CERC Approves Tariff of ₹2.77/kWh for 1,200 MW of Wind Projects

The projects were tendered by SECI

December 11, 2019

/ Wind

The Central Electricity Regulatory Commission (CERC) has given its approval for 1.2 GW of wind projects floated by SECI.

The central commission observed that the selection of successful bidders and the adoption of tariff for the Inter-State Transmission System (ISTS) connected wind projects (Tranche V) were carried out by the Solar Energy Corporation of India (SECI) through a transparent process of competitive bidding.

Noting that there has been no deviation from the guidelines in the Request for Selection (RfS) documents issued by SECI, the commission has approved the adopted tariff of ₹2.77 (~$0.039)/kWh for the projects.

In its petition seeking the CERC’s approval, SECI stated that it had agreed to sell the generated wind power to the DISCOMS at the rate of ₹2.84 (~$0.039)/kWh with a trading margin of ₹0.07 (~$0.00098)/kWh.

As per the guidelines, SECI, in the capacity of an intermediary agency, invited proposals for setting up of ISTS-connected wind power projects on a pan India basis, on “Build Own Operate” basis for an aggregate capacity of 1,200 MW and procurement of wind power from the projects.

In September 2018, SECI had conducted the auction for this capacity. A winning tariff of ₹2.76 (~$0.038)/kWh had emerged in the auction. Torrent Power had quoted the lowest tariff to develop 115 MW of wind power projects. In all, seven bidders had participated in the financial bidding, with tariffs ranging between a high of ₹2.85 (~$0.039)/kWh and a low of ₹2.76 (~$0.038)/kWh.

Adani Green Energy quoted ₹2.76 (~$0.038)/kWh to develop 300 MW, Alfanar Group quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW, and SITAC Kabini Renewables quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW. Ecoren Energy India Private Limited quoted ₹2.77 (~$0.0381)/kWh to develop 175 MW and ReNew Wind Energy quoted ₹2.77 (~$0.0381)/kWh to develop 300 MW, though the company will be awarded only 10 MW due to bucket filling method employed to award capacities to successful bidders,” added the SECI official.

SECI had floated the tender to develop 2 GW of wind power projects to be developed across the country under Tranche-V in May 2018.

After the allocation of capacity, SECI entered the PSAs with Haryana Power Purchase Centre, North Bihar Power Distribution Company Limited, South Bihar Power Distribution Company Limited, secretary (Power), Government of Puducherry; BSES Rajdhani Power Ltd.; and with BSES Yamuna Power Ltd. SECI also entered the PPAs with Adani Wind Energy Limited, Sitac Kabini Renewables Private Limited, Ecoren Energy India Private Limited, Torrent Power Limited, and Alfanar Company.

As per the guidelines by the ministry, the power procurer is required to inform the commission about the initiation of the bidding process, which SECI did not do. The CERC has directed SECI to comply with the process for future projects.

Earlier this year, SECI invited bids from wind power generators to develop 1,200 MW of ISTS connected wind projects under Tranche-IX of the ISTS program. The project will be developed on a build-own-operate basis (BOO). SECI had set a ceiling tariff of ₹2.85 (~$0.040)/kWh for these projects.