NHPC Limited filed a petition with the Central Electricity Regulatory Commission seeking approval for the adoption of tariffs discovered through competitive bidding for 1,400 MW of firm and dispatchable renewable energy projects with energy storage systems. These projects were selected under guidelines issued by the Ministry of Power in June 2023. NHPC acted as the intermediary procurer in this process, issuing a request for selection for 1,500 MW of renewable energy capacity. However, only 1,400 MW was successfully allocated to six bidders through a reverse auction held in February 2024.
The successful bidders were BN Hybrid Power-1 Private Limited with 120 MW at ₹4.55/kWh, Hero Solar Energy Private Limited with 100 MW at ₹4.63/kWh, Solarcraft Power India 20 Private Limited with 50 MW at ₹4.63/kWh, Juniper Green Energy Private Limited with 200 MW at ₹4.64/kWh, Renew Solar Power Private Limited with 250 MW at ₹4.64/kWh, and ACME Cleantech Solutions Private Limited with 680 MW at ₹4.64/kWh. Letters of award were issued on March 11, 2024, and NHPC sought Commission approval to adopt these tariffs with an added trading margin of ₹0.07/kWh.
Due to a delay in obtaining the necessary consent from distribution companies, NHPC could not submit the petition within the required 15-day window following the reverse auction. The company later received consent from NDMC for 120 MW and UPPCL for 1,280 MW. While Power Sale Agreements (PSAs) and Power Purchase Agreements (PPAs) for the majority of the capacity were signed, the PSA with NDMC was still pending at the time of filing.
The Commission acknowledged that NHPC’s delay was primarily due to the time taken by DISCOMs to evaluate and provide consent. NHPC had also requested the Ministry of New and Renewable Energy to revise the relevant clause in the bidding guidelines, and an amendment was later made, extending the timeline to 30 days for filing such petitions.
The Commission reviewed the entire bidding process, including technical and financial evaluations, and found that it complied with the guidelines. Certificates submitted by NHPC confirmed there were no deviations from the prescribed rules. Consequently, the Commission approved the adoption of the individual tariffs for all six successful bidders.
NHPC’s request to apply a trading margin of ₹0.07/kWh was also considered. The Commission noted that as long as NHPC complies with regulations regarding payment security mechanisms, it can apply this trading margin. Otherwise, the margin must not exceed ₹0.02/kWh, as per trading license regulations.
The Commission concluded by approving NHPC’s petition, subject to the condition that all PPAs and PSAs are executed for the entire allocated capacity. The petition was officially disposed of on May 30, 2025.
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