CERC Adopts Tariff For 600 MW Unsold Energy From SECI

In a welcome development for SECI (Solar Energy Corporation of India) and related stakeholders, the Central Electricity Regulatory Commission (CERC) agreed to adopt the tariff for the full tranche of 900 MW of capacity, even as SECI has tied up for PPAs and PSAs for just 300 MW at the time of the order. The CERC bench accepted the full capacity in the interest of speeding up the final process for SECI.

The projects in question comprise 900 MW Solar PV Power Projects (Tranche – XI) connected with the Inter-State Transmission System (ISTS) and selected through competitive bidding process as per the Guidelines issued by the Government of India.

SECI, had issued the Request for Selection (‘RfS’) along with the draft Power Purchase Agreement (‘PPA’) and draft Power Supply Agreement (‘PSA’) for the selection of the 2000 MW ISTS-connected Solar Power Projects (Tranche XI)  on 31.3.2023. In response, fourteen (14) bids were received, offering an aggregate capacity of 5050 MW and all were found to fully meet the technical criteria. As per the eligibility criteria mentioned in the RfS, ten (10) bidders were shortlisted for participating in the e-reverse auction. The e-reverse auction was conducted on 21.7.2023 on the ISN ETS e-bidding portal, and subsequently, six bidders offering an aggregate capacity of 2000 MW were selected and issued Letters of Award on 28.7.2023.

SECI had earlier filed a Petition before the Commission for the adoption of 600 MW Solar Power Projects in respect of PPA with project companies of SAEL Industries Limited and corresponding arrangement under PSA with GUVNL. Subsequently, SECI had filed a Petition before the Commission for the adoption of 500 MW Solar Power Projects in respect of PPA with project company of Shiva Corporation India Limited (100MW), Jakson Limited (100 MW) and ReNew Solar Power Private Limited (300 MW), and corresponding arrangement
under PSA with Uttar Pradesh Power Corporation Limited (UPPCL).

The Commission, vide order dated 13.5.2024 adopted the tariff for 500 MW Solar Power Projects tied up to supply power to UPPCL. For the balance capacity, the Commission granted liberty to SECI to approach the Commission for the adoption of tariff once such capacity is tied up and the PPAs and the PSAs for such capacity are executed. SECI accordingly submitted that as on the date of filing of the present Petition, SECI has signed PSA for 200 MW capacity with New Delhi Municipal Council (NDMC), where the developer is Avaada Energy.. Buyers for 50 MW each from Jakson Limited and ReNew were also found in AEML and AEML SEEPZ limited in Mumbai. Leaving a balance 600 MW to be sold.

The CERC bench noted that given the emphasis on expeditious tariff adoption in recent times, the Commission has adopted the tariff without waiting for the tying up of the entire awarded capacity under the PPAs and PSAs.  It also accepted SECI’s plea for a trading margin of 7 paise per unit with the usual caveats.