CERC Approves ₹2.69/kWh Tariff For 300 MW ISTS-Connected Solar Project By CESC

The Central Electricity Regulatory Commission (CERC) issued an order on January 31, 2025, regarding the adoption of tariffs for a 300 MW solar power project. The petition was filed by CESC Limited, a power distribution company, under Section 63 of the Electricity Act, 2003. The project comprises 150 MW of base solar PV capacity and an additional 150 MW under a Greenshoe option, meaning the bidder had the option to increase the contracted capacity. The project is connected to the Inter-State Transmission System (ISTS) and was selected through a competitive bidding process conducted as per the guidelines issued by the Ministry of Power, Government of India.

CESC initiated the bidding process on July 26, 2024, issuing a Request for Selection (RfS) along with a draft Power Purchase Agreement (PPA) and Power Sale Agreement (PSA). The project is located in Rajasthan and will supply power to the state of West Bengal to meet its renewable purchase obligation (RPO). Three bids were received, offering a total of 350 MW, and all were found to meet the required technical and commercial criteria. A financial bid evaluation took place on August 23, 2024, followed by an e-reverse auction on August 27, 2024. The final bidder selected was Purvah Green Power Private Limited, which was awarded 150 MW initially and later confirmed an additional 150 MW under the Greenshoe option.

CESC sought CERC’s approval for tariff adoption after the completion of the competitive bidding process. The tariff discovered for both the base and Greenshoe capacity was ₹2.69 per kWh. The company also sought approval for deviations made in the bidding documents, specifically the relaxation of the 50% allocation cap per bidder, which was approved by the West Bengal government before the bidding process began.

During hearings, CESC’s legal representatives argued that since the power will be transmitted from Rajasthan to West Bengal, it qualifies as an inter-state transaction, and therefore, CERC has jurisdiction over the tariff adoption. The company also noted that it had approached the West Bengal Electricity Regulatory Commission (WBERC) separately for approval of the PPA under state regulations. Additionally, there was discussion on whether the “Appropriate Government” for approving deviations should be the state or central government. CESC contended that since the procurement was for distribution within West Bengal, the state government was the appropriate authority to approve deviations.

CERC reviewed the bidding process and confirmed that it was conducted transparently and in line with government guidelines. It also examined market trends and confirmed that the discovered tariff was competitive. The commission acknowledged that CESC had obtained approval from the West Bengal government for deviations but advised that in future tenders allowing projects to be set up anywhere in India, companies should seek approval from the central government.

After considering the submissions, CERC approved the adoption of the discovered tariff of ₹2.69 per kWh for the full 300 MW capacity, including both the base and Greenshoe options. The decision ensures that CESC can proceed with its power procurement and contribute to renewable energy adoption in West Bengal.