The Central Electricity Regulatory Commission (CERC) has adopted tariffs discovered through competitive bidding for 2.37 GW of ISTS-connected renewable energy projects with energy storage systems on a “Build-Own-Operate” basis. The order came in response to a petition filed by SJVN seeking adoption of tariffs under Section 63 of the Electricity Act, 2003.

The Commission adopted tariffs of ₹4.38 (~$0.0523)/kWh for 650 MW and ₹4.39 (~$0.0524)/kWh for 534 MW for initially allocated capacity (1,184 MW). For capacity under Greenshoe Option (1,184 MW), it adopted the tariff of ₹4.38 (~$0.0523)/kWh.

Background

SJVN, designated as a Renewable Energy Implementing Agency by the Ministry of New and Renewable Energy (MNRE), had issued a Request for Selection (RfS) on June 20, 2023, for 1,500 MW of firm and dispatchable power from ISTS-connected renewable energy projects with energy storage systems. The RfS was later amended to include a “Greenshoe Option” for an additional capacity of up to 1,500 MW.

The bidding process involved a single-stage, two-envelope system followed by an e-reverse auction. Seven bidders qualified for the issuance of Letters of Award (LoAs) with a total capacity of 1,184 MW. Subsequently, under the Greenshoe Option, an additional 1,184 MW was allocated to the successful bidders.

The successful bidders and their allocated capacities were: ACME Cleantech Solutions (570 MW), Tata Power Renewable Energy (460 MW), Renew Solar Power (418 MW), Juniper Green Energy (320 MW), Hero Solar Energy (270 MW), Solarcraft Power India (150 MW), and TEQ Green Power (180 MW). These allocations include both the initial capacity, and the additional capacity awarded under the Greenshoe Option, totaling 2,368 MW of renewable energy projects with energy storage systems.

SJVN has executed Power Sale Agreements with distribution companies (DISCOMs) for the entire 2,368 MW capacity. The DISCOMs were Maharashtra State Electricity Distribution for 1,468 MW, Haryana Power Purchase Centre for 800 MW, and Noida Power Company for 100 MW.

Commission’s Analysis

The CERC examined whether the bidding process adhered to the provisions of the “Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid-Connected Renewable Energy Power Projects with Energy Storage Systems” issued by the Ministry of Power on June 9, 2023.

The Commission found that SJVN had conducted a transparent bidding process in accordance with the guidelines. It noted that SJVN had constituted a Tender Committee, published the RfS in national newspapers, and followed the prescribed evaluation criteria.

The adopted tariffs will remain valid throughout the period covered in the Power Purchase Agreements  and Power Sale Agreements.

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