CERC Adopts Rs. 2.63/kWh Tariff for 300 MW Solar Project

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In a recent order, the Central Electricity Regulatory Commission (CERC) has accepted NTPC Limited’s petition to adopt the tariff of Rs. 2.63/kWh and a trade margin of Rs. 0.07/kWh for a 300 MW solar project.

In 2019, NTPC (formerly National Thermal Power Corporation Limited) had issued a request for selection (RfS) for setting up 1,200 MW of ISTS grid-connected solar projects anywhere in India. In the e-reverse auction, TBEA Solar India emerged as the successful bidder for 300 MW capacity at Rs. 2.63/kWh tariff. In 2020, NTPC signed a PPA (power purchase agreement) with TBEA as well as a supplementary PPA with a special purpose vehicle (SPV) created by TBEA called ABC Renewable Energy. Additionally, NTPC signed a back-to-back PSA with the Government of Puducherry and the Madhya Pradesh Power Management Company (MPPMC) for 100 MW and 200 MW capacity, respectively.

NTPC then submitted a petition to CERC, requesting the commission to adopt a tariff for 1,200 MW of interstate transmission system (ISTS)-connected solar projects, which was discovered through a competitive bidding process. NTPC stated that it had issued the draft RfS, PPA and PSA and conducted the bidding process in accordance with the concerned guidelines.

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After due consideration of the facts, the commission accepted NTPC’s request. As a result, CERC adopted the tariff of Rs. 2.63/kWh for 300 MW capacity as “the same has been discovered through transparent competitive bidding process in terms of the Guidelines and shall remain valid throughout the period covered in the PSAs and PPA,” as well as a trade margin of Rs. 0.07/kWh to be recovered from the distribution licensees (DISCOMs) in terms of the PSA. If NTPC fails to provide a revolving letter of credit to the solar developer, added the commission, however, the trade margin will be limited to Rs. 0.02/kWh.

The commission’s full order can be accessed here.

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