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Central Regulator Approves Tariffs for SJVN’s 600 MW ISTS Wind Power Projects

The Central Electricity Regulatory Commission (CERC) has approved tariffs of Rs3.98/kWh for SJVN’s 600 MW interstate transmission system (ISTS)-connected wind power projects. The Commission also sanctioned the trading margin per the Power Sale Agreements (PSA).

SJVN had issued a tender for developing 600 MW ISTS-connected wind projects under a build-own-operate (BOO) model. The auction attracted three bids totaling 220 MW, with two bidders qualifying for the e-reverse auction. Letters of award were issued for 170 MW as follows:

• Adyant Enersol: 70 MW at Rs3.98/kWh
• UPC Renewables India Management: 100 MW at Ra3.99/kWh

SJVN sought CERC’s approval for these discovered tariffs and a trading margin of Rs0.07/kWh. CERC approved the tariffs, noting that the selection process was conducted through a transparent competitive bidding mechanism in line with the Ministry of Power’s Wind Guidelines. The Commission also approved the full 600 MW capacity, even though SJVN has currently tied up only 170 MW under Power Purchase Agreements (PPA).

Key Directives from CERC

• Tariff approval covers the entire 600 MW, and SJVN must update CERC when the remaining capacity is tied up under PPAs and PSAs.
• Trading Margin Conditions:
  • If an escrow arrangement with an irrevocable, unconditional, and revolving letter of credit is provided, the trading margin remains per the PSA.
  • If no such financial security is provided, the trading margin will be capped at Rs0.02/kWh.