The Central Electricity Regulatory Commission (CERC) has approved tariffs ranging from ₹3.43 (~$0.04)/kWh to ₹3.46 (~$0.04)/kWh for NTPC’s 1 GW interstate transmission system (ISTS)-connected wind-solar hybrid power projects.

The Commission rejected NTPC’s request to approve a trading margin of ₹0.07 (~$0.0008)/kWh. Since the awarded capacity is yet to be tied up with the distribution licensees, the trading margin will be as per the provisions of power sale agreements entered into between NTPC and the distribution licensees.

Background

The petitioner, NTPC, floated a tender to develop 1 GW of ISTS-connected wind-solar hybrid power projects along with a power purchase agreement (PPA) and PSA.

The petitioner received bids for a cumulative capacity of 2,170 MW from nine bidders. Eight bidders qualified for the techno-commercial round, of which seven were shortlisted for the e-reverse auction.

After the e-reverse auction, the petitioner issued letters of award to five companies. Avaada Energy was awarded 230 MW at a tariff of ₹3.46 (~$0.04)/kWh. Adyant Enersol was awarded 70 MW and JSW Neo Energy 300 MW both at a tariff of ₹3.45 (~$0.04)/kWh.

Juniper Green Energy and TEQ Green Power IX were awarded 150 MW and 250 MW at tariffs of ₹3.43 (~$0.04)/kWh and ₹3.45 (~$0.04)/kWh, respectively.

The petitioner approached the CERC to approve the discovered tariffs and a trading margin of ₹0.07 (~$0.0008)/kWh.

Commission’s Analysis

The Commission approved the tariffs, noting that they were determined through a fair and transparent competitive bidding process.

For the expeditious adoption of tariffs, the Commission approved the tariffs before the entire awarded capacity was tied up.

The Commission ordered NTPC to inform it when the awarded capacity gets tied up under PPAs and PSAs. NTPC must notify the Commission if it fails to tie up the awarded capacity.

It held that the trading margin would be per the PSAs between NTPC and the distribution companies. If NTPC fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the wind solar power generators, the trading margin will be limited to ₹0.02 (~$0.00023)/kWh.

Recently, CERC approved the tariffs between ₹3.27 (~$0.037)/kWh and ₹3.32 (~$0.038)/kWh for NTPC to procure 1,500 MW of power from ISTS-connected wind-solar hybrid power projects.

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