Petition for the Adoption of tariff for 420 MW RTC power from ISTS-connected RE Power Projects (SECIRTC- IV) by the Ministry of Power, Government of India – EQ
Summary:
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## **1. Purpose of the Petition**
SECI filed the petition under **Section 63 of the Electricity Act, 2003** seeking CERC’s approval for:
1. Adoption of tariff discovered through competitive bidding for **420 MW RTC renewable power** under SECI-RTC-IV.
2. Approval of **₹0.07/kWh trading margin**.
This procurement is under the **MoP Guidelines dated 9 June 2023** for “firm and dispatchable renewable power with energy storage”.
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## **2. Background and Bidding Framework**
SECI, acting as the **Renewable Energy Implementing Agency (REIA)**, issued the **RfS on 28 October 2024** for **1200 MW RTC renewable energy** with ESS.
The bidding process included:
* Multiple corrigenda/amendments from Oct 2024 to Mar 2025
* Pre-bid meeting on 14 November 2024
* Submission deadline: 24 March 2025
* Financial bid opening: 26 May 2025
* E-reverse auction: 26 May 2025
A total of **5 bidders** submitted techno-commercially qualified bids for **540 MW**.
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## **3. Competitive Bidding Outcome**
After the e-Reverse Auction on **26 May 2025**, SECI awarded **420 MW** as follows:
| Bidder | Capacity (MW) | Tariff (₹/kWh) |
| ——————————– | ————- | ————– |
| Hero Solar Energy Pvt. Ltd. | 120 | 5.06 |
| Hexa Climate Solutions Pvt. Ltd. | 100 | 5.06 |
| Sembcorp Green Infra Pvt. Ltd. | 50 | 5.07 |
| Jindal India Power Ltd. | 150 | 5.07 |
LoAs were issued on **11 June 2025**.
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## **4. SECI’s Submissions on Tariff Reasonableness**
SECI provided certificates from the **Bid Evaluation Committee (BEC)** confirming that:
### **i. Tender is first-of-its-kind RTC structure**
* Requires high firmness and dispatchability
* Demands **100% annual RE power**
* Includes stringent performance metrics using **Demand Fulfilment Ratio (DFR)**
* **Monthly DFR ≥ 75%**
* **Annual DFR ≥ 80%**
* **Peak-hour DFR ≥ 90%**
* Penalties apply for shortfall
### **ii. The tariff reflects higher RTC obligations**
Compared with SJVN’s FDRE-3 tender (Feb 2025) with tariffs **₹4.82–4.91/kWh**, the RTC-IV tender is more stringent, requiring:
* Higher storage
* Better dispatch optimisation
* Higher reliability
* More complex resource integration
Thus, the discovered tariff **₹5.06–5.07/kWh** is considered fair.
### **iii. Market changes influenced the price**
Supply chain, cost of storage, financing conditions, and increased reliability needs contributed to the final tariff.
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## **5. CERC’s Analysis**
CERC examined:
* The entire RfS and bidding chronology
* Compliance with MoP Guidelines
* SECI’s conformity certificates
* BEC’s justification on tariff reasonableness
CERC found:
### **A. Process was transparent and guideline-compliant**
The bidding steps strictly followed the MoP 2023 Guidelines.
### **B. Minimum competition requirements met**
Five technically qualified bidders ensured competitive price discovery.
### **C. Evaluation Committee duly certified compliance**
All conformity certificates and tariff reasonableness assessments were in order.
### **D. No objections from respondents**
None of the four respondents filed replies against the bidding process or discovered tariff.
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