The Central Electricity Regulatory Commission (CERC) has adopted tariffs ranging between ₹3.43 (~$0.0395) and ₹3.46 (~$0.0398)/kWh for 1,200 MW wind-solar hybrid power projects (Tranche-VIII).

The tariffs were discovered through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI).

The Commission directed SECI to ensure the completion of the power purchase agreements (PPA) and power sale agreements (PSA).

Background

SECI had filed a petition before CERC seeking approval for adopting the tariffs and a trading margin of ₹0.07 (~$0.0008)/kWh for the 1,200 MW wind-solar hybrid power projects.

SECI initiated the process with a request for selection (RfS) on February 20, 2024, for projects connected to the interstate transmission system (ISTS). The bidding process was conducted through an e-reverse auction, which saw participation from eight bidders offering a total capacity of 2,160 MW.

Six bidders — Juniper Green Energy, Avaada Energy, Adyant Enersol, AMPIN Energy Utility, Asurari Renewables India Project, and JSW Neo Energy – were chosen and issued letters of award on June 20, 2024.

Commission’s Analysis

The Commission determined that the bidding process conducted by SECI was fair, competitive, and transparent, as per the guidelines set by the Ministry of Power.

The central regulator reviewed SECI’s bid evaluation committee reports, confirming that the auction was done without deviations from the prescribed rules.

It found that the discovered tariffs were reasonable and consistent with market conditions, ensuring affordability for end consumers while maintaining financial viability for power producers.

CERC also approved SECI’s trading margin of ₹0.07 (~$0.0008)/kWh but imposed a condition that this rate would only apply if SECI provides adequate financial security measures such as an escrow arrangement or an irrevocable, unconditional letter of credit. If these conditions are not met, the trading margin will be capped at ₹0.02 (~$0.0002)/kWh.

The commission also instructed SECI to submit copies of executed PPAs and PSAs once the awarded capacity is fully tied up. If the agreements are not carried out, SECI must inform CERC of the reasons for the delay.

The awarded projects must achieve financial closure six months before the scheduled supply date. Additionally, developers must complete the full commissioning of the projects within 24 months from the date of the PPA signing. Failure to meet these deadlines will attract penalties.

Recently, the CERC approved SECI’s petition to adopt a tariff of ₹2.6 (~$0.0299)/kWh for 900 MW interstate transmission system-connected solar power projects (Tranche- XI).

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