Petition for the Adoption of a tariff for 2000 MW ISTS Solar PV Power Projects with 1000 MW/4000 MWh ESS as per the guidelines of the Government of India – EQ
Summary:
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#### 1. Subject Matter & Significance
This petition was filed by the **Solar Energy Corporation of India Limited (SECI)** under **Section 63 of the Electricity Act, 2003**, seeking the adoption of tariffs discovered through a competitive bidding process for:
– **2,000 MW** of Inter-State Transmission System (ISTS)-connected Solar PV Power Projects
– Paired with **1,000 MW / 4,000 MWh** Energy Storage Systems (ESS)
This is a landmark project under the **Firm and Dispatchable Renewable Energy (FDRE)** framework, designed to deliver reliable, schedulable renewable power—addressing the intermittency challenge of traditional solar projects.
#### 2. Legal Framework
– **Section 63, Electricity Act, 2003:** Mandates that the Appropriate Commission *shall adopt* the tariff if it is determined through a transparent bidding process in accordance with Government of India guidelines.
– **Governing Guidelines:** Ministry of Power Resolution No. 23/03/2023-R&R dated **June 9, 2023** — “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid Connected Renewable Energy Power Projects with Energy Storage Systems.”
#### 3. Bidding Process Overview
| Milestone | Date |
|———–|——|
| RfS Issued by SECI | June 12, 2025 |
| Last Date for Bid Submission | August 29, 2025 |
| Techno-Commercial Bid Opening | September 3, 2025 |
| Financial Bid Opening & e-Reverse Auction | October 15, 2025 |
| Letters of Award (LoAs) Issued | October 27, 2025 |
**Participation:**
– **Total Bids Received:** 27 (aggregate capacity: 7,220 MW)
– **Techno-Commercially Qualified:** 26 (aggregate: 7,070 MW)
– **Shortlisted for e-Reverse Auction:** 25
– **Successful Bidders:** 11
#### 4. Discovered Tariffs
The e-reverse auction resulted in highly competitive tariffs:
| Tariff (₹/kWh) | Number of Bidders | Total Awarded Capacity (MW) |
|—————-|——————|—————————-|
| ₹2.86 | 8 | 1,530 |
| ₹2.87 | 3 | 470 |
| **Total** | **11** | **2,000** |
**Successful Bidders & Allocations:**
| S. No. | Successful Bidder | Awarded Capacity (MW) | Tariff (₹/kWh) |
|——–|——————-|———————-|—————-|
| 1 | Welspun Renewable Energy Private Limited | 200 | 2.86 |
| 2 | MB Power (Madhya Pradesh) Limited | 150 | 2.86 |
| 3 | Shivalaya Construction Limited | 600 | 2.86 |
| 4 | Oswal Cables Limited | 50 | 2.86 |
| 5 | Purvah Green Power Private Limited | 300 | 2.86 |
| 6 | Banyan Insolation Private Limited | 100 | 2.86 |
| 7 | LC Infra Projects Private Limited | 50 | 2.87 |
| 8 | Stockwell Solar Services Private Limited | 80 | 2.87 |
| 9 | SAEL Industries Limited | 300 | 2.87 |
| 10 | GH2 Solar Limited | 50 | 2.87 |
| 11 | Navayuga Green Energy Private Limited | 120 | 2.87 |
| **Total** | | **2,000** | |
#### 5. Key Technical & Commercial Features (as per Guidelines)
– **Project Structure:** Each project combines solar PV with energy storage (ESS) to ensure firm, dispatchable power. Mandatory ESS capacity: **0.5 MW / 2 MWh per 1 MW of project capacity**.
– **Peak Power Commitment:** Buying Entities can draw power during 4 peak hours (evening: 18:00–24:00) up to **2,000 kWh per 100 MW** daily.
– **Annual CUF Requirement:** Minimum **19%**, with defined bands for variability.
– **PPA Term:** **25 years** from the Scheduled Commencement of Supply Date (SCSD).
– **Power Source:** 100% renewable energy; up to 5% (annual energy terms) may be sourced from green market/bilateral agreements.
– **Payment Security:** ESCROW or irrevocable, revolving Letter of Credit (LC) as per CERC Trading Licence Regulations.
#### 6. CERC Decision & Directives
1. **Tariff Adoption:** The Commission adopted the discovered tariffs (₹2.86/kWh and ₹2.87/kWh) for each successful bidder under Section 63 of the Electricity Act, 2003.
2. **Conformity Certification:** SECI submitted required Conformity Certificates confirming that no deviations were made from the 2023 Guidelines and that the evaluation process complied with the RfS provisions.
3. **Trading Margin:** SECI’s request for a trading margin of **₹0.07/kWh** to be paid by DISCOMs/buying entities was noted. The Commission clarified:
– Trading margins are to be mutually agreed between parties as per Regulation 8(1)(d) of the Trading Licence Regulations.
– However, if SECI fails to provide the mandated escrow/LC payment security mechanism, the trading margin shall be capped at **₹0.02/kWh**.
4. **Compliance & Reporting:** SECI is directed to place on record copies of the final Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) once executed. Any failure to fructify the awarded capacity must also be reported.
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