The Central Electricity Regulatory Commission (CERC) has adopted the tariff of ₹2.54 (~$0.035)/kWh for 1,150 MW of solar projects allocated to ReNew Solar Power (300 MW), Azure Power (300 MW), Ayana Renewable (300 MW), and Mahindra Susten (250 MW).

It directed the parties to mutually agree on the trading margin for long-term transactions. It also directed the Solar Energy Corporation of India (SECI) to intimate CERC before initiating the competitive bidding process in the future.

SECI had filed a petition before the Commission to adopt a tariff of ₹2.54 (~$0.035)/kWh for 1,150 MW of solar power projects (Tranche IV) selected through a competitive bidding process. It had also sought a trading margin of ₹0.07 (~$0.0009)/kWh.

Context

SECI had issued a request for selection to set up 1,200 MW of interstate transmission system (ISTS)-connected solar power projects (Tranche IV) in February 2019. Seven bids were received for an aggregate capacity of 2,100 MW. Six bids with an aggregate capacity of 1,800 MW were shortlisted for the e-reverse auction. After the e-reverse auction, SECI had agreed to sell the entire 1,150 MW of solar power to the distribution licensees at the discovered rate of ₹2.54 (~$0.035)/kWh and a trading margin of ₹0.07 (~$0.0009)/kWh.

On July 25, 2019, SECI had issued letters of award (LoA) to ReNew Solar Power, Azure Power, and Ayana Renewable for 300 MW each, and Mahindra Susten for 250 MW.

Commission’s Analysis

After considering the facts, the Commission noted that SECI was required to procure power by entering into PPAs with the successful bidders with back-to-back power sale agreements (PSAs) to sell power to the distribution licensees.

After issuing the LoAs to the four companies, SECI entered into PSAs with Haryana Power Purchase Center and Madhya Pradesh Power Management Company.

The regulator said that SECI had carried out the bidding process as per the guidelines, and the tariff of ₹2.54 (~$0.035)/kWh was discovered through a transparent process.

In August last year, CERC approved tariffs for 480 MW of solar projects discovered by SECI in its auction for a 1.2 GW tender (Tranche-V). In its order, the Commission approved tariffs of ₹2.53 (~$0.034)/kWh and ₹2.65 (~$0.035)/kWh for 150 MW and 330 MW of projects quoted by GRT Jewellers India and Softbank Energy, respectively.

Earlier, CERC had approved a tariff of ₹2.69 (~$0.036)/kWh discovered by SECI for 600 MW of wind-solar hybrid projects (Tranche II) under the ISTS program.

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