The Central Electricity Regulatory Commission (CERC) has approved Solar Energy Corporation of India’s (SECI) 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.

The Commission also approved a trading margin of ₹0.07 (~$0.008)/kWh to be paid by the distribution companies or buying entities.

Background

SECI submitted the request for selection, a draft power purchase agreement (PPA), and a draft power supply agreement (PSA) for setting up 1,200 MW interstate transmission system (ISTS)-connected wind-solar hybrid power projects with assured peak power supply.

Seven bidders were shortlisted, and an e-reverse auction was conducted in April 2023. Four bidders offering an aggregate capacity of 1,200 MW were selected and issued letters of award.

SECI approached the Commission seeking the adoption of tariffs for individual power projects. It had tied up only 600 MW capacity under the PPA with the successful bidders by the petition date.

Commission’s Analysis

The Commission noted that SECI had discovered the tariff through a transparent process per government guidelines.

In the past, the Commission adopted tariffs only for the awarded capacity tied up under PPAs and PSAs. However, considering the recent emphasis on expeditious tariff adoption, it adopted the tariffs without waiting for the entire awarded capacity under the PPAs and PSAs to be tied up.

The Commission approved a tariff ranging between ₹4.64(~$0.053) to ₹4.73(~$0.054)/kWh and a margin of ₹0.07 (~$0.008)/kWh for the complete 1,200 MW capacity. It also adopted a ₹0.07 (~$0.008)/kWh trading margin applicable to the distribution companies or buying entities.

Recently, CERC adopted tariffs ranging between ₹3.43 (~$0.0395) and ₹3.46 (~$0.0398)/kWh for 1,200 MW wind-solar hybrid power projects. The tariffs were discovered through a competitive bidding process conducted by the SECI.

Earlier this year, CERC approved SECI’s petition to adopt a tariff of ₹2.6 (~$0.03)/kWh for 900 MW ISTS-connected solar power projects. It also approved a trading margin of ₹0.07 (~$0.0008)/kWh.

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