to approve entering into a long-term power purchase agreement with SECI.

KSEBL requested the Commission to adopt the discovered tariff for the solar projects.

Commission’s Analysis

CERC concluded that SECI had discovered the tariff through a transparent process per government guidelines. The Commission also noted that an evaluation committee reviewed the bids in conformity with the tender provisions.

The Commission acknowledged the emphasis on expeditious tariff adoption under the bidding guidelines and approved tariffs for the complete 1,200 MW tender capacity, despite SECI tying up only 500 MW by the hearing period.

CERC recently approved SECI’s petition to adopt a tariff ranging between ₹4.64 (~$0.053) and ₹4.73(~$0.054)/kWh for its 1,200 MW wind-solar hybrid power projects.

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