The Central Electricity Regulatory Commission (CERC) has approved tariffs of ₹3.98 (~$0.046)/kWh and ₹3.99 (~$0.0464)/kWh for SJVN’s 600 MW interstate transmission system (ISTS)-connected wind power projects.

The Commission also approved the trading margin per the Power Sale Agreements (PSA).

Background

The petitioner, SJVN, issued a tender to set up  600 MW ISTS-connected wind power projects on a build-own-operate basis.

It received three bids for a cumulative capacity of 220 MW.

Two bidders qualified for the e-reverse auction, and letters of award were issued for a cumulative capacity of 170 MW.

The petitioner issued a letter of award for 70 MW to Adyant Enersol at ₹3.98(~$0.046)/kWh and 100 MW to UPC Renewables India Management at ₹3.99 (~$0.0464)/kWh.

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

Commission’s Analysis

CERC observed that the bidders were selected through transparent and competitive bidding.

The Commission, referring to the Ministry of Power’s Wind Guidelines, approved the tariff for the complete 600 MW awarded capacity even though the petitioner had only tied up 170 MW. The guidelines call for an expeditious tariff adoption process.

CERC directed the petitioner to inform when the remaining awarded capacity gets tied under the PPAs and PSAs.

Since the full awarded capacity is yet to be tied up with the distribution companies (DISCOM), the Commission held that the trading margin would be determined per the PSA between SJVN and the DISCOMs.

The Commission ordered that the trading margin be limited to ₹0.02 (~$0.00023)/kWh if SJVN fails to provide an escrow arrangement of irrevocable, unconditional, and revolving letter of credit to the wind power generators.

Recently, CERC approved the adoption of tariffs of ₹2.52 (~$0.0292)/kWh and ₹2.53 (~$0.0294)/kWh for NHPC’s 3 GW grid-connected solar projects. The Commission also approved a trading margin of ₹0.07 (~$0.0008)/kWh.

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