Petition for Adoption of tariff of 1500 MW Solar PV Power Projects Connected to the ISTS of the Ministry of Power, Government of India as amended from time to time – EQ
Summary:
—
### 1. Background and Context
– **Petitioner:** NTPC Limited.
– **Prayer:** Adoption of tariff discovered through competitive bidding for 1500 MW ISTS-connected solar PV projects, and approval of a trading margin of **₹0.07/kWh**.
– **Governing Framework:**
– **Guidelines for Tariff-Based Competitive Bidding for Grid-Connected Solar PV Power Projects** (Ministry of Power, **July 28, 2023**).
– **NTPC’s Role:** Intermediary procurer – enters into **Power Purchase Agreements (PPAs)** with generators and back-to-back **Power Sale Agreements (PSAs)** with distribution licensees.
—
### 2. Bidding Process and Timeline
| Event | Date |
|——-|——|
| RfS Issued | February 8, 2024 |
| Pre-bid Conference | March 1, 2024 |
| Bid Submission Deadline | April 19, 2024 |
| Technical Bid Opening | April 19, 2024 |
| Financial Bid Opening | May 20, 2024 |
| e-Reverse Auction (e-RA) | May 23, 2024 |
| Letters of Award (LoAs) Issued | December 4, 2024 |
—
### 3. Bids Received and Evaluation
– **Total bids:** 5 bidders, **aggregate capacity 2100 MW** (against 1500 MW tendered).
– **Techno-commercially qualified bidders:**
| S. No. | Bidder | Capacity (MW) |
|——–|——–|—————|
| 1 | Avaada Energy | 750 |
| 2 | JSW Neo Energy | 700 |
| 3 | Renew Solar Power | 300 |
| 4 | Apraava Energy | 50 |
| 5 | Illuminate Hybren | 300 |
– **e-RA Outcome (May 23, 2024):**
| S. No. | Bidder | Allotted Capacity (MW) | Tariff (₹/kWh) |
|——–|——–|————————|—————-|
| 1 | Apraava Energy | 50 | **2.68** |
| 2 | Avaada Energy | 750 | **2.69** |
| 3 | Renew Solar Power | 300 | **2.69** |
| 4 | JSW Neo Energy | 400 | **2.69** |
| **Total** | | **1500 MW** | |
– Illuminate Hybren (L5 with ₹2.72/kWh) received no allocation.
—
### 4. CERC’s Observations and Scrutiny
– The Commission noted that the discovered tariffs (₹2.68–2.69/kWh) appeared **on the higher side** compared to:
– SECI’s Tranche XIII (₹2.56–2.57/kWh) – *Petition No. 255/AT/2024*
– SECI’s Tranche XIV (₹2.57–2.58/kWh) – *Petition No. 256/AT/2024*
– NTPC’s own earlier tender (₹2.59–2.60/kWh) – *Petition No. 223/AT/2024*
– NTPC was directed to **justify the rates**. In its compliance affidavit, NTPC argued:
– The process was **transparent international competitive bidding**.
– **Adequate participation** (5 bidders, 2100 MW capacity).
– The **Bid Evaluation Committee certified** the process and the reasonableness of tariffs.
– Comparison with earlier NTPC tender (Petition No. 223/AT/2024) was “just and fair” due to similar RfS terms.
—
### 5. Decision on Tariff Adoption
– The Commission was **satisfied** that the bidding process was conducted in **accordance with the 2023 Solar Guidelines** and was transparent.
– Under **Section 63 of the Electricity Act, 2003**, the Commission **adopted the discovered tariffs** as follows:
| Successful Bidder | Capacity (MW) | Adopted Tariff (₹/kWh) |
|——————-|—————|————————|
| Apraava Energy | 50 | 2.68 |
| Avaada Energy | 750 | 2.69 |
| Renew Solar Power | 300 | 2.69 |
| JSW Neo Energy | 400 | 2.69 |
| **Total** | **1500 MW** | |
—
### 6. Trading Margin
– NTPC sought approval for a trading margin of **₹0.07/kWh** as specified in the PSA.
– **CERC’s ruling:**
– Under **Regulation 8(1)(d)** of the **Trading Licence Regulations**, parties may mutually agree on a trading margin for long-term transactions.
– **However**, if NTPC fails to provide an **escrow arrangement or an irrevocable, unconditional, revolving letter of credit** to the generators, the trading margin shall be limited to **₹0.02/kWh** as per the proviso to Regulation 8(1)(d) and Regulation 8(1)(f).
—
For more information please see below link:
