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CERC Approves Tariffs of Rs 2.52/kWh for SJVN’s 1,200 MW ISTS-Connected Solar Projects

The Central Electricity Regulatory Commission (CERC) has approved tariffs of Rs 2.52/kWh for SJVN’s 1,200 MW interstate transmission system (ISTS)-connected solar projects. However, the commission ruled that the trading margin would be determined based on the Power Sale Agreements (PSAs) with distribution licensees, as the full capacity is not yet tied up.

Regulatory Concerns & Compliance Issues

• CERC reprimanded SJVN for not publishing the RfS in two national newspapers, as mandated by Ministry of Power guidelines.
• SJVN had published the tender on the e-Tender portal and government websites but later issued a newspaper notification after the fact.
• CERC found the bidding process transparent despite the publication non-compliance.

Final CERC Ruling

• Tariff Approval: Approved the discovered tariffs for the full 1,200 MW capacity, even though it is not fully tied up.
• Trading Margin: To be determined as per PSAs. If SJVN does not provide an escrow arrangement or an irrevocable letter of credit, the margin will be capped at Rs 0.02/kWh instead of the requested Rs 0.07/kWh.
• Future Compliance: Directed SJVN to adhere to proper publication norms in future tenders and update CERC when the remaining awarded capacity is tied up under PPAs/PSAs.

This decision supports competitive solar tariff adoption while ensuring regulatory compliance in large-scale renewable auctions.