NTPC had issued a tender for the development of 1,500 MW ISTS-connected wind-solar hybrid power projects. The tender received bids totalling 3,150 MW from seven bidders, out of which six met the techno-commercial criteria. Following an e-reverse auction, four bidders were selected. ABC Cleantech secured 750 MW at a tariff of Rs 3.27)/kWh, Juniper Green Energy was awarded 300 MW at Rs 3.29)/kWh, Acme Cleantech Solutions obtained 150 MW at Rs 3.22/kWh, and Renew Solar Power was allocated 300 MW at Rs 3.32/kWh.

NTPC issued letters of award to the selected bidders, instructing them to sign power purchase agreements (PPAs) within 90 days. It then petitioned CERC to approve the discovered tariffs and submitted that the PPAs and PSAs were signed for a period of 25 years. A conformity certificate was provided, confirming that the bidding process was conducted transparently through an international competitive bidding mechanism. NTPC also sought approval for a trading margin of Rs 0.07/kWh.

The Commission noted that NTPC approached it 42 days after the e-reverse auction instead of the stipulated 15 days. NTPC attributed the delay to procedural requirements in filing the petition. Despite this, CERC approved the discovered tariffs, acknowledging that the competitive bidding process was followed and that the outcome would be beneficial for procurers and consumers. The Commission also instructed NTPC to report any delays in commissioning the awarded capacity.

Since the awarded capacity is yet to be tied to distribution licensees, the trading margin will be determined as per the PSAs. NTPC is also required to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the bidders. Failure to do so would result in the trading margin being reduced to Rs 0.02/kWh.

In line with new hybrid power guidelines, CERC approved tariffs for the awarded capacity not yet tied up in PPAs and PSAs. In a separate instance in February, CERC had approved tariffs between Rs 4.64/kWh and Rs 5.25/kWh for 1,530 MW of renewable energy procured by NTPC through a competitive bidding process.

News source: Mercom India