SECI Gets CERC Approval to Sell 600 MW Solar Power to Haryana & Bihar at Rs 2.44/kWh

CERC has approved the petition filed by SECI seeking approval for selling of 600 MW solar power to Discoms in Haryana and Bihar at a tariff rate of Rs 2.44/kWh

The Central Electricity Regulatory Commission (CERC) has in its latest order approved the petition filed by the Solar Energy Corporation of India (SECI) seeking the commissions’ approval for selling of 600 MW solar power to Discoms in Haryana and Bihar at a tariff rate of Rs 2.44/kWh.

SECI had submitted to the commission that in February 2018, it had issued the request for selection (RfS) to set up 3,000 MW of ISTS-connected solar power projects (Tranche II) in India. And that the reverse auction for the tender with the eleven technically qualified bidders was conducted on July 13, 2018. In which, ACME Solar was declared the successful bidder with a total project capacity of 600 MW awarded at the tariff of Rs 2.44/kWh. The respective letters of award (LOA) were then issued to the firms’ special purpose vehicles (SPVs), ACME Deoghar Power Private Limited, and ACME ACME Dhaulpur Private Limited for 300 MW capacity each.

Further, the agency had submitted that based on the request of the Discoms, 400 MW capacity was allocated to Haryana Power Purchase Center (HPPC), and 150 MW of solar power was allocated to North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) with the remaining 50 MW capacity allocated to the electricity department, the government of Puducherry. Subsequently, SECI had entered the PSAs with the Haryana and Bihar Discoms.

In its findings, the commission noted that “in the light of the discussions as above, it emerges that selection of the successful bidder and the tariff of the Projects has been carried out by SECI through a transparent process of competitive bidding in accordance with Guidelines issued by Ministry of Power. And thus, “the Commission adopts the following tariff (Rs 2.44/kWh) for the Projects as agreed to by the successful bidder, which shall remain valid throughout the period covered in the PSAs and PPAs.”

Regarding the trading margin, which was agreed at Rs 0.07/kWh, the Commission asked the contracting parties to agree on it mutually. Further, the Commission asked SECI to inform the Commission before initiating the bidding process in the future, which SECI failed to do in this case.

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