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The Central Electricity Regulatory Commission (CERC) has approved the tariffs proposed by the Solar Energy Corporation of India (SECI) and PTC India Limited for 2 GW of wind power projects.
The two petitioners had quoted a tariff rate of ₹2.65 (~$0.04)/kWh and ₹3.46 (~$0.05)/kWh, respectively.
The order was issued after two separate petitions filed by the Solar Energy Corporation of India (SECI), and PTC India Limited requested the commission to approve the amount quoted by them for the wind projects (1 GW each).
Background:
The Solar Energy Corporation of India (SECI) and PTC India Limited had filed separate petitions before the CERC seeking its approval for the adoption of tariffs for 2,000 MW (2&#215;1000 MW) of wind power projects connected to the inter-state transmission system (ISTS).
In the petition, SECI requested the commission for the approval of ₹2.65/kWh (~$0.04)/kWh, along with a trading margin of ₹0.07 (~$0.001)/kWh for 1,000 MW of projects.
SECI had also submitted that some of these projects have already been commissioned. As the DISCOMs and wind developers are spread over multiple states, the DISCOMs had approached their respective state electricity regulatory commissions for the approval of the procurement process and the adoption of the tariff.
PTC, which was appointed as the trading licensee agency by SECI, also presented a petition to approve a pooled tariff rate of ₹3.46 (~$0.05)/kWh (including the trading margin of ₹0.07 (~$0.001)/ kWh) for another 1,000 MW of wind projects.
According to the petitioners, the power generated from these projects would also help the buying utilities and distribution companies in meeting their renewable energy purchase obligation (RPO) requirements.
The CERC observed that the selection of the successful bidders and the tariff of the projects had been carried out by SECI in accordance with the guidelines issued by the MNRE. The commission added that there was no deviation from the guidelines in the Request for Selection (RfS) documents.
Considering this, the commission approved the tariffs for the projects.
The two petitioners had also requested for the approval of the trading margin of ₹0.07 (~$0.001)/ kWh for the projects.
However, to this, the commission stated that the CERC could not approve the trading margin for long-term transactions since the new trading margin regulations do not provide the provisions for long-term transactions, and it should be done on a mutually agreed basis. Therefore, the trading margin mutually agreed by the two parties will apply to the projects.
Earlier this year, the CERC <a href="https://mercomindia.com/cerc-regulations-electricity-trading-license/" target="_blank" rel="noopener noreferrer">had issued a notification</a> to address the procedure, terms, and conditions for the grant of licenses for electricity trading. In its order, the CERC said that for short-term contracts and contracts through power exchanges, the trading licensee should charge a minimum trading margin of ₹0 per kWh and a maximum trading margin of ₹0.07 ($0.00099)/kWh.
Last month, the CERC <a href="https://mercomindia.com/rajasthan-discom-313-million-ntpc-trading-margin-dispute/" target="_blank" rel="noopener noreferrer">directed</a> three distribution companies in the state of Rajasthan to pay ₹313.4 million (~$4.4 million) to NTPC Vidyut Vyapar Nigam Limited (<a href="http://www.nvvn.co.in/" target="_blank" rel="noopener noreferrer">NVVN</a>) in a trading margin dispute.
Image credit: ccfarmer [CC BY <a href="https://creativecommons.org/licenses/by/3.0" target="_blank" rel="noopener noreferrer">3.0</a>]

CERC Approves Tariffs of ₹2.65/kWh and ₹3.46/kWh for 2 GW of Wind Projects

The Solar Energy Corporation of India (<a href="http://www.seci.co.in/" target="_blank" rel="noopener noreferrer">SECI</a>) has increased the tariff ceiling for its 500 MW (phase 1) solar tender that it had floated earlier this year by ₹0.08 (~$0.001)/ kWh.
The amended tariff cap is ₹2.93 (~$0.04)/kWh against the previous tariff of ₹2.85 (~$0.041)/ kWh for 25 years.
In April 2019, SECI had <a href="https://mercomindia.com/seci-tender-500-mw-solar-projects-tamil-nadu/" target="_blank" rel="noopener noreferrer">issued</a> an RfS for 500 MW of grid-connected solar PV projects in Tamil Nadu on Build Own Operate (B-O-O) basis. Later, it had <a href="https://mercomindia.com/seci-extends-bid-deadline-500-mw-solar/" target="_blank" rel="noopener noreferrer">extended</a> the bid submission date from May 27, 2019, to June 27, 2019. The extension was announced due to a tepid response from the developers.
Tamil Nadu Generation and Distribution Corporation Limited (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>) will be the power procurer for these grid-connected solar projects.
Adding to the earlier tender, which stated that the projects were to be set up only in the state of Tamil Nadu, the amendment now says that the projects are to be connected to the CTU (central transmission utility) substations and will be allocated in multiples of 10 MW with minimum project capacity being 50 MW. For state transmission utility substations, the projects will be awarded in multiples of 10 MW with minimum project capacity, also at 10 MW.
Adding to the clause of connecting the commissioned projects to the grid, it is clarified that since the projects are to be located within Tamil Nadu, the state government will provide the necessary support to facilitate the connectivity of the project to the substation.
If the tender is undersubscribed, 80% of the bid capacity could be awarded. The amendment has added detail that in such a case, the total would be rounded off to the next higher multiple of 10.
The latest amendment states that the successful bidders will have to pay ₹100,000 (~$1,416)/ MW/project along with 18% GST towards administrative overheads to SECI. It also mentions that the selected developers will have to furnish a payment security deposit of ₹500,000 ($7,080)/MW/project. This fund will be a part of the Payment Security Fund maintained by SECI for the projects.
Referring to the partial capacity that would be allotted to the last bidder, the new amendment adds that the last selected bidder after the close of the auction will be eligible for award of a partial capacity, if the bidder agrees to match the lowest (L1) tariff discovered in the auction to win the entire quoted project capacity at the L1 tariff. The last bidder has to inform SECI about this within three working days from date of completion of the auction.
In May 2019, the Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>), the state DISCOM, handed over the responsibility of managing solar and wind tenders to SECI.
Image credit: Axium Solar

