The Central Electricity Regulatory Commission (CERC) has approved a tariff ranging from ₹4.48 (~$0.051)/kWh to ₹4.56 (~$0.052)/kWh for NHPC’s 1.2 GW firm and dispatchable renewable energy (FDRE) projects.

The Commission, however, refused NHPC’s request for a trading margin of ₹ 0.07 (~$0.0008)/kWh. It stated that the trading margin will be determined according to the power sale agreements (PSAs) yet to be signed between NHPC and the distribution companies.

Background

NHPC floated a tender for the selection of renewable energy power generators to supply 1.2 GW of FDRE from the interstate transmission system-(ISTS) connected renewable energy projects.

It received bids from five companies, and four qualified for the e-reverse auction.

NHPC awarded 150 MW to Jevargi Solar Power at a tariff of ₹4.48 (~$0.051)/kWh.

It also awarded 200 MW to Juniper Green Energy, 600 MW to Avaada Energy, and 250 MW to ACME Solar Holdings at a tariff of ₹4.56 (~$0.052)/kWh each.

NHPC approached CERC to approve the tariffs and the trading margin of ₹0.07 (~$0.0008)/kWh.

Commission’s Analysis

CERC observed that the tariffs were discovered through a competitive bidding process and approved the discovered tariffs. It also directed the petitioner to inform when the awarded capacity is tied up under power purchase agreements and PSAs.

The Commission refused to accept the petitioner’s request to approve a trading margin of ₹0.07 (~$0.0008)/kWh.

It held that the trading margin would be determined in accordance with the PSAs signed between the petitioner and the distribution companies.

However, if NHPC fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the renewable energy power generators, the trading margin would be limited to ₹0.02 (~$0.00023)/kWh.

In March 2025, CERC approved the Solar Energy Corporation of India’s petition to adopt tariffs for 630 MW of firm and dispatchable renewable energy from ISTS-connected projects.

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