The Central Electricity Regulatory Commission (CERC) has adopted a tariff of ₹2.15 (~$0.0224)/kWh for a 170 MW solar project to be developed as Unit 3 of the Neemuch Solar Park in Madhya Pradesh.

The Commission held that the tariff had been discovered through a transparent bidding process in accordance with the Ministry of Power’s guidelines.

Background

The petition was filed by Rewa Ultra Mega Solar (RUMSL) and Madhya Pradesh Power Management Company (MPPMCL). The petitioners sought the adoption of a tariff for the 170-MW solar project determined through competitive bidding.

The project forms part of the 500 MW Neemuch Solar Park in Madhya Pradesh.

The park was divided into three grid-connected solar units: 160 MW Unit 1, 170 MW Unit 2, and 170 MW Unit 3. The power generated from the park is intended to be supplied to MPPMCL and Indian Railways, acting through West Central Railways.

RUMSL was designated as the authorized representative of the procurers (MPPMCL and Indian Railways).

The Commission noted that the original 500 MW Neemuch bid resulted in the award of the entire capacity to two bidders, and that the tariff discovered in that earlier process was adopted by CERC in 2022.

However, the developer, previously awarded Unit 3, defaulted under the power purchase agreement (PPA), the implementation support agreement, and the land use permission agreement.

MPPMCL and Indian Railways terminated the PPA, while RUMSL terminated the implementation support agreement and land use permission agreement.

RUMSL issued a fresh tender in March 2024 for the development, operation, and maintenance of the 170 MW solar project. In the e-reverse auction, Waaree Forever Energies was declared the winner with the lowest tariff of ₹2.15 (~$0.0224)/kWh.

MPPMCL, RUMSL, and Indian Railways signed PPAs with Waaree Forever Energies in February 2025.

Commission’s Analysis

The Commission observed that RUMSL had secured approval from the Madhya Pradesh government for the deviations from the solar bidding guidelines. The Ministry of Power had indicated that the state government was the appropriate authority to authorize the deviations.

The Commission held that RUMSL had complied with the relevant provisions of the guidelines.

It also relied on the Bid Evaluation Committee’s certificate confirming that the bid process was carried out in accordance with the Ministry of Power guidelines. It certified that Waaree Forever Energies emerged as the successful bidder after the e-reverse bidding process with the lowest tariff of ₹2.15 (~$0.0224)/kWh.

Based on these findings, the Commission adopted the tariff for the allotted 170 MW capacity.

The Commission also directed that the payment security mechanism, including provisions relating to monthly bills, supplementary bills, letters of credit, and the payment security fund, must be followed by all the parties.

Last Month, CERC approved NHPC’s discovered tariff of ₹3.13/kWh for 1,200 MW of interstate transmission system (ISTS)-connected solar projects with 600 MW/2,400 MWh of energy storage systems.

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