The Central Electricity Regulatory Commission (CERC) has approved the adoption of the tariff for 1,175 MW wind projects (Tranche-XVI) connected to the Inter-State Transmission System, selected through a competitive bidding process as per the guidelines of the Ministry of Power (MoP).

The order was issued in response to a petition filed by the Solar Energy Corporation of India (SECI) seeking the adoption of a tariff under Section 63 of the Electricity Act.

The Commission adopted the following tariffs:

This includes the 525 MW capacity awarded under the greenshoe option.

Background

SECI filed a petition to adopt the tariffs for the wind projects and approve the trading margin of ₹0.07(~$0.0083)/kWh as agreed to by Uttar Pradesh Power Corporation (UPPCL).

In 2023, SECI submitted a Request for Selection along with a draft Purchase Power Agreement (PPA) and Power Sale Agreement (PSA) documents to set up 1,350 MW ISTS-connected wind projects (Tranche XVI) on a Build-Own-Operate basis.

In response, five bids were received for an aggregate capacity of 500 MW in Gujarat, 350 MW in Karnataka, and 160 MW in Rajasthan. All of them were found to meet the technical criteria.

In February 2024, the Letter of Award (LoA) was issued to JSW Neo Energy, Torrent Power, and Powerica for Gujarat and Karnataka.

Further, per the provisions of the RfS, the successful bidders in Gujarat and Karnataka were also offered the capacity under the greenshoe option.

Under the greenshoe option, the LoAs were awarded to JSW Neo Energy for 350 MW at a tariff of ₹3.61(~$0.043)/kWh and 150 MW capacity at a tariff of ₹3.60 (~$0.043)/kWh in Gujarat and Karnataka, respectively. JSW Neo Energy was also awarded an additional capacity of 25 MW under the greenshoe option in Karnataka.

Commission’s Analysis

The Commission found that SECI certified that the relevant guidelines were followed in the bidding process.

It said that the tariff of the wind power projects was discovered through a transparent process of competitive bidding following MoP guidelines.

It also noted that the distribution licensee agreed to the trading margin of ₹0.07(~$0.0083)/kWh in terms of the PSA.

However, the Commission ruled that if SECI fails to provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit to the wind generators, the trading margin will be limited to ₹0.02 (~$0.0024)/kWh.

In August, CERC adopted tariffs discovered through competitive bidding for 2.37 GW of ISTS-connected renewable energy projects with energy storage systems.