The Central Electricity Regulatory Commission (CERC) has approved tariffs of  ₹4.25 (~$0.047)/kWh and ₹4.26 (~$0.047)/kWh for SJVN to procure 1.2 GW of power from firm and dispatchable renewable energy projects, along with a greenshoe option of 1.2 GW.

The Commission stated that the approved trading margin will be in accordance with the power sale agreements (PSA) to be signed between SJVN and the distribution companies for the remaining 1,200 MW capacity.

Background

SJVN floated a tender for the supply of 1,200 MW of firm and dispatchable renewable energy (FDRE) from interstate transmission system-connected projects with energy storage systems. It also included an additional greenshoe option for 1,200 MW capacity.

In response to the tender, SJVN received nine bids totaling 2,160 MW.

According to the tender guidelines, since the cumulative capacity quoted by bidders (2,160 MW) exceeds 80% of the bid capacity (1,728 MW), the available capacity was capped at 1,200 MW.

SJVN awarded letters of award to bidders for the entire 2,400 MW capacity, which includes the greenshoe capacity.

Hero Solar, Ganeko One Energy, Juniper Green Energy, and Renew Solar Power secured 120 MW, 140 MW, 200 MW, and 150 MW, respectively, at a tariff of ₹4.25 (~$0.047)/kWh each. Avaada Energy won 590 MW at a tariff of ₹4.26 (~$0.047)/kWh.

Under the greenshoe option, all companies received additional capacity at the same tariffs.

SJVN informed the Commission that it has signed a PSA with Uttar Pradesh Power Corporation (UPPCL) for the sale of 1,200 MW of power.

SJVN approached the Commission to approve the discovered tariffs and the trading margin of ₹0.07 (~$0.0008)/kWh

Commission’s Analysis

The Commission observed that the tariffs were discovered through a transparent and competitive bidding process.

It also noted that SJVN has signed PSAs with UPPCL for the sale of 1,200 MW of power.

After taking note of SJVN’s petition to approve the tariff for the 1,200 MW capacity and the greenshoe capacity, the Commission approved the tariffs.

However, regarding SJVN’s request to approve a trading margin of ₹0.07 (~$0.0008)/kWh, the Commission said that the trading margin will be as per the PSAs to be signed between SJVN and the distribution companies.

The Commission added that in the event SJVN fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the renewable energy power generators, the trading margin will be limited to Rs. 0.02 (~$0.0002)/kWh.

In July 2025, CERC approved tariffs ranging from ₹4.48 (~$0.051)/kWh to ₹4.56 (~$0.052)/kWh for NHPC’s 1.2 GW FDRE projects.

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