The Central Electricity Regulatory Commission (CERC) has approved the Solar Energy Corporation of India’s (SECI) petition to adopt tariffs for 630 MW of firm and dispatchable renewable energy from interstate transmission system (ISTS)-connected projects.

The approved tariff ranges between ₹4.98 (~$0.057)/kWh and ₹4.99 (~$0.06)/kWh.

Background

In June 2023, the petitioner, SECI, invited bids for 1,260 MW of firm and dispatchable renewable energy from an ISTS-connected renewable energy project with storage. In 2024, it reduced the tender capacity to 630 MW.

After the e-reverse auction, SECI issued letters of award (LOAs) to the selected bidders for tariffs ranging from ₹4.98 (~$0.057)/kWh and ₹4.99 (~$0.06)/kWh.

SECI approached the Commission to approve the tariff and a trading margin of ₹0.07(~$0.0081)/kWh to be recovered from the distribution companies.

Following the October 2024 hearing, the petitioner was directed to submit the progress on executing the power purchase agreements (PPAs) and power supply agreements (PSAs).

While the LOAs were awarded, the Commission was informed that BSES Rajdhani Power and BSES Yamuna Power did not execute the PSA. Hence, SECI offered 625 MW of the 630 MW capacity to other distribution utilities.

The petitioner prayed for adopting the discovered tariff range and the trading margin. It submitted that the tariff was discovered through a transparent and competitive bidding process and conformed to established guidelines.

SECI also contended that the tariffs were reasonable and had been evaluated by the bid evaluation committee.

Commission’s analysis

CERC observed that SECI’s tendering and tariff discovery processes were transparent, competitive, and followed established guidelines. It also noted that the price discovered was reasonable and was evaluated by the bid evaluation committee.

The Commission adopted the tariffs ranging between ₹4.98 (~$0.057)/kWh and ₹4.99 (~$0.06)/kWh.

The Commission instructed SECI to submit copies of the awarded capacity tied up under the PPAs and PSAs. It directed SECI to place on record instances of non-fructified capacity into the PPAs and PSAs on the current case’s file.

CERC directed the petitioner to set the trading margins per the PSAs since the distribution licensees had not yet tied them up.

If SECI fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the wind-solar hybrid power generators, the trading margin will be subject to a ceiling of Rs.0.02 (~$0.0023)/kWh.

In February, the Commission approved the SECI’s petition to adopt a tariff of ₹2.6 (~$0.03)/kWh for 900 MW interstate transmission system (ISTS)-connected solar power projects (Tranche- XI).

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