The Central Electricity Regulatory Commission (CERC) has 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 interstate transmission (ISTS)-connected wind-solar hybrid power projects.

The Commission also approved a trading margin per the power sale agreements (PSA) provisions.

Background

NTPC floated a tender for setting up 1,500 MW ISTS-connected wind-solar hybrid power projects.

It received bids for 3,150 MW from seven bidders, and six were techno-commercially qualified.

Four bidders were shortlisted after an e-reverse auction.

ABC Cleantech was awarded 750 MW at a tariff of ₹3.27 (~$0.037)/kWh; Juniper Green Energy was awarded 300 MW at a tariff of ₹3.29 (~$0.037)/kWh, Acme Cleantech Solutions was awarded 150 MW at a tariff of ₹3.22 (~$0.037)/kWh, and Renew Solar Power was awarded 300 MW at a tariff of ₹3.32 (~$0.038)/kWh.

Accordingly, NTPC issued letters of award to all four bidders, asking them to sign the power purchase agreements (PPAs) within 90 days of issuing the letters.

NTPC petitioned the Commission to adopt the discovered tariffs and informed it that the PPAs and PSAs were signed with the successful bidders for 25 years.

It also submitted a conformity certificate stating that the bidding and bid evaluation procedures were conducted transparently. It added that a levelized tariff was discovered through an international competitive bidding process.

NTPC also sought approval for a trading margin of ₹0.07 (~$0.00081)/kWh.

Commission’s Analysis

The Commission observed that intermediate procurers are expected to approach it to approve the tariffs within 15 days of conducting the e-reverse auction. However, NTPC delayed approaching the Commission by 42 days.

NTPC responded that the delay was due to activities involved in filing the petition.

The Commission approved the tariffs discovered in the auction, stating that the competitive bidding process was followed, and it would be beneficial to the procurer and its consumers.

The Commission also directed NTPC to inform if the awarded capacity is not commissioned.

Since the awarded capacity is yet to be tied up with the distribution licensees, the trading margin will be as per the provisions of the PSAs.

NTPC must also provide the bidders an escrow arrangement or irrevocable, unconditional, and revolving letter of credit. Failing to do so will result in a trading margin reduction to ₹0.02 (~$0.00023)/kWh.

Following the new hybrid power guidelines, the Commission also approved the tariffs for the awarded capacity not tied up in PPAs and PSAs.

In February, the CERC approved tariffs ranging between ₹4.64 ($0.053)/kWh and ₹5.25 ($0.060)/kWh for 1,530 MW of renewable energy procured by NTPC through a competitive bidding process.

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