The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.67 (~$0.036)/kWh for SBE Renewable and ₹2.69 (~$0.037)/kWh for Mahoba Solar for the 840 MW of wind-solar hybrid power projects (Tranche I).
With regards to the trading margin of ₹0.07 (~$0.0009)/kWh, the Commission noted that the contracting parties could mutually agree and adopt any trading margin.
The Commission stated that the selection of successful bidders and the determination of tariffs for the projects were carried out by SECI through a transparent bidding process and per the guidelines issued by the Ministry of New and Renewable Energy (MNRE).
SECI had filed a petition for adoption of tariff for 840 MW wind-solar hybrid power projects (Tranche I) connected to the inter-state transmission system (ISTS) and selected through a competitive bidding process.
SECI, in its submission, had stated that it had agreed to sell the entire 840 MW of wind-solar hybrid power to the distribution licensees at the rate of ₹2.67 (~$0.036)/kWh along with a trading margin of ₹0.07 (~$0.0009)/kWh.
The projects are scheduled to be commissioned in the year 2021-22, and it would help the distribution licensees in meeting their renewable purchase obligation (RPO) targets.
SBE Renewables Ten Private Limited (SoftBank) and Mahoba Solar (UP) Private Limited (Adani’s subsidiary) were both found eligible for the e-reverse auction. The e-reverse auction was carried out on December 05, 2018, and both SBE Renewable and Mahoba Solar were declared winners for the development of 450 MW and 390 MW of hybrid power projects, respectively.
Subsequently, based on the request of distribution licensees, Chhattisgarh State Power Distribution Company Limited (CSPDCL) and Haryana Power Purchase Center (HPPC) were allocated 400 MW and 440 MW respectively.
SECI entered into a PPA with Adani Greene Energy Green Limited, parent company of Mahoba Solar (UP) Private Limited on November 28, 2019, and the PPA with SBE Renewable is yet to be executed.
Regarding the tariff discovered, the Commission adopted the tariff of ₹2.67 (~$0.036)/kWh for SBE Renewables and ₹2.69 (~$0.037)/kWh for Mahoba Solar for 450 MW and 390 MW respectively. The Commission noted that the tariff, as agreed by the successful bidders, will remain valid throughout the period covered in the PPAs and PSAs.
The Commission also noted that it is for the contracting parties to arrive at a consensus regarding the trading margin and SECI should be governed by the regulations of the trading license which state:
“For transactions under back to back contracts, where escrow arrangement or irrevocable, unconditional and revolving letter of credit as specified in clause (10) of Regulation 9 is not provided by the trading licensee in favor of the seller, the trading licensee shall not charge trading margin exceeding two ₹0.002(~$0.0003)/kWh.”
Meanwhile, recently, SECI issued a tender for setting up 1,200 MW of interstate transmission-connected wind-solar hybrid power projects in the country under Tranche III of the interstate transmission program.
Earlier, SECI had issued a request for selection for setting up 1.2 GW of renewable projects with a guaranteed peak power supply (ISTS-VII).
According to Mercom’s India Solar Project Tracker, SECI has tendered a total of 3.6 GW of solar wind hybrid projects under the ISTS program (Tranche I to Tranche III) and auctioned 1.56 GW under Tranche I & II.