The Central Electricity Regulatory Commission (CERC) has adopted the tariffs for SJVN’s 1,450 MW of interstate transmission system (ISTS)-connected solar power projects.

The Commission approved the tariffs of ₹2.51-₹2.53 (~$0.029-$0.03)/kWh and a trading margin of ₹0.07(~$0.0008)/kWh.

Background

The petitioner, SJVN, had invited bids to procure power from 1,500 MW ISTS-connected solar projects.

The company received ten bids, and five bidders were selected. The letters of award were issued on June 26, 2024. However, one of the awarded bidders, NTPC Renewable Energy, refused to accept the 50 MW awarded to it. Consequently, SJVN accepted the rejected capacity and reduced the aggregate capacity to 1,450 MW.

The petitioner told the Commission that as the intermediary, it entered into a power sale agreement with Punjab State Power Corporation (PSPCL) and entered into power purchase agreements (PPA) with JSW Neo Energy (700 MW), Furies Solren Private (300 MW), Solarcraft Power India 8  (300 MW) and GRT Jewellers (India) (150 MW).

SJVN petitioned the Commission to adopt the tariff discovered through the competitive bidding process.

Commission’s Analysis

Acknowledging that the bidding process was transparent, the Commission adopted the tariffs for which SJVN signed PPAs. The Commission also validated the power sale agreements (PSA) with tariffs of ₹2.52-₹2.53(~$0.029-$0.03)/kWh.

The regulator approved the trading margin of ₹0.07(0.0008)/kWh as agreed in the PSA. However, SJVN must provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit to the solar generators. Failing to meet this criterion, the trading margin will be limited to ₹0.02(~$0.0002)/kWh.

In October, the Commission adopted tariffs of ₹2.56-₹2.57(~$0.03-$0.03)/kWh for Solar Energy Corporation of India’s 1.5 GW solar projects  (Tranche XIII).

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.