The West Bengal Electricity Regulatory Commission (WBERC) has granted CESC approval to procure 600 MW of wind-solar hybrid power through tariff-based competitive bidding.

The Commission held that the proposed long-term procurement was justified by CESC’s future power supply requirements, renewable compliance obligations, and the need to manage peak demand more efficiently.

Background

CESC filed the application seeking approval to initiate a competitive bidding process for procuring 600 MW of wind solar hybrid power on a build-own-operate basis. The application was filed as part of CESC’s long-term power procurement planning and aimed to address both its renewable purchase obligations and its growing system-level challenges during peak demand hours.

CESC submitted that it is obligated to meet renewable energy targets under the renewable energy regulations notified by the Commission.

It also referred to the notification issued by the Ministry of Power in September 2025, which mandates minimum renewable consumption obligations for distribution licensees. According to CESC, the availability of renewable energy sources remains inadequate to meet these obligations, necessitating long-term procurement.

The petitioner highlighted significant variation in its demand profile, with peak demand reaching approximately 2,728 MW and minimum demand about 500 MW. It stated that it frequently faces shortages during peak hours and must rely on short-term power markets, where prices are high, and supply is uncertain.

CESC pointed out that its success rate in procuring power from the short-term market during evening peak hours had been particularly low over the past three years. Earlier attempts to procure renewable power through short-term competitive bidding for the period from 2024 to 2027 did not attract any response from developers.

CESC argued that procuring wind-solar hybrid power would help smoothen generation patterns, reduce dependence on volatile market purchases, and provide a more reliable source of renewable energy.

Commission’s analysis

The Commission observed that CESC’s proposal was aligned with the broader policy objective of increasing renewable energy procurement while ensuring system reliability. It noted that wind-solar hybrid projects offer greater generation stability than standalone renewable sources and are therefore suitable for addressing peak demand challenges.

The regulator considered CESC’s demand profile and its reliance on short-term market purchases during peak hours, which often exposes consumers to higher costs. Long-term procurement of hybrid renewable power could help reduce such exposure while contributing to compliance with renewable purchase and consumption obligations.

The Commission also examined the proposed bidding framework and found that the salient features, such as the capacity, minimum capacity utilization factor, wind-to-solar ratio, project commissioning timeline, delivery point, and power purchase agreement tenure, were consistent with the applicable central government guidelines. Accordingly, the Commission allowed CESC to proceed with the tariff-based competitive bidding process for the procurement of 600 MW of wind-solar hybrid power.

The Commission further made it clear that any deviation from the approved framework would require prior regulatory consent and that the executed power purchase agreements would be subject to separate approval upon completion of the bidding process.

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