The Haryana Electricity Regulatory Commission (HERC) has approved the procurement of 15 MW of solar power by the Haryana Power Purchase Centre (HPPC) at a tariff of ₹2.99 (~$0.0338)/kWh.

The Commission held that the tariff is competitive, reasonable, and lower than the average power purchase cost of the state distribution companies for the financial year (FY) 2026.

Background

In 2024, the Steering Committee for Power Planning issued a tender to procure 500 MW of solar power with a maximum of 10 MW per developer. Bids were received from five bidders, including Ramsons Organic.

After the technical evaluation, financial bids were opened, and an electronic reverse auction was conducted. The lowest tariff was discovered at ₹2.99 (~$0.0338)/kWh from Ramsons Organic. Other bids ranged between ₹3.26 (~$0.0369) and ₹3.65 (~$0.0413)/kWh. The guidelines allowed only those within 5% of the lowest tariff to be considered; thus, these bids were dropped because the difference in tariff from the lowest bid was too high.

Meanwhile, the Commission directed HPPC to also accommodate other small developers, provided they were willing to match the lowest tariff. All of them except one gave their consent through affidavits to supply solar power at ₹2.99 (~$0.0338)/kWh.

HPPC petitioned the Commission to approve the discovered tariff.

The petitioner submitted that the bidding process was transparent and in line with government guidelines, the tariff discovered was competitive, and the proposed power purchase agreements were consistent with state and national renewable energy policies.

HPPC also contended that the procurement would help Haryana in achieving its solar targets, reduce distribution losses, and generate environmental and social benefits such as local employment and investment inflows.

Commission’s Analysis

The Commission observed that the selection of bidders had been carried out transparently and that the discovered tariff of ₹2.99 (~$0.0338)/kWh was reasonable. It was lower than the average power purchase cost of the distribution companies (DISCOMs) in Haryana for FY 2026, making it more attractive for consumers.

The Commission pointed out that procuring renewable energy at competitive rates was important given the rising cost of traded power, volatility in fuel prices, and challenges in the availability of coal and gas for conventional generation.

In June this year, HERC approved HPPC’s procurement of 400 MW firm and dispatchable renewable energy from NHPC through interstate transmission system-connected projects with an energy storage system at a tariff of ₹4.44 (~$0.051)/kWh.

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