ReNew Power and Adani Winners in Punjab’s 250 MW of Solar Auction

The Punjab State Electricity Regulatory Commission (PSERC) recently adopted tariffs to procure 250 MW of solar power. The Commission approved the procurement of 100 MW of solar power from ReNew Dinkar Jyoti at ₹2.33 (~$0.03)/kWh and 150 MW of solar power from Adani Renewable Energy Holding Fifteen at ₹2.34 (~$0.031)/kWh.

Punjab State Power Corporation Limited (PSPCL) had filed a petition seeking the adoption of tariff for 250 MW of solar power selected through a competitive bidding process and the procurement of power.

Background    

PSPCL invited bids to procure 250 MW of solar power from projects located anywhere in India on May 1, 2021. The ceiling tariff for the tender was set as ₹2.50 (~$0.033)/kWh.


Later, the Commission had approved some of the deviations sought by PSPCL and the requisite amendments in the tender documents.

After the e-reverse auction process, ReNew Dinkar Jyoti was awarded 100 MW at ₹2.33 (~$0.03)/kWh, and Adani Renewable Energy Holding Fifteen 150 MW at ₹2.34 (~$0.031)/kWh.

The state distribution company (DISCOM), in its submission, said that the Commission had prescribed a solar renewable purchase obligation (RPO) target of 8% for the FY 2022-23. The scheduled commercial operation date of the project was 18 months from the date of execution of the PPA and should be commissioned in FY 2023-24, helping PSPCL meet its RPO requirements.

Further, the DISCOM added that the tariff of ₹2.33 (~$0.03)/kWh for 100 MW and ₹2.34 (~$0.031)/kWh for 150 MW was competitive and beneficial to PSPCL and its consumers.

Commission’s analysis

The Commission observed that a transparent bidding process, per the guidelines issued by the Ministry of Power under Section 63 of the Electricity Act, was followed to discover the said tariff.

Further, the state regulator added that the tariffs of ₹2.33 (~$0.03)/kWh and ₹2.34 (~$0.031)/kWh discovered through the e-reverse auction process were competitive and reasonable in the prevailing circumstances.

Considering the facts, the Commission approved the procurement of 250 MW of solar power and adopted the tariffs for the above projects.

Further, the Commission directed PSPCL to publicly disclose the names of the successful bidders and the tariff quoted by them after the execution of the power purchase agreements (PPAs) per the guidelines.

In February last year, PSERC approved the procurement of 500 MW of solar-wind hybrid power from SECI at a tariff of ₹2.69 (~$0.036)/kWh with a trading margin of ₹0.02 (~$0.0002)/kWh. The Commission directed PSPCL to execute the amended power sale agreement at the approved tariff and trading margin.

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