The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.44 (~$0.034)/kWh adopted by the Solar Energy Corporation of India (SECI) to sell 600 MW of solar power allocated to ACME Solar to distribution licensees in Haryana and Bihar.
Regarding the trading margin, the Commission asked the contracting parties to agree on it mutually. Further, the Commission asked SECI to inform the Commission before initiating the bidding process in the future, which SECI failed to do in this case.
In February 2018, SECI had issued the request for selection (RfS) to set up 3,000 MW of ISTS-connected solar power projects (Tranche II).
The reverse auction for the eleven technically qualified bidders was conducted on July 13, 2018, and ACME Solar Holdings Limited was declared the successful bidder with a total capacity of 600 MW at the tariff of 2.44 (~$0.034)/kWh. The letters of award were issued to special purpose vehicles (SPVs), ACME Deoghar Power Private Limited, and ACME ACME Dhaulpur Private Limited for 300 MW each.
SECI, in its submission, said that it had agreed to sell the entire 600 MW of solar power to the distribution licensees at the rate of ₹2.44 (~$0.034)/kWh in addition to the trading margin of ₹0.07 ($0.0009)/kWh.
Based on the request of the distribution licensees, 400 MW capacity was allocated to Haryana Power Purchase Center (HPPC), and 150 MW of solar power was allocated to North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). The remaining 50 MWs were allocated to the electricity department, the government of Puducherry.
Subsequently, SECI entered the PSAs with Haryana and Bihar. The PSA with the electricity department of the government of Puducherry is yet to be executed. SECI signed the PPA with ACME on December 07, 2018.
A few days ago, the CERC also approved a tariff of ₹2.60 (~$0.036)/kWh adopted by the National Thermal Power Corporation (NTPC) to sell 600 MW of solar power allocated to SB Energy Six Private Limited to distribution licensees in Bihar and Punjab.
According to Mercom’s India Solar Project Tracker, SECI has tendered 12.2 GW under the ISTS program (Tranche I to VIII) and has auctioned 8.84 GW under ISTS Tranche I to VIII.
Image credit: Azure Power
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.