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					</table>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has allowed a solar developer to continue injecting infirm power from the 100 MW solar component of its 600 MW wind-solar hybrid project and sell the power outside the power purchase agreement (PPA) until partial or early commissioning because the project’s wind component was delayed due to connectivity issues.
Background
The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) awarded 600 MW of wind-solar hybrid projects to TP Saurya, a subsidiary of Tata Power Renewable Energy. The awarded capacity included 400 MW of solar capacity planned in Koppal, and 200 MW of wind capacity in Gadag, both in Karnataka. The power would be supplied through SECI to Mundra Port and Special Economic Zone (MPSEZ) Utilities, and Calcutta Electric Supply Corporation (CESC).
TP Saurya and SECI then signed a PPA, which became effective on January 11, 2023. The original scheduled commercial operation date (SCOD) for the hybrid project was January 11, 2025.
CERC adopted a tariff of ₹2.53 (~$0.027)/kWh, revising the SCOD to May 16, 2025.
Later, TP Saurya sought to shift 100 MW of solar capacity from Koppal to Bikaner, Rajasthan, which SECI approved.
TP Saurya informed SECI and the buying entities that the 100 MW Bikaner solar capacity would be commissioned by June 30, 2024.
It also proposed selling the hybrid renewable power at ₹3.08 (~$0.032)/kWh, stating that the 100 MW solar component was ready before the full hybrid project could achieve commercial operation. TP Saurya added that the bidding documents allowed power from the operational solar component to be sold outside the power purchase agreement (PPA) until the delayed wind capacity was resolved.
CESC and MPSEZ did not accept the proposed tariff. MPSEZ said the power should be supplied at the PPA tariff of ₹2.53 (~$0.027)/kWh.
The Northern Regional Load Despatch Centre (NRLDC) approved a trial run for the 100 MW solar project, and SECI issued a no-objection certificate (NOC) allowing TP Saurya to sell power outside the PPA.
SECI extended the commissioning date of the full 600 MW project due to delays in the Gadag-II substation for the wind component.
TP Saurya then entered into a power delivery agreement with Tata Power Trading Company for 70 MW of the solar capacity.
NRLDC also granted TP Saurya approval to inject infirm power from the 100 MW solar component until March 13, 2025. After this extension ended, TP Saurya approached the Commission for a further extension.
TP Saurya said its 100 MW solar capacity was ready for commissioning. However, the full hybrid project could not be commissioned because the 200 MW wind component was delayed.
It added that the PPA did not allow commissioning of a single source, either solar or wind, and that both sources must be commissioned in the agreed ratio, even for part commissioning.
MPSEZ Utilities and CESC argued that TP Saurya’s 100 MW of solar power should be offered to them at the PPA tariff, rather than sold to third parties at a higher rate. They also sought withdrawal of SECI’s NOC for third-party sale.
Commission’s Analysis
The Commission observed that TP Saurya could not declare commercial operation for only the 100 MW solar capacity because the PPA mandated the solar and wind capacities to be commissioned together in the agreed ratio.
It noted that the wind component was delayed due to connectivity issues and SECI had already extended the SCOD.
The Commission allowed TP Saurya to continue injecting infirm power from the 100 MW solar component until the required 50 MW wind component becomes ready.
CERC held that since TP Saurya had not reached a mutually agreed tariff with MPSEZ Utilities or CESC, it could sell the infirm power outside the PPA until partial or early commissioning of the hybrid project. The Commission, however, rejected TP Saurya’s proposed tariff of ₹3.08 (~$0.032)/kWh.
This June, CERC <a href="https://www.mercomindia.com/cerc-adopts-tariff-for-sjvns-1-5-gw-peak-power-tender" target="_blank" rel="noopener">adopted</a> a tariff of ₹6.74 (~$0.078)/kWh for 1,500 MW of assured peak power capacity to be procured by SJVN from ISTS-connected renewable energy projects coupled with energy storage systems.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

