CERC Approves Tariff Adoption For 3000 MW ISTS Solar Projects By NHPC Despite Delays

The Central Electricity Regulatory Commission (CERC) issued an order on 20th March 2025 in the petition, filed by NHPC Limited. The petition was for the adoption of tariffs discovered through a competitive bidding process for 3000 MW of grid-connected solar photovoltaic (PV) projects connected to the Inter-State Transmission System (ISTS). These projects were selected following guidelines issued by the Ministry of Power on 28th July 2023.

NHPC, acting as the intermediary procurer, organized the bidding process and received 16 bids, all of which met the technical criteria. After the technical evaluation, 15 bidders were invited to participate in an e-reverse auction conducted on 6th November 2023. Following this auction, NHPC awarded capacities to eight successful bidders, including Solairedirect Energy, Avaada Energy, Hazel Hybren, Jakson, Sprng Energy, Green Infra Wind Energy, Apraava Energy, and Hinduja Renewables. The final tariffs ranged from ₹2.52 to ₹2.53 per kWh.

NHPC was expected to approach the Commission within 15 days after the auction for tariff adoption, as per the guidelines. However, it filed the petition nearly 10 months later, on 23rd September 2024. NHPC explained the delay was due to difficulties in securing agreements with distribution companies (DISCOMs), which were hesitant to commit to additional solar power because of existing surpluses. After extended negotiations, NHPC secured agreements with Uttar Pradesh Power Corporation Limited (UPPCL) and Maharashtra State Electricity Distribution Company Limited (MSEDCL), allocating 1,525 MW and 1,475 MW of capacity respectively.

During the hearings, some respondents, including Hazel Hybren Private Limited (HHPL) and Green Infra Clean Wind Technology Limited (GICWTL), raised concerns over the delay in filing the petition. HHPL argued that the delay impacted their ability to secure financing and requested an extension in the scheduled commissioning date of their project. They also pointed out changes in customs duties and anti-dumping duties on solar components after their bid submissions, asking the Commission to recognize these as “Change in Law” events, which could potentially affect project costs and timelines.

MSEDCL also expressed concerns that any delays in commissioning might lead to increased transmission charges, which could financially impact them. They sought assurances that they would not bear the burden of any additional costs due to project delays.

The Commission noted NHPC’s compliance with the transparent bidding process as outlined in the guidelines and acknowledged the delay in filing for tariff adoption. Despite this delay, the Commission decided to adopt the discovered tariffs for all the awarded projects. However, it emphasized that NHPC must strictly adhere to the timelines in future processes.

The Commission clarified that issues such as extension of commissioning dates or recognition of Change in Law events would be dealt with separately under the provisions of the Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs). The adopted tariffs, along with the agreed trading margin of ₹0.07/kWh, will be applicable for the entire term of the PPAs and PSAs. The projects are expected to be commissioned by 2026-27.

This decision is a significant step towards enhancing renewable energy capacity in India, contributing to the fulfillment of renewable purchase obligations by state DISCOMs and furthering the country’s commitment to clean energy.