The Central Electricity Regulatory Commission (CERC) has approved tariffs of  ₹2.86 (~$0.0304)/kWh and ₹2.87 (~$0.0305)/kWh discovered by Solar Energy Corporation of India (SECI) for 2,000 MW solar projects coupled with 1,000 MW/4,000 MWh of energy storage systems (Tranche XX).

The Commission directed that power purchase agreements and power sale agreements be executed for the awarded capacity. SECI must inform the Commission in case the capacity does not materialize into contractual arrangements.

Background

SECI issued the tender in June 2025. The tender attracted strong participation, with 27 bidders quoting a total capacity of 7,220 MW.

Following the evaluation, 25 bidders were shortlisted for the e-reverse auction conducted in October 2025.

The auction resulted in 11 successful bidders being awarded the entire 2,000 MW capacity, with tariffs ranging from ₹2.86 (~$0.0304)/kWh to ₹2.87 (~$0.0305)/kWh.

The winners were Welspun Renewable Energy, MB Power (Madhya Pradesh), Shivalaya Construction, Oswal Cables, Purvah Green Power, Banyan Insolation (Datta Infra), LC Infra Projects, Stockwell Solar Services, SAEL Industries, GH2 Solar, and Navayuga Green Energy.

SECI submitted that these tariffs were competitive and beneficial for distribution companies and end consumers.

SECI also informed the Commission that it would enter into back-to-back power purchase agreements with the selected developers and power sale agreements with distribution companies, subject to their consent.

Commission’s Analysis

The Commission observed that the bidding process followed a single-stage, two-part structure with separate technical and financial bids, and that an e-reverse auction was used to determine the final tariffs.

It added that there was adequate competition, as evidenced by the significant oversubscription of bids compared to the tendered capacity.

Based on the evaluation reports and conformity certificates submitted by SECI, the Commission found that no deviations from the prescribed guidelines had occurred and that the bid evaluation was conducted in accordance with the request for selection documents.

The Commission also noted the structure of the projects, which combine solar generation with energy storage systems to ensure a firm, dispatchable power supply. These projects are required to meet specified demand profiles, including peak-hour supply obligations, thereby addressing the intermittency challenges associated with renewable energy.

After reviewing the entire process, the Commission concluded that the tariffs discovered through competitive bidding were reasonable and aligned with prevailing market conditions.

Accordingly, it approved the tariffs for all 11 selected developers for the full 2,000 MW capacity.

The Commission also clarified that SECI may charge a trading margin of ₹0.07 (~$0.0007)/kWh if payment security mechanisms such as escrow arrangements or letters of credit are in place. In the absence of such mechanisms, the trading margin will be capped at ₹0.02 (~$0.00021)/kWh in line with trading licence regulations.

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