The Central Electricity Regulatory Commission (CERC) has given tariff approval for 200 MW of wind projects floated by the National Thermal Power Corporation (NTPC).

NTPC had issued a request for selection (RfS) along with a draft power purchase agreement (PPA) and power sale agreement (PSA) for setting up 2 GW of the interstate transmission system (ISTS) connected wind projects on March 13, 2018. However, the capacity was later revised to 1.2 GW.

An e-reverse auction was conducted for seven technically qualified bidders. Of the 1.2 GW, 1,150 MW was allotted to these successful bidders.

However, some bidders terminated their PPAs because distribution companies (DISCOMs) failed to obtain approvals from their respective state electricity regulatory commissions within the stipulated periods mentioned in the PPAs and PSAs.

The NTPC has sought for the adoption of tariff for 200 MW of wind projects to be established by Sprng Vayu Vidyut Private Limited, the only bidder who did not terminate its PPA on account of required approvals not being obtained from their respective state electricity commissions at a tariff of ₹2.77 (~$0.037)/kWh.

It also sought to adopt a tariff rate of ₹2.77 (~$0.037)/kWh plus a trading margin of ₹0.07 (~$0.0009)/kWh for the sale of 200 MW of wind power to DISCOMs to help them meet their renewable purchase obligations (RPO).

The thermal power generator explained that the pooled tariff discovered from the competitive bidding process is less than the procurement cost of conventional power, and it would be beneficial to the DISCOMs and consumers consequently.

In its order, the CERC stated that NTPC was transparent in conducting the competitive bidding process and adhered to all the guidelines. Consequently, it approved the petitioner’s request for the adoption of a tariff of ₹2.77 (~$0.037)/kWh for 200 MW of wind power to Sprng Vayu Vidyut Private Limited.

Additionally, the commission cited Trading License Regulation 8(1) (d), which states that for transactions under long-term contracts, the trading margin should be mutually decided between the trading licensee and the seller, and declared that the parties have a choice to agree on the trading margin mutually.

It subsequently approved the sale of 200 MW of wind power to buying utilities or distribution licensees at a rate of ₹2.77 (~$0.037)/kWh plus a trading margin of ₹0.07 (~$0.0009)/kWh upon the commissioning of the above capacity.

Earlier, the CERC gave its approval for another batch of 1.2 GW of wind projects floated by SECI at a tariff of ₹2.77 (~$0.039)/kWh. In its petition seeking the CERC’s approval, SECI stated that it had agreed to sell the generated wind power to the DISCOMS at the rate of ₹2.84 (~$0.039)/kWh with a trading margin of ₹0.07 (~$0.00098)/kWh.

Recently, the CERC also approved tariffs ranging between ₹2.79 (~$0.038)/kWh and ₹2.83 (~$0.039)/kWh for 480 MW of wind power projects (Tranche -VII). The auction was carried out for a cumulative capacity of 600 MW in May 2019. Out of this, a total of 480 MW was allotted to the four bidders. The four shortlisted bidders were Betam Wind Energy Private Limited, Ostro Energy Private Limited, Sprng Vaayu Urja Private Limited, and Adani Park Gujarat Limited.