Tariff adoption submitted by Solar Energy Corporation of India (SECI) for 1,200 MW (1.2 GW) of the interstate transmission system (ISTS) linked renewable energy projects (ISTS VII) with guaranteed peak power supply, the Central Electricity Regulatory Commission (CERC) has approved the power tariff.
The peak power tariff of Rs. 6.12/kWh for the 900 MW granted to Greenko Energies and Rs. 6.85/kWh for the 300 MW awarded to ReNew Solar Power was authorized, along with the off-peak tariff of Rs. 2.88/kWh for both the projects.
Additionally, the trading margin of Rs. 0.07/kWh, as stipulated in the power sale agreement (PSA), was also allowed by the central regulator.
To establish 1,200 MW of ISTS-connected green energy projects (ISTS VII) with ensured peak power supply, SECI issued a bid invitation in August 2019. In this tender, Greenko Energies (900 MW) and ReNew Solar Power (300 MW) were later named the winning bidders.
Afterward, SECI signed PSAs with the distribution companies (DISCOMs) of Bihar & Rajasthan, Damodar Valley Corporation (DVC), and the Electricity Department of Goa at the rates of Rs. 2.88/kWh (off-peak tariff) + Rs. 6.85/kWh (peak hour tariff) for 300 MW, and Rs. 2.88/kWh (off-peak tariff) + Rs. 6.12/kWh (peak hour tariff) for 900 MW, along with a trading margin of Rs. 0.07/kWh.
According to SECI, guidelines for solar, wind, and wind-solar hybrid systems are intended to promote and purchase green energy and do not state that renewable energy must always be purchased at a fixed price on a 24-hour basis.
SECI stated that the rates found for buying electricity from renewable power producers were competitive and advantageous to the holders of distribution licenses and the end users.
The selected bidders’ agreed-upon individual tariffs for the renewable energy projects, for which SECI had entered into PPAs based on the PSAs with the DISCOMs, were approved by the Commission.
As stipulated in the PSA, the trading margin of Rs. 0.07/kWh was also accepted by the Commission since it complied with trading license rules.
The trading margin shall be restricted to Rs. 0.02/kWh as defined in trading license regulations in the event that the SECI fails to offer an escrow agreement or irrevocable, unconditional, and revolving letter of credit to the wind producers.
As per the Commission, the peak power program aims to match distribution licensees’ peak demand patterns and make firm and dispatchable renewable energy accessible at competitive rates.