CERC Approves Tariff For 1200 MW Wind-Solar Hybrid Power Project At ₹4.64–₹4.73/kWh

Posted On - 13 March, 2025 • By - King Stubb & Kasiva

Summary

The Central Electricity Regulatory Commission (CERC) approved tariffs ranging from ₹4.64/kWh to ₹4.73/kWh for 1200 MW of ISTS-connected Wind-Solar Hybrid Power Projects with assured peak power supply (Tranche-VI). The tariff was discovered through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI) under Ministry of New and Renewable Energy (MNRE) guidelines. The order, dated 24th February 2025, mandates SECI to tie up the remaining 600 MW capacity under Power Purchase Agreements (PPAs) and Power Supply Agreements (PSAs) post-adoption. A trading margin of ₹0.07/kWh for tied-up capacities was also approved, contingent on compliance with payment security mechanisms.

Case Timeline

  • 02.11.2022: SECI issues Request for Selection (RfS) for 1200 MW hybrid projects.
  • 12.04.2023: E-reverse auction conducted; four bidders selected.
  • 20.04.2023: Letters of Award (LoAs) issued to successful bidders.
  • 10.10.2024 & 12.11.2024: Hearings held; respondents failed to file replies.
  • 24.02.2025: CERC approves tariff and disposes the petition.

Issue Raised

Whether the tariff discovered through SECI’s competitive bidding process for 1200 MW wind-solar hybrid projects complies with Section 63 of the Electricity Act, 2003, requiring adoption of tariffs determined via transparent bidding in line with MNRE guidelines.

Appellant’s Arguments (SECI)

  1. Transparent Process: Conducted e-reverse auction per MNRE guidelines (14.10.2020), receiving eight bids (2390 MW) and shortlisting seven.
  2. Capacity Tie-Up: Signed PPAs for 600 MW (e.g., 100 MW with Assam Discom, 500 MW with Chhattisgarh Discom) and PSAs with developers like ACME and ReNew.
  3. Tariff Justification: Discovered tariffs (₹4.64–₹4.73/kWh) deemed competitive and beneficial for consumers.
  4. Trading Margin: Requested ₹0.07/kWh margin, agreed by Discoms in PSAs.

Respondents’ Arguments

  • No Opposition: None of the 10 respondents filed replies despite multiple opportunities.

Order

  1. Tariff Adoption: Approved for 1200 MW under Section 63, with tariffs as follows:
BidderCapacity (MW)Tariff (₹/kWh)
AMP Energy1004.64
ReNew6004.69
Hero Solar1204.72
ACME3804.73
  1. Conditions: SECI must tie up remaining 600 MW under PPAs/PSAs and submit proof.
  2. Trading Margin: Approved ₹0.07/kWh, subject to compliance with Trading Licence Regulations, 2020 (e.g., revolving LC or escrow for payment security).

Analysis

Regulatory Compliance: CERC validated SECI’s adherence to MNRE guidelines, emphasizing transparency in bid evaluation and e-reverse auction.

  1. Hybrid Projects: The inclusion of energy storage (100 MWh/100 MW) ensures assured peak-hour supply, addressing grid stability and renewable integration challenges.
  2. Conditional Approval: By approving tariffs upfront for untied capacity, CERC balances project viability with accountability, ensuring SECI finalizes agreements promptly.
  3. Payment Security: The order reinforces safeguards (e.g., LC mechanisms) to protect generators, aligning with Regulation 9(10) of Trading Licence Regulations.
  4. Market Signal: Low tariffs (₹4.64–₹4.73/kWh) reflect competitive bidding success, encouraging cost-efficient renewable adoption while meeting RPO targets.

Conclusion

The order accelerates India’s renewable energy transition by streamlining tariff adoption for hybrid projects, ensuring compliance, and balancing stakeholder interests.

https://www.cercind.gov.in/2025/orders/311-AT-2024.pdf