CERC Approves Tariff for SECI’s 1.2 GW Hybrid Projects

The Central Electricity Regulatory Commission (CERC) has adopted the tariff for 1,200 MW of Wind-Solar Hybrid Power Projects with Assured Peak Power Supply (Tranche VI) under the competitive bidding process conducted by the Solar Energy Corporation of India Ltd. (SECI).

It may be noted that SECI had filed a petition before CERC under Section 63 of the Electricity Act, seeking approval of the discovered tariff.

The Request for Selection (RfS) for these projects was issued on November 2, 2022, in line with the Ministry of New and Renewable Energy (MNRE) guidelines. SECI received eight bids totaling 2,390 MW, of which seven bidders qualified for the e-reverse auction held on April 12, 2023. Following the bidding process, SECI awarded Letters of Award (LOAs) on April 20, 2023, to four successful bidders.

The lowest tariff of INR 4.64/kWh was secured by AMP Energy Green Private Ltd. for 100 MW, while ACME Cleantech Solutions Private Limited quoted the highest tariff at INR 4.73/kWh for 380 MW. ReNew Vikram Shakti Private Ltd. and Hero Solar Energy Private Limited secured 600 MW and 120 MW, respectively, at tariffs of INR 4.69/kWh and INR 4.72/kWh.

SECI has signed Power Sale Agreements (PSAs) for 600 MW out of the total 1,200 MW capacity, including 100 MW with Assam Power Distribution Company Ltd. (APDCL) and 500 MW with Chhattisgarh State Power Distribution Company Ltd. (CSPDCL), while the remaining 600 MW capacity is yet to be contracted.

In its order dated February 24, 2025, CERC approved the tariff for the projects, confirming that the bidding process adhered to MNRE’s competitive bidding guidelines. CERC also approved a trading margin of INR 0.07/kWh, subject to SECI ensuring compliance with payment security mechanisms and other conditions.

As stated above, SECI has filed a petition with CERC seeking approval for tariffs discovered through competitive bidding for 1,200 MW ISTS-connected Wind-Solar Hybrid Power Projects (Tranche VI). The respondents include successful bidders (AMP Energy Green, ReNew Vikram Shakti, Hero Solar Energy, and ACME Cleantech Solutions) and power distribution companies (APDCL, CSPDCL). SECI requests CERC to adopt the tariff, approve a INR 0.07/kWh trading margin, and issue necessary orders. Lawyers from SECI and CSPDCL were present at the hearing.

SECI submitted details to CERC regarding the 1,200 MW Wind-Solar Hybrid Power Projects, highlighting a transparent bidding process where seven bidders qualified, and four were awarded contracts. Power Sale Agreements (PSAs) were signed with APDCL (100 MW) and CSPDCL (500 MW), while Power Purchase Agreements (PPAs) were finalized with four developers. SECI emphasized the competitive tariffs and sought CERC’s approval for tariff adoption and a INR 0.07/kWh trading margin.

During the October 10, 2024, hearing, CERC issued notices for responses, and SECI later filed an updated affidavit on November 2, 2024, confirming a 300 MW PPA with Renew Vyoman Power.

The adoption of the tariff by CERC is a crucial legal requirement under the Electricity Act and the associated Power Purchase Agreements, providing regulatory certainty to the bidding process.