The Central Electricity Regulatory Commission (CERC) has approved tariffs ranging between ₹2.79 (~$0.038)/kWh and ₹2.83 (~$0.039)/kWh for 480 MW of wind power projects (Tranche -VII) connected to the inter-state transmission system (ISTS).

The tariffs were discovered in the competitive bidding process.  The tender was issued by the Solar Energy Corporation of India Limited (SECI).

For the trading margin of ₹0.07 (~$0.001)/kWh, the Commission has directed SECI to have a mutual agreement with the two distribution licensees – Kerala State Electricity Board (KSEB) and Uttar Pradesh Power Corporation Limited (UPPCL).

The capacities allocated to the two buying utilities – KSEB and UPPCL are 100 MW and 380 MW, respectively.

In February 2020, the Solar Energy Corporation of India Limited had filed the petition before the CERC for the adoption of tariffs for 480 MW of wind power projects connected to ISTS.

SECI had submitted that it issued a request for selection (RfS) along with draft power purchase agreements (PPA) and power sale agreements (PSA) for setting up of 1,200 MW of wind power projects under Tranche VII.

In the petition, SECI had stated that the wind power projects are scheduled to be commissioned in 2020-21, and the projects would help the distribution licensees in meeting their renewable purchase obligations (RPO) requirements apart from providing Power at economical rates.

Further, SECI had stated that it has agreed to sell a cumulative capacity of 480 MW of wind power to KSEB and UPPCL at the rate of ₹2.81 (~$0.038)/kWh including the trading margin of  ₹0.07 (~$0.001)/kWh.

The auction was carried out for a cumulative capacity of 600 MW in May 2019. Out of this, a total of 480 MW was allotted to the four bidders.

The four shortlisted bidders were Betam Wind Energy Private Limited, Ostro Energy Private Limited, Sprng Vaayu Urja Private Limited, and Adani Park Gujarat Limited.

Betam Wind (Engie)had bid for 200 MW of wind projects at a tariff of ₹2.79 (~$0.038)/ kWh. Ostro Energy (ReNew Power) bid for 50 MW at ₹2.81 (0.038)/ kWh, Sprng Vaayu Urja (Actis) had bid for 100 MW at ₹2.82 (~$0.038)/ kWh while Adani had bid for 250 MW at a tariff of ₹2.83 (~$0.09)/ kWh. Betam Wind is the subsidiary of Engie, while Ostro Energy is the subsidiary of ReNew Power.

SECI was the intermediary agency in the purchase and sale of Power under the PPAs and power sale agreements (PSAs) with the successful bidders on a back-to-back basis.  After the issuance of Letters of Award and the allocation of the individual capacities, SECI entered the PSAs in September 2019 with KSEB and in October 2019 with UPPCL.

Similarly, the Kerala State Electricity Regulatory Commission (KSERC) recently approved a tariff of ₹2.83 (~$0.04)/kWh to procure 200 MW of wind power. The power sale agreement (PSA) was signed between the Karnataka State Electricity Board (KSEB) and Solar Electricity Commission of India (SECI) in June 2019 and later amended on December 12, 019.