The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.5 (~$0.028)/kWh for Solar Energy Corporation of India’s (SECI) 100 MW solar project.

The Commission also approved a trading margin of ₹0.07 (~$0.0008)/kWh for the 100 MW capacity won by AMP Energy Green.

Background

SECI had floated a tender to set up 1,200 MW interstate transmission system (ISTS)-connected solar projects under Tranche VIII.

It received 11 bids totaling 4,000 MW. Eight bidders were shortlisted, and letters of award were issued to four bidders for a total capacity of 1,200 MW.

In 2020, SECI awarded 600 MW, 100 MW, and 300 MW to SBE Renewables Fifteen, AMP Energy Green, and EDEN Renewable Alma, respectively, at a tariff of ₹2.5 (~$0.028)/kWh.

ReNew Solar Power won 200 MW at a tariff of ₹2.51 (~$0.028)/kWh.

In 2023, SECI approached CERC to approve the discovered tariff for a 1,200 MW capacity, but SECI had only signed power purchase agreements (PPAs) for 1,100 MW of projects.

The Commission approved the tariffs discovered through the competitive bidding process for the 1,100 MW projects in 2024.

It also ordered SECI to approach the Commission for approval of the tariff once the remaining 100 MW is tied up under PPAs and power sale agreements (PSAs).

Further, SECI signed a PSA for the 100 MW with West Bengal State Electricity Distribution Company (WBSEDCL) and a PPA with AMP Energy Green.

In addition to the tariff, SECI said that the WBSEDCL has agreed to a trading margin of ₹0.07 (~$0.0008)/kWh in the PSA.

Commission’s Analysis

The Commission observed that the tariffs were discovered through a competitive bidding process.

It noted that since SECI successfully signed PPAs and PSAs for the entire 1,200 MW capacity, the Commission approved the tariffs discovered through the auction.

The Commission also approved the mutually agreed trading margin of ₹0.07 (~$0.0008)/kWh for the PSA between WBSEDCL and AMP Energy Green.

However, if SECI fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving line of credit to the solar generators, the trading margin will be limited to ₹0.02 (~$0.0002)/kWh.

In March 2025, the CERC approved tariffs of ₹2.52 (~$0.0293)/kWh and ₹2.53 (~$0.0294)/kWh for SJVN’s 1,200 MW ISTS-connected solar projects.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.