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CERC Upholds Rs7.87/kWh Tariff for NTPC Green’s 50 MW Rajgarh Solar Project

The Central Electricity Regulatory Commission (CERC) has determined a generic tariff of Rs7.87/kWh for NTPC Green Energy’s 50 MW Rajgarh solar project. The decision comes after a prolonged dispute over which financial year’s tariff should apply.

NTPC Green had argued for higher tariffs based on phased commissioning—Rs9.35/kWh for 30 MW commissioned in 2013-14 and Rs7.87/kWh for the remaining 20 MW commissioned in 2014-15. However, Madhya Pradesh Power Management Company (MPPMCL) insisted that since the full project was completed in 2014-15, it should be subject to that year’s lower tariff of Rs6.95/kWh.

CERC ruled that the entire project should be considered operational in 2014-15 as per the power purchase agreement (PPA). However, in a balancing act, the Commission applied the higher tariff from 2013-14 instead of the lower 2014-15 rate. This decision was based on the fact that 60% of the project was commissioned earlier, and Regulation 8 of the Renewable Energy Tariff Regulations did not explicitly address such cases.

MPPMCL had also withheld Rs21.75 crore in payments due to the tariff dispute. With the new ruling, CERC has ordered MPPMCL to release the withheld amount along with carrying costs.

By maintaining a fair tariff, CERC ensures investor confidence while reinforcing the need for clarity in tariff regulations. This ruling highlights the importance of commissioning timelines and regulatory compliance in renewable energy projects.