The Central Electricity Regulatory Commission (CERC) has given the green light for a tariff of ₹3.26 (~$0.03)/kWh for a 15 MW grid-connected floating solar project linked to the Bhakra Beas Management Board (BBMB) Inter-State Transmission System (ISTS).

BBMB and SJVN Green Energy, a subsidiary of SJVN, have inked a power purchase agreement (PPA) to allocate power to BBMB’s partner states and nominated entities.

Background

BBMB had submitted a petition under Section 63 of the Electricity Act, 2003, seeking tariff approval for their floating solar project connected to its ISTS network.

The Ministry of New & Renewable Energy (MNRE) assigned BBMB a target of 500 MW for solar power projects, with BBMB exploring solar installations on vacant land, water bodies, and rooftops to meet renewable purchase obligations of partner states.

BBMB authorized the Solar Energy Corporation of India Limited (SECI) as a project management agency to solicit proposals for the 15 MW Nangal Pond floating solar project in Himachal Pradesh, adhering to the guidelines.

SECI published the tender document and a draft PPA for the project on July 2, 2020.

Three bids were received in response, and two met the technical requirements. Following an e-reverse auction on February 25, 2022, SJVN emerged as the winning bidder with a tariff of ₹3.26 (~$0.03)/kWh.

After approval from BBMB’s board, SECI issued a Letter of Intent and an amendment to the successful bidder, SJVN, on October 4, 2022, and December 1, 2022, respectively.

Subsequently, a PPA was executed between BBMB and the successful bidder, SJVN Green Energy, the special purpose vehicle (SPV) of SJVN, on December 23, 2022.

BBMB’s operational expenses are shared among partner states (Punjab, Haryana, Himachal Pradesh, and Rajasthan) based on a pre-agreed ratio, and energy generated is likewise distributed among these states.

Commission’s Analysis

The Commission noted that the parties had conducted the bidding process as per the guidelines.

It noted that BBMB, as the petitioner, will procure power through a PPA with SJVN, distributing it to partner states, including Punjab, Haryana, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, according to predefined proportions.

The Commission also noted that BBMB did not function as an intermediary procurer or trader in this transaction, and no power supply agreement was involved, differing from other procurement methods.

Power generated by SJVN Green Energy will be distributed among partner states/nominated entities in proportion to BBMB’s power generation.

The Commission affirmed the transparency of the competitive bidding process, with the tariff for the floating solar power project being determined in line with the solar guidelines issued by the Ministry of Power under Section 63 of the Act.

Recently, in response to a significant surge in power demand and subsequent reports of load-shedding incidents, the Central Electricity Regulatory Commission (CERC) took a series of strategic measures to mitigate the current power shortage and enhance the grid’s efficiency.

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