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CERC Approves Rs2.59-Rs2.6/kWh Tariff for NTPC's 1,500 MW ISTS-Connected Solar Projects

The Central Electricity Regulatory Commission (CERC) has approved a tariff of Rs2.59/kWh for NTPC’s 1,500 MW interstate transmission system (ISTS)-connected solar projects, along with a trading margin of Rs0.07/kWh.

NTPC had issued a request for selection (RfS) in 2023, receiving seven bids totaling 3,200 MW, all meeting the techno-commercial criteria. Following an e-reverse auction, 1,500 MW was awarded, with discovered tariffs of Rs2.59 and Rs2.6/kWh. NTPC then approached CERC for tariff approval and trading margin adoption.

During the hearings, a respondent questioned the status of power sale agreements (PSAs), to which NTPC argued that tariff adoption was independent of PSA execution. It highlighted that tariff approval would facilitate timely project execution as per the Ministry of Power’s 2023 solar guidelines. In September 2024, NTPC submitted a conformity certificate, confirming that the discovered tariff was reasonable and consistent with tender requirements.

CERC found NTPC’s tariff discovery process transparent and aligned with the Ministry of Power’s solar guidelines, approving both the tariff and the trading margin, subject to mutual agreement by distribution licensees.