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CERC Approves Rs2.68/kWh Final Tariff for NTPC’s 92 MW Floating Solar Project in Kerala

The Central Electricity Regulatory Commission (CERC) has approved a final levelized tariff of Rs2.68/kWh for NTPC’s 92 MW floating solar project at the Rajiv Gandhi Combined Cycle Power Project (RGCCPP) in Kayamkulam, Kerala. This project marks a key renewable energy milestone under NTPC’s MoU with the Kerala State Electricity Board (KSEBL), originally signed on May 11, 2018, to jointly develop renewable power projects in the state.

The floating solar project was constructed in two phases — 22 MW and 70 MW — with commercial operations starting on June 24, 2022, after delays of 19 and 13 months, respectively, due to force majeure conditions. Initially, NTPC and KSEBL had agreed on a draft tariff of Rs3.16/kWh (up to 28% CUF), subject to approval by the Kerala State Electricity Regulatory Commission (KSERC) and final determination by CERC.

CERC initially set a provisional tariff of Rs2.94/kWh and, after evaluating petitions from both NTPC and KSEBL, finalized the tariff at Rs2.68/kWh — lower than both the provisional and mutually agreed tariffs. While NTPC had claimed a higher tariff of Rs3.22/kWh, CERC approved only eligible recoveries, including Rs12.81 crore in interest and Rs44.8 million in incidental expenditure during construction.

The approved capital cost stood at Rs457 crore, although the Commission denied NTPC’s claim for a 7 km motorable road, citing its non-construction. NTPC has been directed to raise bills based on the finalized tariff over the 25-year PPA term.

This tariff stands significantly lower than recent CERC-approved tariffs (Rs3.43–Rs3.46/kWh) for NTPC’s 1 GW wind-solar hybrid ISTS-connected projects, reinforcing the economic viability of floating solar.