CERC Approves Tariff of Rs 2.79/kWh for 480 MW Wind Power

CERC has approved the petition filed by SECI for the adoption of tariff for 480 MW wind power projects (Tranche-VII) through a competitive bidding process.

The Central Electricity Regulatory Commission (CERC) has in its latest order approved the petition filed by the Solar Energy Corporation of India (SECI) for the adoption of tariff for 480 MW wind power projects (Tranche-VII) through a competitive bidding process.

SECI in its petition had made the following prayer to the commission: Adopt the tariff discovered in the competitive bid process for the individual power projects plus the trading margin of Rs.0.07/kWh to be recovered from the Buying Utilities/ Distribution Licensees on the terms and conditions contained in the PPAs.

SECI had submitted that it issued Request for Selection (RfS) along with draft Power Purchase Agreement (PPA) and Power Sale Agreement (PSA) documents for setting up of 1200 MW ISTS connected Wind Power Projects (Tranche-VII) as per “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects” and floated the same on February 22, 2019.

The Petitioner has submitted that e-Reverse auction of the four technically qualified bidders (Betam Wind Energy, Ostro Energy, Sprng Vaayu Urja, Adani Renewables Energy Park (Gujarat)) was conducted on May 14, 2020, on TCIL’s portal and the final tariff was arrived. The Petitioner has submitted that the Wind Power Projects are scheduled to be commissioned in the year 2020-21 and the Projects would help the Buying Utilities/Distribution Licensees in meeting their Renewable Purchase Obligations (RPOs) requirements apart from providing power at very economical rates.

SECI had further submitted that it has agreed to sell the entire 480 MW (i.e. cumulative awarded capacity/accepted cumulative capacity) of wind power to the Buying Utilities/Distribution Licensees at the rate of Rs. 2.8091/kWh plus the trading margin of Rs.0.07/kWh upon the commissioning of the above capacity. According to the Petitioner, since the pooled tariff discovered through the competitive bid process is even lesser than the procurement cost of conventional power, it would be beneficial for the Buying Utilities/Distribution Licensees and the consumers at large.

Further, based on the request of the Buying Utilities/Distribution Licensees, SECI had entered into PSAs for 100 MW capacity with Kerala State Electricity Board (KSEB) and 380 MW power with Uttar Pradesh Power Corporation Limited (UPPCL).

Based on findings, the commission stated that In the light of the above discussion, in terms of Section 63 of the Act, the Commission adopts the following tariff for the Projects as agreed to by the successful bidders subject to signing of the PPAs with WPDs, which shall remain valid throughout the period covered in the PSAs and PPAs.

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