The Central Electricity Regulatory Commission (CERC) has adopted tariffs for Solar Energy Corporation of India’s (SECI) 1,500 MW interstate transmission system (ISTS)-connected solar projects (Tranche XIII).

The Commission adopted the following tariffs discovered through competitive bidding in March this year:

• JSW Neo Energy: 700 MW at ₹2.56 (~$0.0304)/kWh
• Sunsure Solarpark Fourteen: 300 MW at ₹2.56 (~$0.0304)/kWh
• Tejorupa Renewables India Project: 250 MW at ₹2.56 (~$0.0304)/kWh
• NTPC Renewable Energy: 250 MW at ₹2.57 (~$0.0305)/kWh

Background

SECI filed a petition for the adoption of tariffs for the 1,500 MW solar power projects under Section 63 of the Electricity Act, 2003.

SECI issued the tender on December 29, 2023. The e-reverse auction was conducted on March 7, 2024.

Eleven bidders participated, offering an aggregate capacity of 4,030 MW. Ten qualified bidders with a cumulative capacity of 3,730 MW were shortlisted for the e-reverse auction.

SECI issued letters of award to the successful bidders on March 13, 2024.

Commission’s Analysis

The Commission noted that SECI had followed a transparent bidding process in accordance with the Ministry of Power’s guidelines.

It stated that the trading margin should be as per the terms of the power sale agreements (PSA).  However, if SECI fails to provide escrow or a letter of credit to generators, the trading margin will be limited to ₹0.02 (~$0.00024)/kWh as per regulations.

The central regulator directed SECI to submit copies of power purchase agreements (PPA) and PSAs once the awarded capacities were tied up.

The Commission noted SECI’s delay in approaching CERC for tariff adoption. The guidelines mandate filing tariff adoption petitions within 15 days of tariff discovery. SECI attributed this to past practices of waiting for PPAs/PSAs but committed to timely filings in the future.

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