The Central Electricity Regulatory Commission (CERC) has adopted tariffs for 1,500 MW of interstate transmission system (ISTS)-connected solar power projects awarded by the Solar Energy Corporation of India (SECI).

SECI had awarded the projects to Avaada Energy (300 MW at ₹2.57 (~$0.03)/kWh), ReNew Solar Power (300 MW at ₹2.57(~$0.03)/kWh), Engie Energy India (100 MW at ₹2.57(~$0.03)/kWh), SAEL Industries (600 MW at ₹2.57(~$0.03)/kWh), and NTPC Renewable Energy (200 MW at ₹2.58(~$0.03)/kWh).

Background

SECI invited bids on January 18, 2024, for setting up 1,500 MW of ISTS-connected solar power projects (Tranche XIV).

This competitive process resulted in the selection of five successful bidders for a total capacity of 1,500 MW.

SECI issued Letters of Award to the successful bidders on April 23, 2024.

SECI requested the Commission to adopt the tariffs discovered through competitive bidding.

Commission’s Analysis

The CERC examined whether the bidding process followed the government guidelines. SECI had constituted a committee for bid evaluation, which certified that the evaluation criteria were strictly complied with and the process was transparent.

The Commission noted a delay in SECI approaching it for tariff adoption as required within 15 days of tariff discovery. SECI attributed this to past practices of waiting for power purchase and sale agreements to be executed before seeking tariff adoption.

It considered SECI’s undertaking to file future petitions within the prescribed timeline without waiting for PPA/PSA execution.

In line with recent orders, the Commission decided to adopt the tariffs without waiting for the capacity to be tied up under power purchase and sale agreements, subject to SECI securing these agreements in the future.

The Commission also allowed SECI to charge a trading margin of ₹0.07/kWh, subject to certain conditions.

Recently, CERC adopted tariffs for 1,080 MW of ISTS-connected wind-solar hybrid power projects awarded by NTPC.

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