CERC Adopts Tariffs For 900 MW Solar Projects Under SECI’s Tranche XI With ₹0.07/kWh Trade Margin

The Central Electricity Regulatory Commission (CERC) issued an order on January 31, 2025, regarding the adoption of tariffs for 900 MW of solar photovoltaic (PV) power projects. The petition was filed by the Solar Energy Corporation of India Limited (SECI) under Section 63 of the Electricity Act, 2003. The projects, part of Tranche XI, are connected to the Inter-State Transmission System (ISTS) and were selected through a competitive bidding process following guidelines issued by the Government of India.

SECI requested the commission to adopt the discovered tariffs, approve a trading margin of ₹0.07 per kWh to be paid by distribution companies, and issue any other necessary orders. The selection process for these projects began with SECI issuing a Request for Selection (RfS) on March 31, 2023. Fourteen bids totaling 5,050 MW were received, of which six bidders were selected after an e-reverse auction on July 21, 2023. Letters of Award were issued on July 28, 2023.

SECI previously filed petitions for tariff adoption for portions of Tranche XI, including 600 MW and 500 MW projects, which were approved in earlier orders. In this petition, SECI confirmed that it had signed power supply agreements (PSAs) for 200 MW with the New Delhi Municipal Council (NDMC) and for 50 MW each with Adani Electricity Mumbai Limited and AEML Seepz Limited. Additionally, SECI signed power purchase agreements (PPAs) on October 4, 2024, and December 10, 2024, with Avaada GJSustainable Private Limited, JGRJ One Solar Private Limited, and ReNew Ushma Energy Private Limited for a total of 300 MW.

During the hearings, SECI emphasized that the competitive bidding process was conducted transparently and in compliance with government guidelines. The commission noted that earlier petitions had already established the legitimacy of the bidding process. Given the importance of timely tariff adoption, the commission approved the tariff for the 300 MW projects tied up under PPAs and PSAs. It also conditionally adopted the tariff for the remaining 600 MW, subject to SECI securing agreements for the balance capacity.

The commission also reviewed the trading margin requested by SECI. Under the Trading Licence Regulations, the trading margin for long-term contracts is mutually decided by the parties. The PSAs with NDMC, Adani Electricity Mumbai Limited, and AEML Seepz Limited include a trading margin of ₹0.07 per kWh, which complies with regulations. However, if SECI fails to provide the required financial security mechanisms, the trading margin will be capped at ₹0.02 per kWh.

With this order, CERC formally adopted the tariffs for the solar projects, ensuring compliance with regulations while allowing SECI to finalize agreements for the remaining capacity. The decision supports the growth of renewable energy by facilitating the integration of competitively priced solar power into India’s electricity grid.