The Central Electricity Regulatory Commission (CERC)  has adopted the tariffs for Solar Energy Corporation of India’s (SECI) 900 MW wind-solar hybrid power projects (Tranche VII).

The Commission approved the tariffs of ₹3.15 (~$0.037) /kWh and  ₹3.21 (~$0.038)/kWh and a trading margin of ₹0.07(~$0.00083)/kWh.

Background

The petition arose from SECI’s issuance of a tender in October 2023  to set up 2 GW of ISTS-connected wind-solar hybrid power projects. SECI received five qualified bids totaling 1,265 MW. The process culminated in a competitive e-reverse auction, which finalized the tariffs.

SECI issued letters of award to three winning bidders: NTPC Renewable Energy (300 MW at ₹3.15 (~$0.037)/kWh), Juniper Green Energy (150 MW at ₹3.21 (~$0.038)/kWh), and Green Infra Wind Energy (450 MW at ₹3.21 (~$0.038)/kWh).

SECI later executed Power Purchase Agreements (PPAs) with these bidders and a Power Sale Agreement (PSA) with Punjab State Power Corporation (PSPCL) for the entire 900 MW.

SECI contended that its tariff discovery was conducted through a transparent and competitive process, adhering strictly to the Ministry of Power’s “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Projects.”

SECI sought CERC’s endorsement of the tariffs, emphasizing their consistency with market trends. It also justified a delay in filing the petition, noting that prior instructions from CERC required the adoption petition to follow the finalization of PSAs and PPAs.

The primary respondent, PSPCL, raised no objections to adopting the tariff, contingent on obtaining approval from the State Commission. However, Green Infra Wind Energy and the other two developers highlighted concerns about transmission delays.

These parties argued that the lack of timely connectivity, attributed to the Central Transmission Utility of India, could prevent them from meeting the scheduled commencement of the power supply date. They urged CERC to consider potential delays when evaluating the tariff adoption.

Commission’s Analysis

CERC concluded that SECI’s bidding process met all regulatory requirements and adopted the tariffs as requested. The tariffs for NTPC, Juniper Green, and Green Infra Wind Energy’s hybrid projects were set at 3.15 (~$0.037)/kWh and ₹3.21 (~$0.038)/kWh, per the finalized agreements.

CERC approved the trading margin of ₹0.07 (~$0.00083)/kWh.

CERC also reviewed the respondents’ claims regarding connectivity delays. It clarified that these delays fell outside the scope of the current tariff adoption proceedings. CERC emphasized that such issues should be addressed separately, as the primary focus here was adopting tariffs discovered through competitive bidding.

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