The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.90 (~$0.034)/kWh [100 MW] and ₹2.95 (~$0.035)/kWh [500 MW] plus a trading margin of ₹0.07 (~$0.0008)/kWh for Solar Energy Corporation of India’s (SECI) 600 MW wind power projects (Tranche-XIII).

The projects will be connected to the interstate transmission system (ISTS), and project developers were selected through a competitive bidding process.

Background

SECI had filed a petition to adopt a tariff for the wind projects.

The respondents in the case were GRIDCO, SJVN, Teq Green Power XI (O2 Power), SJVN Green Energy, and Scatec India Renewable One (Scatec).

SECI highlighted that the wind power projects would help the distribution licensees to meet their Renewable Purchase Obligations requirements apart from providing power at very economical rates.

Following the conclusion of the e-reverse auction, the successful bidders were announced as follows:

• SJVN: 100 MW at a tariff of ₹2.90 (~$0.034)/kWh
• Scatee India II B.V. 300 MW at a tariff of ₹2.95 (~$0.034)/kWh
• Teq Green Power XI: 200 MW at a tariff of ₹2.95(~$0.034)/kWh.

On January 19, 2023, SECI issued Letters of Award to the selected bidders.

Commission’s Analysis

As per Clause 5.1(b) of the guidelines, the procurer must inform the appropriate Commission about the commencement of the bidding process. In line with this, SECI, through its letter dated January 31, 2022, notified the Commission about initiating the competitive bidding process under the tender dated January 12, 2022.

At the request of distribution licensees, SECI assigned GRIDCO the 600 MW capacity.

On June 9, 2023, SECI entered into a power sale agreement with GRIDCO and signed PPAs with the three selected bidders.

The Commission endorsed the individual tariff for the wind power projects, as agreed upon by the successful bidders and established through PPAs entered into by SECI based on the PSAs with the distribution licensee.

Earlier, CERC approved the tariff for Solar Energy Corporation of India’s 1200 MW wind projects and said that the increase in GST rates on renewable energy devices, following the Ministry of Finance’s notification post-July 6, 2021, was a Change in Law event.

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