CERC Approves Tariffs for SECI’s 2 GW Solar/4 GWh Energy Storage Projects
It also approved a trading margin of ₹0.07/kWh
October 22, 2025
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The Central Electricity Regulatory Commission has approved tariffs ranging from ₹3.52 (~$0.0422)/kWh to ₹3.53 (~$0.0424)/kWh discovered through Solar Energy Corporation of India’s (SECI) auction for 2,000 MW interstate transmission system (ISTS)-connected solar projects with 1,000 MW/4,000 MWh energy storage systems (ESS).
It also approved a trading margin of ₹0.07 (~$0.0008)/kWh.
However, the Commission directed SECI to provide payment security instruments in the form of escrow or irrevocable, unconditional, and revolving letters of credit to the selected bidders. Otherwise, the trading margin would be capped at ₹0.02 (~$0.00024)/kWh.
Background
SECI was designated the intermediary procurer/renewable energy implementing agency for procuring firm and dispatchable power from grid-connected renewable energy power projects with ESS through competitive bidding.
In July 2024, it issued a request for selection to set up 2,000 MW ISTS-connected solar projects with 1,000 MW/4,000 MWh ESS (Tranche-XVII).
It received 14 bids for an aggregate capacity of 4,820 MW. All bids were considered fully compliant with the techno-commercial criteria and were deemed qualified for financial bidding. Thirteen bidders applied for the e-reverse auction, after which five bidders were selected for a capacity of 2,000 MW for tariffs ranging from ₹3.52 (~$0.0422)/kWh to ₹3.53 (~$0.0424)/kWh.
SECI issued the letters of award in December 2024.
It approached CERC in March 2025 to approve the discovered tariffs along with a ₹0.07 (~$0.0008)/kWh trading margin.
SECI contended that the bidding process was transparent, competitive, and compliant with government guidelines. It also submitted that the discovered tariffs were competitive.
Later, SECI informed the Commission that it had signed back-to-back power sale and purchase agreements with the selected bidders by April 2025.
Commission’s Analysis
The Commission observed that SECI’s bidding process was transparent, competitive, and followed the government’s bidding guidelines.
It approved the discovered tariffs along with the requested trading margin.
However, CERC held that if SECI does not provide payment security instruments in the form of escrow or irrevocable, unconditional, and revolving letters of credit to the power generators, the trading margin would be capped at ₹0.02 (~$0.00024)/kWh.
In September this year, CERC approved a levelized tariff of ₹4.01 (~$0.0455)/kWh for SECI’s 100 MW solar power project integrated with a 40 MW/120 MWh battery energy storage system in Rajnandgaon, Chhattisgarh.
In July, CERC rejected Calcutta Electric Supply Corporation’s petition for approval of a tariff for 300 MW wind-solar hybrid power projects.
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