NTPC Limited filed a petition for the adoption of a tariff for the procurement of 1,080 MW from wind-solar hybrid power projects. These projects are connected to the Inter-State Transmission System (ISTS) and were developed as per the guidelines for tariff-based competitive bidding issued by the Ministry of Power, Government of India.
NTPC issued a Request for Selection (RfS) along with the Standard Power Purchase Agreement (PPA) and Power Sale Agreement (PSA) documents on July 19, 2023, for the selection of Hybrid Power Generators (HPGs) to set up 1,500 MW ISTS-connected Wind Solar Hybrid Power Projects. This was advertised on NTPC’s website, the Central Public Procurement Portal, and the Government E-Marketplace portal. In response, five bids were received, offering an aggregate capacity of 1,380 MW, all of which met the techno-commercial criteria.
As the cumulative capacity bid was less than 1,500 MW, NTPC reduced the offered capacity to 80% of the total, resulting in 1,104 MW. A financial bid opening on December 22, 2023, followed by an e-reverse auction on December 27, 2023, finalized the tariffs. On January 11, 2024, NTPC issued a Letter of Award to the successful bidders: Solalite Power Private Limited (300 MW), Sprng Energy Private Limited (250 MW), ACME Cleantech Solutions Private Limited (300 MW), and Juniper Green Energy Limited (230 MW).
NTPC petitioned for the adoption of the tariffs discovered through the competitive bidding process. During a hearing on April 10, 2024, NTPC reiterated its submissions and requested the adoption of the tariff. They explained that delays in filing the petition were due to internal processes requiring approval of e-RA results.
The Commission permitted the respondents to file replies and directed NTPC to submit an affidavit explaining the delay and providing updates on the identification of End Procurers and the signing of PPAs and PSAs. NTPC submitted that the 19-day delay was due to time taken for internal approvals and that discussions with state utilities regarding the sale of power were ongoing.
In a subsequent hearing on May 22, 2024, NTPC confirmed they were in discussions with state utilities and had yet to sign the Power Supply Agreements and Power Purchase Agreements. The Commission directed NTPC to clarify whether the tariff could be adopted without the PPAs and PSAs being signed.
NTPC submitted that the adoption of the tariff and approval of PPAs/PSAs are separate processes, with tariff adoption falling under the jurisdiction of the Central Electricity Regulatory Commission and PPA/PSA approval under the State Commission. They argued that adopting the tariff would facilitate timely project execution and provide regulatory certainty.
The Commission evaluated the process to ensure it adhered to the guidelines and determined that the transparent competitive bidding process had been followed. They found the discovered tariff reasonable and in the public interest. Thus, they adopted the tariff of ₹3.35 per kWh for Solalite Power Private Limited and Sprng Energy Private Limited, and ₹3.36 per kWh for ACME Cleantech Solutions Private Limited and Juniper Green Energy Limited for the procurement of 1,080 MW wind-solar hybrid power projects.
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