Petition for Adoption of Tariff for the ISTS Grid connected Solar Power projects of 1200 MW with “Greenshoe Option” by Ministry of Power, Govt. of India (NHPC Tranche-IX) – EQ
Summary:
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### **Key Findings & Decisions by the Commission**
1. **Tariff Adoption (Modified):**
– The Commission **adopted the discovered tariffs** but **reduced the total capacity** from 2,170 MW to **1,670 MW**.
– **Reasoning:** Concern over the “Greenshoe Option” process lacking explicit provisions in the central guidelines, raising issues of transparency and equal treatment of bidders.
– **Final Adopted Capacity & Tariffs:**
– **Teerth Gopicon Ltd:** 70 MW @ ₹2.43/kWh
– **Hanur Solar Power Pvt Ltd:** 200 MW (base) + 200 MW (Greenshoe) = **400 MW** @ ₹2.46/kWh (base) & ₹2.43/kWh (Greenshoe)
– **ReNew Solar Power Pvt Ltd:** 300 MW (base) + 300 MW (Greenshoe) = **600 MW** @ ₹2.47/kWh (base) & ₹2.43/kWh (Greenshoe)
– **Avaada Energy Pvt Ltd:** 600 MW @ ₹2.47/kWh (no Greenshoe capacity approved)
– *Note:* Bharat Petroleum Corporation Ltd was disqualified for quoting only 30 MW (below the 50 MW minimum).
2. **Trading Margin:**
– Approved a trading margin of **₹0.07/kWh** for NHPC.
– **Critical Condition:** If NHPC fails to provide an escrow arrangement or an irrevocable, revolving Letter of Credit to the generators, the margin is capped at **₹0.02/kWh** as per Trading Licence Regulations.
3. **Condonation of Delay:**
– The petition was filed late (beyond the mandated 15 days post e-reverse auction). The Commission **condoned the delay** but issued a strict warning for future compliance.
4. **Key Directions for the Future:**
– **Clarification from Ministry:** Directed all REIAs (including NHPC) to approach the **Ministry of Power** for explicit clarification on the “Greenshoe Option,” including limits (e.g., up to 50% of original allocation) to ensure uniformity and fairness.
– **Strict Timelines:** Reiterated that future tariff adoption petitions must be filed within **15 days** of tariff discovery.
### **Critical Observations by the Commission**
– **Concern over “Greenshoe Option”:** The Commission noted that while the option may improve tariff efficiency, the *absence of explicit provisions* in the central guidelines makes its continued use *prima facie* inconsistent with Section 63’s requirement for transparency and fair competition.
– **Transparency Issue:** The Commission observed that allocating additional capacity beyond original allotments through this option could raise concerns about a “level playing field” among bidders.
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