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CERC Approves Tariffs for 630 MW Renewable Energy Projects

The Central Electricity Regulatory Commission (CERC) has approved the Solar Energy Corporation of India’s (SECI) petition to adopt tariffs for 630 MW of firm and dispatchable renewable energy from interstate transmission system (ISTS)-connected projects. The approved tariffs range between Rs 4.98/kWh.

Background & Bidding Process

In June 2023, SECI invited bids for 1,260 MW of firm and dispatchable renewable energy with storage. However, in 2024, the capacity was reduced to 630 MW. After the e-reverse auction, SECI awarded letters of award (LOAs) to selected bidders at the finalized tariff range.

SECI approached CERC to approve these tariffs and sought a trading margin of Rs0.07/kWh from distribution companies (DISCOMs). However, some DISCOMs, including BSES Rajdhani Power and BSES Yamuna Power, did not execute power supply agreements (PSAs). As a result, SECI reallocated 625 MW of the awarded capacity to other utilities.

Commission’s Analysis & Decision

CERC found that SECI’s bidding and tariff discovery process was transparent, competitive, and aligned with established guidelines. It concluded that the discovered tariffs were reasonable and officially adopted them. SECI was instructed to submit copies of executed power purchase agreements (PPAs) and PSAs.

Additionally, CERC ruled that SECI must set trading margins as per the PSAs. If SECI fails to provide financial security mechanisms like an escrow arrangement or a revolving letter of credit for wind-solar hybrid power generators, the trading margin will be capped at Rs0.02/kWh.