The Bhakra Beas Management Board (BBMB) has undertaken a project to set up 18 MW of ground-mounted Solar PV Power Projects at four different locations connected to its inter-state transmission system. The project was facilitated through a competitive bidding process that adhered to the Solar Guidelines issued by the Ministry of Power, Government of India. The petition submitted for the adoption of the discovered tariff through this process has been under review.
BBMB issued a Request for Proposal (RfP) on December 10, 2021, to invite bids for the project. The four locations specified for the installation include a 10 MW site at Talwara, Punjab, a 4 MW site at Pong Dam, Himachal Pradesh, a 2 MW site near the bypass tunnel T1-T2 at Pong Dam, and another 2 MW site at Village Neilla, Bhakra Dam, in Himachal Pradesh. The bidding process saw several extensions to the submission deadline, with the final date set to January 21, 2022.
Only one company, SJVN Limited, participated in the tender, and after the evaluation process, it was found to meet all the techno-commercial bid parameters. Consequently, the financial bid of SJVN Limited was opened, revealing a tariff quote of ₹2.66 per unit. This tariff was negotiated down to ₹2.63 per unit in a subsequent meeting. A Letter of Intent (LoI) was issued to SJVN Limited on May 5, 2023, and a Power Purchase Agreement (PPA) was signed on September 8, 2023.
During the hearing held on May 8, 2024, BBMB representatives reiterated the points made in their petition. They highlighted that the process was conducted transparently and in compliance with the Solar Guidelines. The tariff of ₹2.63 per unit, they argued, is market-aligned and beneficial for the distribution licensees of the partner states and their consumers. The Commission was asked to consider these points in its decision regarding the adoption of the tariff.
On June 5, 2024, the final arguments were presented, and the matter was reserved for order. The Punjab Energy Development Agency (PEDA) submitted that their role was limited to facilitation as per the bid document approved by BBMB, and the compliance responsibilities rested with BBMB. PEDA facilitated the bid process and ensured that it aligned with the guidelines.
The competitive bidding process and subsequent negotiations led to the final tariff being set at ₹2.63 per unit, which is deemed lower than the cost of conventional power procurement. This tariff is expected to result in cost savings for the partner states’ distribution licensees and their consumers.
The petition outlines that BBMB was constituted under the provisions of the Punjab Re-Organization Act, 1966, and operates several hydroelectric projects. These projects’ operational and maintenance costs are shared among the partner states, and the energy generated is distributed in a pre-agreed ratio. The BBMB aims to add solar power to its energy mix to diversify and enhance the sustainability of its energy portfolio.
The BBMB’s petition seeks the Commission’s approval for the tariff discovered through the competitive bidding process, emphasizing its adherence to regulatory guidelines and the economic benefits it offers. The petition highlights the transparent process followed and the strategic negotiations that led to the favorable tariff rate.
As the Commission deliberates on the adoption of the proposed tariff, the detailed submissions and arguments presented by BBMB provide a comprehensive view of the process and its alignment with national energy policies. The decision on this matter will significantly impact the project’s implementation and the broader adoption of renewable energy sources within the partner states.
This process underscores the importance of transparent and competitive bidding in achieving favorable tariffs for renewable energy projects, contributing to sustainable energy goals and economic benefits for the stakeholders involved. The outcome of this petition will serve as a precedent for similar projects in the future, guiding the approach to tariff adoption and project implementation in the renewable energy sector.
Please view the document here for more details.
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