The Central Electricity Regulatory Commission (CERC) has approved tariffs of ₹2.52 (~$0.0293)/kWh and ₹2.53 (~$0.0294)/kWh for SJVN’s 1,200 MW interstate transmission system (ISTS)-connected solar projects.

SJVN had also requested adopting a trading margin of ₹0.07 (~$0.0008)/kWh. However, the Commission held that the trading margin would be per the Power Sale Agreements (PSA) between SJVN and the distribution licensees since the complete capacity was not tied up.

Background

The petitioner, SJVN, floated a request for selection (RfS) to set up 1,200 MW ISTS-connected solar power projects. The petitioner also shared standard Power Purchase Agreement (PPA) and PSA documents.

It received 12 bids for a capacity of 3,990 MW, of which five qualified for 1,200 MW.

The tariffs discovered after the e-reverse auction were ₹2.52 (~$0.0293)/kWh and ₹2.53 (~$0.0294)/kWh. The petitioner issued letters of award to the selected bidders after the tariff discovery.

The petitioner had not fully tied up the complete 1,200 MW capacity.

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

The petitioner had not published its RfS in any national newspaper. The Ministry of Power’s Solar Guidelines mandate publishing the RfS in at least two national newspapers. The petitioner had published the notices on the ISN Electronic Tender System e-Tender portal. It later published a newspaper notification informing of the tender’s publication on its website and government portals but not in newspapers.

SJVN had also not submitted a copy of the conformity certificate issued by the bid evaluation committee. It submitted that the bidding process was executed per the bidding guidelines.

The petitioner also argued that its bidding process was transparent and fair.

Commission’s Analysis

The Commission reprimanded the petitioner for non-compliance with the bidding publication requirements and directed it to comply with the provisions in the future.

However, CERC observed that the bidding process and the tariff discovery were transparent and adhered to the bidding guidelines.

While referring to the guidelines, the Commission approved the discovered tariffs for the full 1,200 MW capacity even though it was not completely tied up. The guidelines call for an expeditious tariff adoption process.

The Commission also directed the petitioner to inform when the remaining awarded capacity gets tied up under the PPAs and PSAs.

It held that the trading margin would be per the PSAs between the petitioner and distribution licensees since the awarded capacity was not tied up yet.

The Commission ordered limiting the trading margin to ₹0.02 (~$0.0002)/kWh if the petitioner fails to provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit.

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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