SECI Raises Tariff Cap for 500 MW Solar Tender to ₹2.93/kWh

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					</table><a href="http://tbeaindia.com/" target="_blank" rel="noopener noreferrer">TBEA</a>, a Chinese manufacturer of power transformers and other electrical equipment, has bagged 300 MW of solar projects in the 1.2 GW auction conducted by the National Thermal Power Corporation (NTPC).
A TBEA spokesperson told Mercom that while bidding for the project, TBEA offered a tariff rate of ₹2.63 (~$0.037)/ kWh for 300 MW of solar projects while SB Energy quoted the tariff of ₹2.65 (~$0.037)/ kWh.
With this win, TBEA ventures, known for supplying solar inverters, has set out as a solar independent power producer (IPP) in the Indian renewable energy market.
In August 2019, Mercom had <a href="https://mercomindia.com/ntpc-tender-solar-across-india/" target="_blank" rel="noopener noreferrer">reported</a> that the NTPC had issued a tender to set up 1.2 GW of the interstate transmission system (ISTS)-connected solar projects.
The technical bids for the tender were opened on September 30, 2019. Out of the 1.2 GW, bids were received only for 600 MW. TBEA and SB energy bid for 300 MW of solar projects each.
<a href="https://mercomindia.com/wp-content/uploads/2019/10/NTPC-1.2-GW-ISTS-Solar-Projects.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-16079" src="https://mercomindia.com/wp-content/uploads/2019/10/NTPC-1.2-GW-ISTS-Solar-Projects.png" alt="NTPC 1.2 GW ISTS Solar Projects" width="408" height="159" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/10/NTPC-1.2-GW-ISTS-Solar-Projects.png 408w, https://cms.mercomindia.com/wp-content/uploads/2019/10/NTPC-1.2-GW-ISTS-Solar-Projects-300x117.png 300w" sizes="(max-width: 408px) 100vw, 408px" /></a>
“As per the reverse auction, only one bidder could win the bid for a capacity of 300 MW of solar projects after the auction. TBEA emerged as the winner with 300 MW at the tariff rate of ₹2.63 (~$0.037)/ kWh”, said the company spokesperson.
According to the company statement, “The tariff offered by TBEA Solar, in the wake of current scenarios, seems to be competitive analyzing the previously concluded bid of Solar Energy Corporation of India (SECI) where the maximum capacity was allotted at ₹2.65 (~$0.037)/kWh and with the fact that SECI has increased the ceiling tariff to ₹2.78/kWh (~$0.039)/ kWh in its recent solar ISTS tender.”
<a href="https://mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-16080" src="https://mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018.png" alt="Lowest Solar Bids in Reverse Auctions in India - Since 2018" width="717" height="382" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018.png 717w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018-300x160.png 300w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018-650x346.png 650w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018-624x332.png 624w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Lowest-Solar-Bids-in-Reverse-Auctions-in-India-Since-2018-600x320.png 600w" sizes="(max-width: 717px) 100vw, 717px" /></a>
Previously, the lowest (L1) tariff of ₹2.59 (~$0.0372)/kWh was <a href="https://mercomindia.com/ntpc-2-gw-solar-auction-results/" target="_blank" rel="noopener noreferrer">quoted</a> in the auction held by NTPC to develop 2 GW of solar photovoltaic projects. <a href="https://www.acme.in/" target="_blank" rel="noopener noreferrer">ACME Solar</a> had quoted the lowest tariff of ₹2.59 (~$0.0372)/kWh to develop 600 MW. <a href="http://www.shapoorjipallonji.com/" target="_blank" rel="noopener noreferrer">Shapoorji Pallonji</a> and <a href="https://www.azurepower.com/" target="_blank" rel="noopener noreferrer">Azure Power</a> matched the L1 tariff to develop 500 MW and 300 MW, respectively.
Of late, the NTPC has issued numerous tenders that have not received the anticipated response from the bidders.
Recently, the NTPC had <a href="https://mercomindia.com/ntpc-extends-deadline-solar-cpsu/" target="_blank" rel="noopener noreferrer">extended</a> the bid submission deadline for 1,000 MW of solar projects under the Central Public Sector Undertaking Program Phase II, Tranche-1.
Before this, the company had to <a href="https://mercomindia.com/setting-upper-tariff-cap-ntpc-solar-tender/" target="_blank" rel="noopener noreferrer">extend</a> the bid submission deadline for its 1.2 GW solar tender in western India after an upper tariff cap set by the NTPC failed to attract bidders.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener noreferrer">India Solar Project Tracker</a>, NTPC has ~870 MW of large-scale solar projects in operation.
Image credit: juwi

TBEA Wins 300 MW of Solar Projects in the NTPC Auction at a Tariff of ₹2.63/kWh

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