| Work Detail |
The Central Electricity Regulatory Commission (CERC) issued an order on January 31, 2025, regarding the adoption of tariffs for a 450 MW solar power project under Tranche XVI. The petition was filed by the Solar Energy Corporation of India (SECI) under Section 63 of the Electricity Act, 2003, to approve the tariff for the selected projects. These projects are connected to the Inter-State Transmission System (ISTS) and were chosen through a competitive bidding process as per the guidelines issued by the Ministry of Power. SECI initiated the bidding process on May 29, 2024, by issuing a Request for Selection (RfS) for setting up a 1200 MW ISTS-connected solar PV power project. However, on July 4, 2024, SECI amended the RfS and reduced the project capacity to 500 MW. Five bids were received for a total of 940 MW, and all met the technical and commercial requirements. On August 12, 2024, the financial bids were opened, followed by an e-reverse auction. The final tariff was discovered, and on August 20, 2024, SECI issued Letters of Award (LoAs) to SAEL Industries Limited for 250 MW and NTPC Renewable Energy Limited for 200 MW, totaling 450 MW. During the hearings, SECI confirmed that the bidding process followed a transparent and competitive procedure as per the government’s solar guidelines. The commission noted that SAEL Industries formed a special purpose vehicle (SAEL Solar P12 Private Limited) to execute the Power Purchase Agreement (PPA) for its 250 MW allocation. SECI requested CERC to adopt the discovered tariff and approve a trading margin of ?0.07 per kWh to be paid by distribution companies. The commission examined the bidding process and confirmed that it adhered to the guidelines, ensuring fairness and transparency. The guidelines specify that solar power projects must be procured through a competitive bidding process, with a maximum of 50% of the total capacity allocated to a single bidder. The discovered tariff was ?2.48 per kWh for both SAEL Industries and NTPC Renewable Energy. CERC reviewed SECI’s conformity certificates, which verified that the entire process, including bid evaluation and financial analysis, followed the prescribed guidelines. The commission also considered the trading margin requested by SECI. According to the Trading Licence Regulations, trading margins for long-term contracts should be mutually agreed upon by the contracting parties. However, if SECI fails to provide an escrow arrangement or an irrevocable, unconditional letter of credit to the solar generators, the trading margin will be limited to ?0.02 per kWh. After analyzing all aspects, CERC approved the adoption of the discovered tariff for the 450 MW capacity, allowing SECI to proceed with its power procurement and PPA agreements. The commission also instructed SECI to submit copies of the final PPAs and Power Sale Agreements (PSAs) once they are signed. If the awarded capacity is not finalized under these agreements, SECI must inform the commission accordingly. |
