The Central Electricity Regulatory Commission (CERC) has cleared the tariff implementation of NHPC Limited’s 3000 MW ISTS-connected Solar Photovoltaic (PV) schemes on 20th March 2025. The Section 63 order of the Electricity Act, 2003, is a milestone in India’s renewable energy industry.
NHPC submitted tariff adoption petition after competitive bidding as per July 28, 2023, Ministry of Power guidelines. There were eight successful bidders who were allotted projects in tariffs between Rs 2.52/kWh and Rs 2.53/kWh.
Competitive Bidding and Project Allocation
NHPC floated the bid on June 19, 2023, with 16 bidders. After technical and financial tests, an e-reverse auction was conducted on November 6, 2023, and the following projects were allocated:
- Avaada Energy Private Limited: 1000 MW at Rs 2.53/kWh
- Jakson Limited: 400 MW at Rs 2.53/kWh
- Green Infra Clean Wind Technology Limited: 300 MW at Rs 2.53/kWh
- Apraava Energy Private Limited: 250 MW at Rs 2.53/kWh
- Hinduja Renewables Energy Private Ltd: 250 MW at Rs 2.53/kWh
- Solairedirect Energy India Private Limited: 250 MW at Rs 2.52/kWh
- Hazel Hybren Private Limited: 300 MW at Rs 2.53/kWh
- Sprng Energy Private Limited: 250 MW at Rs 2.53/kWh
Power Purchase and Sale Agreements
NHPC signed Power Purchase Agreements (PPAs) with these firms and Power Sale Agreements (PSAs) later on with the distribution firms. Capacity allocation was with Uttar Pradesh Power Corporation Limited (UPPCL) for 1525 MW and Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 1475 MW.
Delays and Regulatory Issues
NHPC’s application for tariff adoption was postponed by nearly 10 months, and the project developers were concerned. Hazel Hybren Private Limited and Green Infra Clean Wind Technology Limited objected to the impact on the commissioning dates as well as the financial closure dates. The Commission, however, upheld that while dilations in project timelines are a reason for tariff adoption delays, procedural dilations in NHPC’s application are not necessarily an entitlement for developers to implement changes in schedules.
Regulatory Decision
The CERC order enables NHPC to prepare such projects needed for achieving India’s renewable energy goals. The approved tariffs would remain in force for 25 years in the PPAs.
The order also emphasizes the importance of compliance with regulatory schedules on time to avoid uncertainty in power purchase and financing.
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