The Central Electricity Regulatory Commission (CERC) has approved tariffs between Rs 3.43 and Rs 3.46 per kWh for Solar Energy Corporation of India's (SECI) 1,200 MW wind-solar hybrid power projects (Tranche-VIII). These tariffs were determined through a competitive bidding process conducted by SECI. 

CERC has directed SECI to finalise the power purchase agreements (PPAs) and power sale agreements (PSAs) to ensure the projects' timely execution. 

Background 

SECI had petitioned CERC for tariff adoption and approval of a trading margin of Rs 0.07/kWh for these hybrid projects. The bidding process began on February 20, 2024, with an e-reverse auction for ISTS-connected projects. Out of eight participants offering 2,160 MW, six bidders—Juniper Green Energy, Avaada Energy, Adyant Enersol, AMPIN Energy Utility, Asurari Renewables India Project, and JSW Neo Energy—were awarded contracts totaling 1,200 MW on June 20, 2024. 

Regulatory findings 

CERC determined that SECI's auction process was transparent, competitive, and in line with the Ministry of Power’s guidelines. The commission confirmed that the discovered tariffs were market-aligned, ensuring affordability for consumers while maintaining financial viability for developers. 

SECI’s proposed trading margin of Rs 0.07/kWh was approved, but with conditions. If SECI fails to provide adequate financial security measures—such as an escrow arrangement or an irrevocable letter of credit—the margin will be capped at Rs 0.02/kWh. 

Project execution 

SECI must submit copies of executed PPAs and PSAs once all awarded capacity is fully allocated. If agreements are delayed, SECI must report the reasons to CERC. Developers are required to achieve financial closure six months before the scheduled supply date and complete commissioning within 24 months of PPA signing, with penalties applicable for delays. 

Recently, CERC also approved SECI’s petition to adopt a tariff of Rs 2.6/kWh for 900 MW of ISTS-connected solar power projects (Tranche-XI). 

(Mercom)