The Central Electricity Regulatory Commission (CERC) has adopted a tariff of ₹3.19 (~$0.0339)/kWh discovered by SJVN for 1,200 MW of interstate transmission system-connected wind-solar hybrid power projects.

The Commission directed SJVN to complete the execution of power purchase agreements with developers and power sale agreements with distribution companies. It also instructed that copies of these agreements be placed on record once finalized.

In case the awarded capacity does not materialize into signed agreements, SJVN must inform the Commission.

The Commission permitted SJVN to charge a trading margin of ₹0.07 (~$0.0007)/kWh, subject to compliance with payment security mechanisms. If such mechanisms are not provided, the margin will be restricted to ₹0.02 (~$0.0002)/kWh as per applicable regulations.

Background

SJVN issued a tender in June 2024 for the procurement of hybrid power. Fifteen bidders participated and collectively quoted 3,700 MW of capacity against the tendered 1,200 MW.

Following the reverse auction, five bidders emerged successful and were issued letters of award in December 2024.

SJVN stated that the process ensured adequate competition and resulted in competitive tariffs. It also submitted a conformity certificate confirming that the bidding process was conducted transparently and in compliance with the guidelines.

SJVN told the Commission that it was tying up the power with distribution companies and will execute power purchase agreements with developers after finalizing power sale agreements. It emphasized that tariff adoption is necessary to enable the timely execution of these agreements and the implementation of the projects.

SJVN also addressed the issue of the Uniform Renewable Energy Tariff mechanism, which had been withdrawn after the bidding process. It clarified that bids already concluded and letters of award issued remain valid and enforceable on a standalone basis.

Commission’s Analysis

The Commission observed that SJVN followed a competitive and transparent process. The request for selection was issued publicly, and amendments and clarifications were provided during the bidding stage. A tender committee was constituted to evaluate bids and ensure compliance. The process included technical qualification, opening of financial bids, and an e-reverse auction to arrive at the final tariff.

The Commission highlighted that all 15 bidders were found to be technically responsive, indicating strong competition. The reverse auction resulted in a uniform tariff of ₹3.19 (~$0.0339)/kWh for the entire awarded capacity. The evaluation committee certified that the process was transparent and the discovered tariff was reasonable and consistent with the requirements of the tender.

Adopting the tariffs, it said the order was subject to the condition that SJVN successfully ties up the capacity through power purchase and sale agreements.

The Commission allowed SJVN to charge a trading margin of ₹0.07 (~$0.0007)/kWh, subject to compliance with payment security mechanisms.

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