The Central Electricity Regulatory Commission (CERC) has approved Calcutta Electric Supply Corporation’s (CESC) petition to procure electricity from Purvah Green Power at a tariff of ₹2.69 (~$0.031)/kWh.

The Commission also approved CESC’s bidding process deviations from the ‘Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects.’

Background

On July 26, 2024, the petitioner, CESC, issued a Request for Selection (RfS) to set up a 150 MW ISTS-connected solar project in Rajasthan with a greenshoe option of up to 150 MW. The petitioner had invited bids for the project to meet its Renewable Purchase Obligation (RPO).

CESC aimed to award 100% of the project capacity to a single bidder against the guidelines’ provisions which mandate a maximum 50% allocation per bidder.

The petitioner argued that the deviations were necessary for cost-effective power procurement.

It sought and secured approval from the West Bengal government for the bidding process deviations before inviting bids.

The RfS received three technically qualified bids offering an aggregate capacity of 350 MW. Purvah Green Power was shortlisted after the financial bid opening and e-reverse auction.

The company was allocated an initial capacity of 150 MW and another 150 MW under the greenshoe option at a tariff of ₹2.69 (~$0.031)/kWh each.

CESC petitioned the Commission to adopt the discovered tariff for the total 300 MW capacity and approve the bidding process deviations.

Commission’s Analysis

The Commission observed that the petitioner’s bidding process adhered to the guidelines. It observed that the purchase of solar energy was necessary for CESC to meet its RPO.

The CERC approved CESC’s ₹2.69 (~$0.031)/kWh tariff, noting that the discovered tariff was reasonable and market-aligned.

It also approved the deviation request, referring to precedents where such cases had been allowed and acknowledging that CESC had received the state government’s approval.

CESC recently awarded Purvah Green Power a 150 MW interstate transmission system-connected wind-solar hybrid power project.

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