The Central Regulatory Commission (CERC) has approved the Solar Energy Corporation of India’s (SECI) petition to adopt a tariff of ₹2.6 (~$0.03) for 900 MW interstate transmission system (ISTS)-connected solar power projects (Tranche- XI). This tariff will be applicable for individual power projects with a balance capacity of 900 MW after tying up only 300 MW capacity under power purchase agreements (PPAs). The Commission also approved a trading margin of ₹0.07 (~$0.0008)/kWh.
SECI had invited bids to select developers for 2,000 MW ISTS-connected solar projects, and after the auction, six bidders offering a capacity of 2,000 MW were selected and issued a letter of award. CERC had previously adopted tariffs for 600 MW and 500 MW capacities in two different orders, and SECI approached the Commission seeking tariff adoption for the balance capacity of 900 MW.
CERC observed that SECI selected the successful bidders and discovered the project tariff through a transparent and competitive bidding process, following established guidelines. The Commission noted the recent emphasis on expeditious tariff adoption and adopted the ₹2.6 (~$0.03) tariff for the balance 600 MW capacity without waiting for the tie-up of the complete capacity. The Commission also directed limiting the trading margin to ₹0.02 (~$0.00023)/kWh if SECI does not provide an escrow arrangement or irrevocable, unconditional, and revolving letter of credit to the solar generators.
This development is significant as it will help to accelerate the development of solar power projects in India. The approved tariff and trading margin will provide a clear framework for developers to proceed with their projects, and the Commission’s decision to adopt the tariff for the balance capacity without waiting for the tie-up of the complete capacity will help to expedite the process.