The Jharkhand State Electricity Regulatory Commission (JSERC) has approved Damodar Valley Corporation’s (DVC) petition to procure 250 MW of firm and dispatchable renewable energy (FDRE) power on a long-term basis from NHPC.

The Commission has allowed the procurement at a tariff of ₹4.63 (~$0.05165)/kWh, which includes NHPC’s trading margin of ₹0.07 (~$0.00078)/kWh.

Background

DVC approached the Commission seeking approval of a power sale agreement (PSA) signed with NHPC. In the competitive bidding process, ACME Solar Holdings was selected to develop a project with an installed capacity of 250 MW of solar power, coupled with a 250 MW/1,150 MWh battery energy storage system.

The project is proposed to be located at Kharnai, Rawatbhata, Rajasthan, and is designed to supply assured peak power.

NHPC offered this power to distribution utilities for long-term procurement, following which DVC assessed its future load growth, peak demand requirements, and renewable purchase obligations.

DVC conveyed its consent to procure 250 MW of power from the project at the discovered tariff of ₹4.63 (~$0.05165)/kWh. The PSA between DVC and NHPC was signed on June 11, 2025, and is valid for 25 years from the project’s scheduled commissioning date.

DVC submitted that the procurement would help meet peak demand in its supply area, improve system reliability and flexibility, and support compliance with renewable purchase obligations applicable in Jharkhand and West Bengal.

It also highlighted that since the agreement was signed within the stipulated timeframe, the power procured would be eligible for waiver of interstate transmission system charges.

NHPC, through its commercial division, supported the petition and requested that the Commission approve the PSA without modification.

Commission’s  Analysis

The Commission noted that the tariff of ₹4.63 (~$0.05165)/kWh, inclusive of NHPC’s trading margin, was found to be in accordance with the bidding outcome and regulatory framework.

It concluded that the proposed procurement would support peak power availability, enhance system reliability, and assist DVC in meeting its renewable purchase obligations.

Finding no regulatory infirmity in the PSA, the Commission allowed the petition. It formally approved the agreement for the procurement of 250 MW of FDRE power backed by battery storage from NHPC at the approved tariff.

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