CERC Approves Tariff For 1200 MW Wind-Solar Hybrid Projects Under SECI’s Competitive Bidding

The Central Electricity Regulatory Commission (CERC) issued an order on February 18, 2025, regarding the adoption of tariffs for 1,200 MW Wind-Solar Hybrid Power Projects (Tranche-VIII) connected to the Inter-State Transmission System (ISTS). The petition was filed by the Solar Energy Corporation of India Limited (SECI) under Section 63 of the Electricity Act, 2003, to seek approval for the tariff discovered through a competitive bidding process as per government guidelines issued on August 21, 2023.

SECI issued a Request for Selection (RfS) on February 20, 2024, inviting bids for setting up the 1200 MW hybrid projects. In response, eight bidders offered a total capacity of 2160 MW, all of which met the technical and commercial criteria. The financial bids were opened on June 14, 2024, and six bidders were shortlisted for the e-reverse auction held on the same day. Following this process, SECI awarded Letters of Award (LoAs) on June 20, 2024, to the six selected bidders: Juniper Green Energy, Asurari Renewables, AMPIN Energy Utility, Adyant Enersol, JSW Neo Energy, and Avaada Energy. These bidders secured project capacities ranging from 60 MW to 300 MW at tariffs between ₹3.43 and ₹3.46 per kWh.

During the hearings on September 5, 2024, and October 10, 2024, SECI emphasized that the tariff adoption was in line with the Electricity (Amendment) Rules, 2022, which introduced a Uniform Renewable Energy Tariff (URET). SECI also confirmed that the bidding process followed the prescribed guidelines without any deviations. Additionally, a Bid Evaluation Committee certified that the discovered tariffs were reasonable and consistent with market expectations.

CERC, after reviewing the bidding process and submitting documents, adopted the discovered tariff under Section 63 of the Electricity Act, 2003. The Commission also directed SECI to ensure that the awarded capacity is tied up under Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs). If the awarded capacity fails to materialize, SECI must report the developments to the Commission.

SECI had also requested approval for a trading margin of ₹0.07 per kWh to be charged to the procuring entities. However, CERC stated that the trading margin would be determined as per the provisions of the PSAs to be executed with the distribution companies. If SECI fails to provide an escrow arrangement or an irrevocable letter of credit, the trading margin will be capped at ₹0.02 per kWh, following Trading Licence Regulations.

This decision supports India’s renewable energy transition by promoting wind-solar hybrid projects and ensuring transparent tariff discovery. The implementation of these projects is expected to contribute significantly to the country’s clean energy goals.