The Delhi Electricity Regulatory Commission (DERC) has approved the power sale agreement (PSA) between BSES Rajdhani Power (BRPL) and Solar Energy Corporation of India (SECI) for the procurement of 1,500 MW of solar power integrated with a 750 MW/3,000 MWh energy storage system (ESS) under the interstate transmission system (ISTS) Tranche XVII.

Background

SECI floated a tender in August 2024 to set up 2,000 MW of solar capacity, combined with 1,000 MW/4,000 MWh of ESS. Five companies won the auction with tariffs of ₹3.52 (~$0.0395)/kWh and ₹3.53 (~$0.0396)/kWh.

Subsequently, the petitioner, BRPL, accepted SECI’s offer of offtake of 1,500 MW of solar power at the discovered tariff. It signed a PSA with SECI in March 2025.

SECI had executed power purchase agreements with four solar power developers — Solarcraft Power India 17 for 150 MW, Sembcorp Green Infra for 150 MW, Reliance NU Suntech for 700 MW, and NTPC Renewable Energy for 500 MW.

BRPL contended that the tariff was discovered through a competitive bidding process and complied with the Ministry of Power’s bidding guidelines. The procurement of solar power would meet BRPL’s renewable purchase obligations.

Commission’s Analysis

The Commission acknowledged that SECI had already approached the Central Electricity Regulatory Commission seeking the adoption of the discovered tariff and the trading margin of ₹0.07/kWh (~$0.00078).

It noted that CERC had referred to the relevant regulations requiring SECI to maintain an escrow arrangement or an irrevocable revolving letter of credit. Where such security is not provided, the trading margin is capped at ₹0.02 (~$0.00022)/kWh, rather than the ₹0.07 (~$0.00078)/kWh margin proposed in the bidding documents.

The Commission directed BRPL and SECI to comply with the CERC’s decision on the tariff and the trading margin, while approving the PSA.

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