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CERC Sets Rs 2.37/kWh Tariff For 300 MW Solar Project

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In a recent ruling, the Central Electricity Regulatory Commission (CERC) set a tariff of Rs 2.37/kWh for a 300 MW solar project for which the Solar Energy Corporation of India (SECI) signed a power sale agreement (PSA) with distribution licensees, along with SECI’s trading margin of 0.07/kWh.

The Commission stated that tariffs for the remaining 1,700 MW would be implemented once SECI executed the PPAs.

Earlier, SECI filed a petition for tariff approval for 2,000 MW of ISTS-connected solar power projects (Tranche-IX), for which it published a request for selection (RfS) together with a draft power purchase agreement (PPA) and PSA on March 20, 2020.

Following that, SECI signed a PPA with Thar Surya 1 Private Limited (project company of winning bidder – Avikiran Surya India) for 300 MW capacity at Rs 2.37/kWh, as well as PSAs with BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and Uttarakhand Power Corporation for 90 MW, 210 MW and 100 MW, respectively.

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The DISCOMs had also agreed to a trading margin of Rs 0.07/kWh, according to SECI’s statement.

SECI further stated that, under Article 12.1.3 of the PPAs and Article 8.1.3 of the PSAs, any change in the rates of GST, Safeguard Duty and Basic Custom Duty, if any, shall be regarded a ‘Change in Law’ and, as such, requested acknowledgement of the ‘Change in Law’ provision.

SECI had signed a PPA with Thar Surya for 300 MW, while a PSA with Uttarakhand Power Corporation for 100 MW was in the works.

The petitioner argued that PPAs with solar power providers should be completed following PSAs with distribution licensees, which was compatible with the RfS rule.

The Commission highlighted that SECI had signed PPAs for just 300 MW, while the remaining 1,700 MW had not been signed, and functioned as an intermediate agency in the purchase and sale of power under PPA and PSA.

The central regulator determined that it was acceptable to limit the tariff’s adoption to the capacity for which a PPA had been negotiated, which is 300 MW, for the supply of electricity to the selected distribution licensees via PSA with the petitioner.

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Therefore, the Commission granted a price of Rs 2.37/kWh for a 300 MW solar power plant being constructed by Avikiran Surya India, as well as a trading margin of Rs 0.07/kWh.

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