The Central Electricity Regulatory Commission (CERC) has adopted tariffs for 1,000 MW of interstate transmission system (ISTS)-connected wind-solar hybrid power projects awarded by NTPC under Tranche V.

In April this year, NTPC awarded Sprng Energy 150 MW at a tariff of ₹3.41 ($0.0407)/kWh, AMPIN Energy (150 MW at ₹3.42 ($0.0408)/kWh), Juniper Green Energy (150 MW at ₹3.43 ($0.0410)/kWh), ReNew Solar Power (300 MW at ₹3.44 ($0.0411)/kWh), and Avaada Energy (250 MW at ₹3.47 (~$0.0414)/kWh).

Background

NTPC initiated this petition under Section 63 of the Electricity Act, 2003 to adopt tariffs for 1,000 MW ISTS-connected wind-solar hybrid projects. Following the tender’s issuance on February 1, 2024, NTPC received bids totaling 1,650 MW, of which 1,000 MW were allocated to the winners after the reverse auction.

NTPC contended that the bidding process was conducted transparently to ensure fair competition and discover the lowest tariffs. NTPC also highlighted that the bidding and evaluation process strictly followed the guidelines as certified by the Bid Evaluation Committee.

It acknowledged that it approached the Commission beyond the 15-day deadline. The delay was due to evaluations and approvals essential for compliance. NTPC requested the Commission to condone this delay.

The public sector company indicated ongoing efforts to identify and secure agreements with end procurers. It said it planned to sign the power purchase agreements with developers once power sale agreements were finalized with the distribution companies.

Commission’s analysis

The Commission concluded that NTPC’s petition met all regulatory requirements for adopting tariffs. Therefore, the tariffs for each successful bidder were approved, subject to NTPC formalizing power purchase agreements with the hybrid power generators and the power sale agreements with end procurers.

The CERC also approved a trading margin of ₹0.07 (~$0.00083)/kWh, with the condition that NTPC provides payment security or escrow arrangements. If NTPC fails to meet these conditions, the trading margin will be capped at ₹0.02 (~$0.00024)/kWh.

The Commission condoned the delay in NTPC’s filing the petition for adopting the tariffs.

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