The Central Electricity Regulatory Commission (CERC) has approved tariffs of ₹3.35 (~$0.0356)/kWh and ₹3.36 (~$0.0357)/kWh for NTPC’s 1,200 MW wind-solar hybrid projects.

The Commission allowed NTPC to approach it later for tariff approval for the additional 600 MW greenshoe capacity.

Background

In October 2024, NTPC issued a request for selection to set up 1,200 MW of wind-solar hybrid projects, with a greenshoe option of up to 600 MW.

A total of 12 bidders qualified for the tender, quoting for a capacity of 3,020 MW. The e-reverse auction in March 2025 discovered tariffs ranging from ₹3.35 (~$0.0356)/kWh to ₹3.36 (~$0.0357)/kWh. In June 2025, NTPC sent letters of award (LoAs) to four bidders for a total capacity of 1,200 MW. The selected bidders were: EG Solwin Renewables (300 MW); Welspun Renewable Energy (250 MW); NLC India (450 MW); and Adani Renewable Energy Holding Twelve (200 MW).

NTPC approached CERC in August 2025 to approve tariffs ranging of ₹3.35 (~$0.0356)/kWh and ₹3.36 (~$0.0357)/kWh, with a trading margin of ₹0.07 (~$0.00074)/kWh. This was a 126-day delay beyond the required 15-day limit for filing the petition after the e-reverse auction.

On why it awarded only 1,200 MW and not the greenshoe capacity, NTPC stated that long-term power sale agreements (PSAs) with distribution companies/end buyers were still pending for a significant portion of the capacity. This uncertainty led NTPC to assess market conditions and the likelihood of tying up capacity before issuing the LoAs.

NTPC argued that awarding the greenshoe capacity immediately could have created stranded capacity risks and uncertainty in power offtake.

On why it delayed in filing the petition, NTPC submitted that it had to spend significant time assessing supply conditions and the projects’ viability and bankability, given changes in the market and procurement conditions across states. It contended that the bidding process was competitive.

Referring to an earlier CERC order approving tariffs ranging from ₹3.43 (~$0.0364)/kWh to ₹3.46 (~$0.0368)/kWh, NTPC highlighted that the tariffs it requested approval for were lower.

NTPC also sought liberty to approach CERC later for tariff approval for the greenshoe capacity and adjust the current petition’s filing fee against the future petition.

Commission’s Analysis

The Commission noted that NTPC’s bidding process was competitive and had significant participation.

It directed NTPC to file tariff approval processes on time in the future.

The Commission observed that the discovered tariffs were reasonable e given the prevailing market conditions.

CERC approved a tariff of ₹3.35 (~$0.0356)/kWh for EG Solwin Renewables, Welspun Renewable Energy, and NLC India, and ₹3.36 (~$0.0357)/kWh for Adani Renewable Energy Holding Twelve.

CERC proceeded with the tariff adoption despite the pending PSAs, stating that it was appropriate not to wait until the entire awarded capacity was tied up under power purchase and sale agreements to support expediting tariff adoption.

The Commission directed NTPC to submit the power purchase/sale agreements once finalized and inform CERC if the awarded capacity does not materialize into such agreements.

It allowed NTPC to approach it later regarding the greenshoe capacity.

CERC approved the trading margin as determined under the PSA, but added it would be capped at ₹0.02 (~$0.0002)/kWh if an escrow arrangement or an irrevocable, unconditional, revolving letter of credit was not provided.

Recently, CERC adopted tariffs of ₹3.32 (~$0.035)/kWh and ₹3.33 (~$0.036)/kWh for SJVN’s 1.2 GW of interstate transmission system-connected solar power projects with 600 MW/2.4 GWh energy storage systems.

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