Petition for Adoption of tariff of Firm & Dispatchable Power under “Greenshoe Option” from ISTS connected RE Power Projects coupled with Energy Storage System – EQ

Summary:

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1. **Background & Procedural Update:** The Petitioner (NHPC) informed the Commission that notices were issued to all Respondents on February 26, 2026, allowing them to file replies. However, **none of the Respondents filed any reply.**

2. **Respondent’s Position:** The counsel for Respondent *ACME Solar Holdings Limited* explicitly **supported the Petition**. They confirmed that ACME has already signed a Power Purchase Agreement (PPA) with NHPC for 250 MW of the capacity awarded under the Greenshoe Option.

3. **CERC Direction:** After hearing the arguments, the Commission directed NHPC to file an affidavit within one week. The affidavit must state:
– The current status of all PPAs and Power Sale Agreements (PSAs) related to the Greenshoe capacity.
– Copies of any such executed PPAs/PSAs.

4. **Outcome:** Subject to NHPC complying with the above direction (filing the affidavit), the Commission **reserved the matter for a final order** (i.e., tariff adoption).

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### Business Points & Key Takeaways

| Business Aspect | Implication / Detail |
| :— | :— |
| **Tariff Adoption Request** | NHPC seeks CERC’s approval to adopt the tariff discovered through competitive bidding for 1150 MW of “Firm & Despatchable” renewable power (RE + storage). This is a standard regulatory step to make the tariff legally binding. |
| **Greenshoe Option Utilization** | The petition highlights the use of a “Greenshoe Option” – a clause allowing the buyer (NHPC) to procure additional capacity (1150 MW) beyond the original bid quantity, at the same discovered tariff. This demonstrates proactive capacity expansion planning. |
| **No Opposition** | The fact that **no respondent filed a reply** and one key respondent (ACME) explicitly *supported* the petition suggests that the bidding process and tariff are not being contested. This streamlines regulatory approval. |
| **Regulatory Condition** | CERC has not yet approved the tariff. The final order is conditional on NHPC providing a clear affidavit on the status of all PPAs/PSAs. This is a procedural checkpoint to ensure all agreements are in place before tariff adoption. |
| **Project Readiness** | ACME’s confirmation of an already-signed PPA for 250 MW indicates that at least part of the Greenshoe capacity is contractually committed and ready for implementation post-tariff adoption. |
| **Strategic Importance** | The capacity (1150 MW RE + storage) provides “Firm & Despatchable” power – addressing the intermittency issue of renewable energy. This is critical for grid stability and replacing conventional thermal power. |
| **Next Steps for NHPC** | NHPC must swiftly file the required affidavit. Once CERC issues the final order adopting the tariff, NHPC can proceed with finalizing all PPAs/PSAs and project execution. |

**Conclusion:** The proceedings indicate that the tariff adoption for the 1150 MW Greenshoe capacity is likely to be approved by CERC, pending a routine compliance filing from NHPC. The lack of opposition and existing PPA for 250 MW signal smooth regulatory progress for this large-scale firm renewable power procurement.

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