CERC Approves Trading Margin of Rs.0.07/kWh in SECI’s PSAs with Distribution Firms

CERC Approves Trading Margin of Rs.0.07/kWh in SECI's PSAs with Distribution Firms

The Solar Energy Corporation of India (SECI), in its petition, had asked the CERC for the approval of the trading margin of Rs.0.07/kWh agreed to by the distribution companies (Brihanmumbai Electric Supply and Transport; Tripura State Electricity Corporation) in the Power Supply Agreements signed for capacities of 334 MW and 100 MW respectively.

The CERC has allowed the trading margin of Rs.0.07/kWh as agreed in the PSAs by the distribution licensees. However, it notes, “In case of failure by SECI to provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit to the solar generators, the trading margin shall be limited to Rs.0.02/kWh.”

In the same petition, the CERC declined to give relief to Adani Green on ‘Change of Law’ events on procedural issues. It came after Adani Green, who was a respondent in a petition filed by the Solar Energy Corporation of India (SECI). The Petition was related to the adoption of tariffs. 

CERC Denies Granting ‘Change Of Law’ Benefits To Adani Green

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The petition was originally filed by the SECI seeking the adoption of a tariff for 334 MW of ISTS-connected solar projects. Adani Green and Azure Power were the main bid winners for those projects. As per the agreement, the two solar power producers were set to supply solar power at Rs 2.54/unit to Brihanmumbai Electricity Supply and Transport (BEST) and Tripura State Electricity Corporation.

Needless to say, the imposition of increased GST rated and Basic Customs Duty on the imports of inverters and solar trackers has only added to the woes of developers, bringing up project costs.