CERC Allows Developer to Sell 100 MW of Infirm Solar Power Outside Agreement

The Maharashtra Electricity Regulatory Commission (<a href="https://www.merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has authorized the Maharashtra State Power Generation Company Limited (<a href="https://www.mahagenco.in/" target="_blank" rel="noopener">MAHAGENCO</a>) and the Maharashtra State Electricity Distribution Company Limited (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) to procure 250 MW of solar power at ₹2.51 (~$0.033)/kWh from TP Saurya, a subsidiary of Tata Power.
The Commission directed the parties to sign the power purchase agreement (PPA) and the power sale agreement (PSA) within 15 days. It also approved the trading margin of ₹0.07 (~$0.0009)/kWh as sought in the draft PSA.
The regulator said that the power procured from these projects would be eligible for fulfilling the renewable purchase obligation (RPO) of MSEDCL.
Earlier, MAHAGENCO and MSEDCL had filed a joint petition seeking approval of ₹2.51 (~$0.033)/kWh as the tariff along with a trading margin of ₹0.07 (~$0.0009)/kWh for long-term procurement of 250 MW of power from solar projects at the Dondaicha Solar Park in Dhule, Maharashtra.
Background
In 2018, MAHAGENCO, through the Solar Energy Corporation of India (SECI), decided to carry out the selection of solar power developers for the Phase-I of 250 MW capacity. Talettutayi Solar, Tata Power, and NTPC were declared the winners in the reverse auction. However, due to the delay in finalizing the PSA conditions between SECI and MSEDCL, and the refusal of bidders to extend the bid validity, SECI annulled the tender.
In January 2021, MAHAGENCO <a href="https://mercomindia.com/bids-invited-develop-solar-projects/" target="_blank" rel="noopener">issued</a> the tender afresh with a ceiling tariff of ₹2.83 (~$0.037)/kWh and a trading margin of ₹0.07 (~$0.0009)/kWh. MAHAGENCO was to act as an intermediary procurer between the developer and MSEDCL.
TP Saurya was <a href="https://mercomindia.com/tata-power-subsidiary-wins-maharashtras-250-mw-solar-auction-quoting-%e2%82%b92-51-kwh/" target="_blank" rel="noopener">declared</a> the winner with a tariff of ₹2.51 (~$0.033)/kWh. MSEDCL consented to procure 250 MW of solar power at the discovered tariff and said that the Commission would decide on the trading margin.
MAHAGENCO, in its submission, said that it would be developing the 220/33 kV solar park pooling station as depository work through the Maharashtra State Electricity Transmission Company for which tendering had been completed. It added that the evacuation work would be completed within 15 months from the letter of award to the contractor.
Being the intermediary procurer for the 250 MW Dondaicha Solar Park, MAHAGENCO requested the approval of the trading margin of ₹0.07 (~$0.0009)/kWh as per the guidelines issued by the Ministry of New and Renewable Energy (MNRE).
Commission’s analysis
The Commission observed that MNRE, through its letter dated December 12, 2014, had approved the implementation of a program to set up at least 25 solar parks each with a capacity of 500 MW and above with a target of over 20,000 MW of solar power installed capacity in five years from FY 2014-15 to FY 2018-19.
Initially, MAHAGENCO envisaged the development of Dondaicha Solar Park with a capacity of 500 MW. Due to the non-availability of land and power evacuation constraints, it decided to execute the project in two phases with a capacity of 250 MW each. MNRE approved the reduction in the sanctioned capacity.
The Commission added that the tariff of ₹2.51 (~$0.033)/kWh was discovered through a transparent bidding process.
It observed that MAHAGENCO and MSEDCL had sought a deviation from the guidelines regarding the provisions relating to the payment security fund and state government guarantee.
The Commission said since there was a provision relating to the payment security fund in the draft PPA and PSA, it could not be deleted.
It also noted that the trading margin of ₹0.07 (~$0.0009)/kWh was allowed in the guidelines notified by the Ministry of Power and also stipulated in the draft bidding documents.
In June last year, MERC had <a href="https://mercomindia.com/maharashtra-approves-tariff-solar-tata-avaada/" target="_blank" rel="noopener">approved</a> a tariff of  ₹2.90 (~$0.04)/kWh for the long-term procurement of 350 MW of solar power by MSEDCL from 350 MW of grid-connected intrastate solar projects (Phase-V).
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Tariff of ₹2.51/kWh Approved for 250 MW of Solar Projects at Dondaicha Solar Park

