SECI Secures Approval For 1,500 MW Solar Power Project Tariffs Of ₹2.57-₹2.58/kWh Following Competitive Bidding Process

In this case, Solar Energy Corporation of India Limited (SECI) sought approval for the adoption of tariffs for a 1,500 MW solar power project connected to the Inter-State Transmission System. The project selection was conducted via a competitive bidding process, in line with established guidelines by the Ministry of Power, Government of India.

SECI issued a Request for Selection (RfS) on January 18, 2024, which invited bids for setting up the project. Nine bids were received, offering a total capacity of 2,950 MW, of which seven bidders were shortlisted for the next stage. The e-reverse auction was held on March 15, 2024, and the final tariffs were determined through this transparent bidding process. SECI subsequently issued Letters of Award to five companies: Avaada Energy, ReNew Solar, Engie Energy, SAEL Industries, and NTPC Renewable Energy.

The auction’s results determined that the tariffs for the projects ranged between ₹2.57 and ₹2.58 per unit of electricity, with SECI requesting the Commission to approve the adoption of these tariffs. SECI also asked for approval of a trading margin of ₹0.07 per kilowatt-hour to be charged to the power distribution companies.

During the hearings, SECI’s counsel reiterated the requests made in the petition, emphasizing transparency and compliance with the prescribed guidelines in conducting the bidding process. The Commission, after reviewing the case, confirmed that the process met the required standards and that the tariffs were in line with market trends and consistent with the Request for Selection (RfS) guidelines.

No objections were raised by any of the respondents, and SECI provided a certificate confirming the reasonableness of the prices. SECI also undertook to ensure future compliance with prescribed timelines for filing petitions without waiting for the execution of agreements. Additionally, the Commission examined the trading margin and ruled that it should be in line with existing regulations, allowing for a trading margin as long as necessary security arrangements are in place.

As a result, the Commission adopted the tariffs for the 1,500 MW solar power projects, as proposed by SECI, and confirmed that the trading margin would follow existing regulations. The petition was disposed of accordingly.