CERC Approves Tariffs for 1.2 GW Wind Solar Projects by NTPC

The Central Electricity Regulatory Commission (CERC) has approved the tariffs discovered through competitive bidding for 1,200 MW of Inter-State Transmission System (ISTS)-connected wind-solar hybrid power projects.

The petition, filed by NTPC Limited under Section 63 of the Electricity Act, 2003, marks another major step in India’s clean energy push.

Bidding Process and Tariff Discovery

NTPC initiated the bidding process on 30 June 2024, adhering to the Ministry of Power’s guidelines issued on 21 August 2023 for grid-connected hybrid power procurement.

Eight valid bids were received, with technical bids opened on 20 September and financial bids on 22 October. A subsequent e-reverse auction on 23 October 2024 led to the selection of four companies for a combined capacity of 1,170 MW.

These included Green Prairie Energy III Pvt. Ltd. (200 MW at INR 3.28/kWh), Adyant Enersol Pvt. Ltd. (70 MW at INR 3.28/kWh), Sembcorp Green Infra Pvt. Ltd. (300 MW at INR 3.29/kWh), and Adani Renewable Energy Holding Twelve Ltd. (600 MW at INR 3.29/kWh). Letters of Award (LoAs) were issued to the winners on 25 November 2024.

Project Structure and Timeline

The selected projects are to be developed anywhere in India and must include both solar and wind components. For instance, Green Prairie’s 200 MW project will consist of 140 MW solar and 66 MW wind capacity. As per the bidding terms, each project must commence supply within 24 months from the effective date of the Power Purchase Agreement (PPA), which will remain valid for 25 years.

NTPC, acting as the intermediary procurer, will enter into back-to-back PPAs with project developers and Power Sale Agreements (PSAs) with power distribution licensees.

Regulatory Oversight and Final Order

A Standing Tender Committee constituted on 8 March 2024 oversaw the entire bidding and evaluation process for solar and wind hybrid project. The committee confirmed that the procedure was transparent and consistent with government guidelines.

In its final order issued on 19 June 2025, CERC approved the adopted tariffs but instructed NTPC to submit copies of the executed PPAs and PSAs. If these agreements are not concluded, NTPC must inform the Commission accordingly.

NTPC also sought approval to charge a trading margin of INR 0.07 per unit of electricity. However, CERC ruled that the higher margin would be allowed only if supported by either an escrow mechanism or an irrevocable, unconditional, and revolving letter of credit. In the absence of such financial safeguards, the trading margin is capped at INR 0.02/kWh, as prescribed under the CERC Trading License Regulations.

The Commission’s approval of these tariffs paves the way for over a gigawatt of new hybrid renewable capacity.

NTPC Renewable Energy Limited (NTPC REL) has recently invited bids for the supply and installation of wind turbine generators (WTGs) for an 813 MW (271 WTG) wind energy project in Bellary, Karnataka.