The Haryana Electricity Regulatory Commission (HERC) has asked the Haryana Power Purchase Centre (HPPC) to follow the latest competitive bidding guidelines issued by the Ministry of New and Renewable Energy (MNRE) for procurement from solar photovoltaic (PV) projects.

HERC has also ordered the HPPC to award 140 MW of solar PV to ACME Solar Holding Limited if it agrees to match the lowest (L1) tariff discovered in the auction conducted by HPPC to procure 300 MW of solar to meet renewable purchase obligations (RPO).

The HERC was going through petitions filed by ACME Solar and Tepsol Green Energy Pvt. Ltd.

ACME Solar had requested that the HERC order HPPC to offer preferential treatment as ACME had participated in the initial auction that had been proposed by HPPC to procure solar in 2015. In that auction, ACME had been issued a letter of intent (LoI) for 140 MW of solar at a tariff of ₹5 (~$0.072)/kWh. Later that auction was nullified by HPPC, and it issued another tender to procure 300 MW solar in January 2019.

Tepsol Green Energy had petitioned the HERC seeking amendments regarding the timeline for acquisition of land, attaining financial closure and commissioning schedule in the Request for Proposal (RfP) document and in the draft power purchase agreement for the procurement of 300 MW solar PV.

In ACME Solar’s case, HERC observed that if preferential treatment is provided, it will adversely affect the competitive bidding process and will be against the principles of reverse auction. But, keeping in mind that ACME had shown initial interest in developing a solar PV project and supplying power to HPPC, the HERC ordered that if ACME Solar is willing to match the lowest (L1) tariff quoted in the current auction, it will be awarded the 140 MW capacity it had bid for in 2015.

In Tepsol’s case, HERC said that the RfP and the draft PPA have to abide by the guidelines for competitive bidding framed by Ministry of Power along with its amendments from time to time, prevalent on the date of floating RfP unless it (HERC) approves deviations.

HERC directed HPPC to amend RfP approved earlier according to the amended “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects” issued by the Ministry of Power.