The Central Electricity Regulatory Commission (CERC) has adopted tariffs for 1,080 MW of interstate transmission system (ISTS)-connected wind-solar hybrid power projects awarded by NTPC.

NTPC selected four bidders: Solalite Power (O2 Power) with 300 MW at ₹3.35 (~$0.0402)/ kWh, Sprng Energy with 250 MW at ₹3.35 (~$0.0404)/ kWh, ACME Cleantech Solutions with 300 MW at ₹3.36 (~$0.0405)/kWh and Juniper Green Energy with 230 MW at ₹3.36 (~$0.0405)/kWh.

Background

NTPC had issued a Request for Selection (RfS) for setting up 1,500 MW of ISTS-connected wind-solar hybrid power projects anywhere in India. The tender was conducted by the Ministry of Power on August 21, 2023.

Initially set to close on October 17, 2023, the bid submission deadline saw multiple extensions, finally concluding on November 29, 2023. The process attracted five bidders who collectively proposed projects totaling 1,380 MW, short of the tendered 1,500 MW capacity.

The financial bids were opened on December 22, 2023, followed by an e-reverse auction on December 27, 2023. This competitive process resulted in the selection of four successful bidders for a total capacity of 1,080 MW. NTPC issued Letters of Award to these successful bidders on January 11, 2024.

It requested the Commission to adopt the tariffs discovered by competitive bidding.

Commission’s Analysis

The CERC examined whether the bidding process followed the government guidelines. NTPC constituted a committee for bid evaluation, which certified that the evaluation criteria were strictly complied with and the process was transparent.

The Commission noted a delay in NTPC approaching CERC for tariff adoption, as required within 15 days of tariff discovery. NTPC attributed this to internal approval processes and being the first tender under the new guidelines.

CERC considered NTPC’s submission that tariff adoption and PPA/PSA approval are separate processes and that early tariff adoption would provide regulatory certainty and help tie up power with state utilities.

In a departure from past practice, the Commission decided to adopt the tariffs without waiting for the capacity to be tied up under power purchase and sale agreements, subject to NTPC securing these agreements in the future.

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