Petition for Adoption of ISTS Grid connected Solar Power projects of 1200 MW with Energy storage system (ESS) with “Greenshoe Option” (NHPC Tranche -VIII) – EQ
Summary:
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## 1. **Petition Overview & Relief Sought**
NHPC filed this petition under **Section 63 of the Electricity Act, 2003** seeking:
| **Prayer** | **Details** |
|———–|————|
| **Tariff Adoption** | Adoption of tariff discovered through competitive bidding for 1200 MW ISTS-connected Solar PV projects with 600 MW / 1200 MWh ESS |
| **Greenshoe Option** | Adoption of tariff for additional **1200 MW capacity** under Greenshoe Option |
| **Trading Margin** | Approval of **₹0.07/kWh** trading margin to be recovered from DISCOMs under Power Sale Agreements (PSAs) |
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## 2. **Bidding Process Timeline & Key Events**
| **Event** | **Date** |
|———-|———|
| RfS Issued by NHPC | 20.09.2024 |
| Technical Bid Opening | 04.12.2024 |
| Price Bid Opening | 16.01.2025 |
| e-Reverse Auction | 22–23.01.2025 |
| Letters of Award (LoA) Issued | 13.03.2025 |
| CERC Order | 14.01.2026 |
– **Total Bids Received:** 14
– **Technically Qualified:** 13
– **E-RA Participants:** 12
– **Successful Bidders (Base Capacity):** 6
– **Base Capacity Awarded:** **1200 MW**
– **Discovered Tariff:** **₹3.09/kWh** (730 MW) and **₹3.10/kWh** (470 MW)
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## 3. **Successful Bidders – Base Capacity Allocation**
| **S. No** | **Bidder** | **Allocated Capacity (MW)** | **Tariff (₹/kWh)** |
|———-|———–|—————————-|——————-|
| 1 | Onix Renewable Limited | 100 | 3.09 |
| 2 | Jindal India Renewable Energy Limited | 180 | 3.09 |
| 3 | NTPC Renewable Energy Limited | 300 | 3.09 |
| 4 | Kolar Solar Power Private Limited | 150 | 3.09 |
| 5 | ReNew Solar Power Private Limited | 300 | 3.10 |
| 6 | Adani Renewable Energy Holding Nine Limited | 170 | 3.10 |
| **Total** | | **1200** | |
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## 4. **Greenshoe Option – Process & Commission’s Ruling**
### **4.1 Allocation Under Greenshoe Option (As per NHPC)**
– **Total Greenshoe Capacity Offered:** 1200 MW (at L1 tariff of ₹3.09/kWh)
– **First Round Consent:** 1020 MW accepted by 5 bidders (Jindal did not opt)
– **Second Round:** Remaining 70 MW allocated to **NTPC Renewable Energy**, taking its total to **670 MW** (300 base + 370 greenshoe)
### **4.2 CERC’s Observations & Directions**
| **Issue** | **Commission’s Ruling** |
|———-|————————|
| **Greenshoe Option not defined in Guidelines** | No express provision in MoP Guidelines dated 09.06.2023 for “Greenshoe Option” |
| **NHPC’s routine invocation of Greenshoe** | Being applied *de hors* any explicit sanction; raises transparency and fairness concerns |
| **Allocation of unallocated capacity to single bidder** | 70 MW excess allocated to NTPC REL – viewed as inconsistent with level playing field |
| **Reference to SJVN Order (79/AT/2024)** | Earlier approval was *ex abundantia cautela*; not to be treated as precedent for routine use |
**✅ CERC Decision on Greenshoe:**
– **Adopted tariff for NTPC REL only up to 300 MW additional capacity** (i.e., total 600 MW: 300 base + 300 greenshoe)
– **Disallowed** the additional 70 MW allocated to NTPC REL beyond 300 MW under Greenshoe
– **Directed all REIAs (including NHPC)** to approach **Ministry of Power** for:
– Clarification on Greenshoe mechanism
– Specificity on allocation methodology
– Capping Greenshoe allocation at **50% of originally allocated capacity** (where excess arises due to non-acceptance by other bidders)
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## 5. **Final Tariff Adopted by CERC**
| **S. No** | **Bidder** | **Base Capacity (MW)** | **Greenshoe Capacity Adopted (MW)** | **Total Adopted Capacity (MW)** | **Tariff (₹/kWh)** |
|———-|———–|———————–|————————————-|——————————–|——————-|
| 1 | Onix Renewable Limited | 100 | 100 | 200 | 3.09 |
| 2 | Jindal India Renewable Energy Limited | 180 | 120 | 300 | 3.09 |
| 3 | NTPC Renewable Energy Limited | 300 | 300 | 600 | 3.09 |
| 4 | Kolar Solar Power Private Limited | 150 | 140 | 290 | 3.09 |
| 5 | ReNew Solar Power Private Limited | 300 | 300 | 600 | 3.10 |
| 6 | Adani Renewable Energy Holding Nine Limited | 170 | 170 | 340 | 3.09 |
| **Total** | | **1200** | **1130** | **2330** | |
**Note:** Total Greenshoe capacity adopted = **1130 MW** (against 1200 MW sought by NHPC).
70 MW allocated to NTPC REL in second round **disallowed**.
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## 6. **Trading Margin – CERC Ruling**
| **Prayer** | **NHPC Request** | **CERC Decision** |
|———–|—————–|——————-|
| Trading Margin | ₹0.07/kWh from DISCOMs under PSA | Not pre-approved. To be **mutually agreed** between NHPC and DISCOMs under PSA, subject to: |
| | | – Regulation 8(1)(d) of Trading Licence Regulations, 2020 |
| | | – **2 paise/kWh cap** if escrow/LC not provided by NHPC in favour of seller |
| | | – Final margin to be determined at PSA signing stage |
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