| Work Detail |
SJVN Limited filed a petition before the Central Electricity Regulatory Commission (CERC) under Section 63 of the Electricity Act, 2003, seeking approval for the adoption of tariffs discovered through a competitive bidding process. The project involved setting up 1,200 MW of Inter-State Transmission System (ISTS) connected Solar PV Power Projects, known as Solar-2. The bidding followed the guidelines issued by the Ministry of Power on July 28, 2023. SJVN acted as the intermediary procurer and floated a Request for Selection (RfS) on April 30, 2024. In response, twelve bids were received, totaling a capacity of 3,990 MW. After evaluation, five bidders were declared successful, with letters of award issued on August 9, 2024. The successful bidders included ACME Solar Holdings Limited, Essar Renewables Limited, SAEL Industries Limited, NTPC Renewable Energy Limited, and Onward Solar Private Limited. The tariffs discovered were ?2.52/kWh for most bidders and ?2.53/kWh for NTPC Renewable Energy Limited. The awarded capacity was allocated as follows: 300 MW each to ACME, Essar, and SAEL, 200 MW to NTPC, and 100 MW to Onward Solar. The procurement process included issuing draft Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs), with SJVN set to sign these agreements with both developers and distribution licensees. The hearing process took place on several dates. During the hearings, it was confirmed that at least one respondent, SAEL Industries Limited, had no objections. Other respondents did not make submissions. The CERC noted that SJVN had followed a transparent and competitive process in line with the guidelines. However, the Commission expressed dissatisfaction with SJVN for not submitting the required conformity certificate from the Evaluation Committee. They directed SJVN to ensure compliance with such provisions in the future. The Commission emphasized the importance of tying up the awarded capacity under PPAs and PSAs. However, given the emphasis on expediting tariff adoption under the guidelines, the CERC proceeded to adopt the tariffs without waiting for the entire capacity to be tied up. The order allowed SJVN to move forward while requiring it to report back once agreements were finalized. The petition also included a request for approval of a trading margin of ?0.07/kWh to be paid by the distribution companies or buying entities, as per the guidelines. The CERC clarified that trading margins would be subject to mutual agreement between parties. If SJVN failed to provide an escrow arrangement or irrevocable letter of credit, the trading margin would be limited to ?0.02/kWh under the Trading Licence Regulations. The Commission also referred to the implementation of the Uniform Renewable Energy Tariff (URET), which standardizes tariffs for renewable energy projects under a central pool managed by Grid India. The procedure ensures a fair and uniform approach to selling renewable energy across different states and procurers. The Commission adopted the tariffs discovered through the competitive bidding process for the 1200 MW ISTS-connected Solar PV Projects and directed SJVN to finalize the PPAs and PSAs. The petition was disposed of accordingly. |
