The Central Electricity Regulatory Commission (CERC) has approved Solar Energy Corporation of India’s (SECI) tariff of ₹2.48 (~$0.028)/kWh for 450 MW solar power projects.

The Commission also approved a trading margin of ₹0.07 (~$0.0008)/kWh.

Background

SECI has been designated the nodal agency for implementing interstate transmission system (ISTS)-connected/state-specific solar/ wind power project programs.

It initially floated a tender to set up a 1,200 MW solar power project-connected ISTS, which was reduced to 500 MW capacity.

Bids were received for 940 MW, and all met the techno-commercial criteria.

SECI awarded 250 MW to SAEL Industries and 200 MW to NTPC Renewable Energy at a tariff of ₹2.48 (~$0.0008)/kWh each.

It approached CERC to approve the discovered tariff.

Commission’s Analysis

The Commission held that distribution licensees or intermediary procurers can approach it for adopting discovered tariffs.

It added that since the awarded capacities are yet to be tied up with the distribution licensees, the trading margin will be per the power sale agreement.

The Commission approved SECI’s tariff, noting that it was discovered through a competitive bidding process and was market-aligned.

It directed limiting the trading margin to ₹0.02 (~$0.00023)/kWh if SECI fails to provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit to the solar generators.

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

The Commission 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.’

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