TP Saurya, a <a href="https://www.tatapower.com/" target="_blank" rel="noopener">Tata Power</a> subsidiary, was declared the winner in the Maharashtra State Power Generation Company’s (<a href="https://www.mahagenco.in/" target="_blank" rel="noopener">MAHAGENCO</a>) auction for setting up 250 MW of grid-connected solar photovoltaic projects at the Dondaicha Solar Park in Dhule, Maharashtra.
<a href="https://www.sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a> and <a href="https://www.ntpc.co.in/en/services-and-initiatives/netra/key-issues-and-mandates/new-renewable-energy" target="_blank" rel="noopener">NTPC</a> Renewable Energy also participated in the bidding process and quoted ₹2.53 (~$0.034)/kWh and ₹2.82 (~$0.038)/kWh, respectively.
TP Saurya won the full capacity of 250 MW by quoting ₹2.51 (~$0.033)/kWh.
<a href="https://mercomindia.com/wp-content/uploads/2021/05/MAHAGENCO-2.png"><img loading="lazy" decoding="async" class="alignnone wp-image-26197 size-full" src="https://mercomindia.com/wp-content/uploads/2021/05/MAHAGENCO-2.png" alt="MAHAGENCO 2" width="554" height="156" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/05/MAHAGENCO-2.png 554w, https://cms.mercomindia.com/wp-content/uploads/2021/05/MAHAGENCO-2-300x84.png 300w" sizes="auto, (max-width: 554px) 100vw, 554px" /></a>
In January this year, MAHGENCO had <a href="https://mercomindia.com/bids-invited-develop-solar-projects/" target="_blank" rel="noopener">invited</a> bids from solar power developers for setting up 250 MW of grid-connected solar photovoltaic projects at the Dondaicha Solar Park in Dhule, Maharashtra. The deadline for bid submission was February 15, 2021. The tender had specified a ceiling tariff of ₹2.83 (~$0.038)/kWh, valid for 25 years.
The project is expected to cost ₹8.75 billion (~$11.8 million) and must be commissioned within 15 months from the power purchase agreement (PPA) date. It must also achieve financial closure within nine months from the date of the power purchase agreement (PPA). The project will be divided into three blocks – Block I (75 MW), Block-II (125 MW), and Block III (50 MW).
Bidders were expected to place a single bid for the entire 250 MW of projects. The declared annual capacity utilization factor (CUF) for the projects had to be not less than 19%. Developers are expected to maintain generation within a range of 10% over or 15% lower than the declared annual CUF. MAHAGENCO said it would purchase any excess generation at 75% of the tariff agreed upon in the PPA.
In July of 2020, Tata Power<a href="https://mercomindia.com/tata-power-green-receives-letter/" target="_blank" rel="noopener"> announced</a> that its wholly-owned subsidiary, Tata Power Green Energy Limited (TPGEL), received a letter of award (LoA) to develop a 225 MW hybrid renewable power project.
Earlier in 2019, in the auction for 500 MW of solar projects conducted by the Maharashtra State Electricity Distribution Company Limited, Juniper Green Energy had <a href="https://mercomindia.com/juniper-lowest-bid-maharashtra-solar/" target="_blank" rel="noopener">emerged</a> as the lowest bidder. Juniper Green had won 150 MW of solar projects in the auction at a tariff of ₹2.89 ($0.0407)/kWh. MAHAGENCO had bagged the remaining 350 MW at a tariff of ₹2.90 ($0.0409)/kWh through the bucket filling method.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>, Maharashtra currently has 1.8 GW of large-scale solar projects in operation, while around 1.5 GW of projects is under different stages of development as of December 2020.

Tata Power Subsidiary Wins Maharashtra’s 250 MW Solar Auction Quoting ₹2.51/kWh

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