The Central Electricity Regulatory Commission (CERC) has approved tariffs of ₹3.48 (~$0.04)/kWh and ₹3.49 (~$0.04)/kWh for NHPC’s 960 MW wind-solar hybrid power projects.

The Commission also held that the trading margin would be charged per the provisions of the power sale agreements (PSAs), which are yet to be signed.

Background

NHPC had floated a tender to develop 1,500 MW wind-solar hybrid power projects in November 2023.

It received bids from three companies, totaling 1,200 MW in capacity. All three companies qualified for the e-reverse auction.

Energizent Power bid for 300 MW at a tariff of ₹3.49 (~$0.04)/kWh. Juniper Green Energy bid for 150 MW at a tariff of ₹3.52 (~$0.04)/kWh, and Avaada Energy bid for 750 MW at a tariff of ₹3.63 (~$0.041)/kWh.

Out of the 1,200 MW capacity bid for, 960 MW was allocated due to a tender clause restricting the total awarded capacity to 80% of the total quantity.

Consequently, NHPC awarded 150 MW to Juniper Green Energy at a tariff of ₹3.48 (~$0.04)/kWh, 300 MW to Energizent Power at a tariff of ₹3.49 (~$0.04)/kWh, and 510 MW to Avaada Energy at a tariff of ₹3.49 (~$0.04)/kWh.

To offtake the power from its wind-solar hybrid power projects, NHPC had sought in-principle consent from states/distribution companies (DISCOMs) for procuring 960 MW of power.

Nagaland’s Department of Power had consented to procure 88 MW at a tariff of ₹3.56 (~$0.041)/kWh.

The West Bengal State Electricity Distribution Company had initially given its consent to offtake up to 450 MW of wind-solar hybrid power. However, the consent was later rescinded.

NHPC is yet to receive consent for the balance capacity.

NHPC approached the CERC to approve the tariffs of ₹3.48 (~$0.04)/kWh for 150 MW capacity and ₹3.49 (~$0.04)/kWh for the remaining 810 MW and to condone the delay in its approaching the Commission for this purpose.

It stated that the projects are expected to be commissioned in 2026-2027, 24 months from the signing of the power purchase agreements (PPAs).

NHPC also submitted that the tariffs were discovered through competitive bidding processes and were less than the DISCOMs’ conventional power procurement costs.

It also requested the Commission to approve a trading margin of ₹0.07 (~$0.0008)/kWh.

Commission’s Analysis

CERC observed that the tariffs were discovered through a fair and transparent bidding process.

The Commission also held that NHPC must inform when the awarded capacity is tied up in PPAs and PSAs. NHPC must also notify if any capacity is not tied up in PPAs and PSAs.

CERC rejected NHPC’s petition to approve the trading margin of ₹0.07 (~$0.0008)/kWh. It noted that since the capacities have yet to be tied up with the DISCOMs, the trading margin will be as per the provisions of the PSAs yet to be signed.

However, if NHPC fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the wind-solar power generators, the trading margin will be limited to ₹0.02 (~$0.0002)/kWh.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.