NHPC Limited filed a petition before the Central Electricity Regulatory Commission (CERC) under Section 63 of the Electricity Act, 2003, seeking the adoption of tariffs for 1,200 MW of firm and dispatchable renewable energy (RE) power from ISTS-connected projects coupled with Energy Storage Systems (ESS). These projects were selected through a competitive bidding process based on the guidelines issued by the Ministry of Power on 9 June 2023. The tender was released on 28 June 2024.
The competitive bidding received five bids, and after technical and financial evaluations, four companies were awarded capacities totaling 1,200 MW. The successful bidders and their allocated capacities and tariffs were: Jevargi Solar Power Pvt. Ltd. (150 MW at ₹4.48/kWh), Juniper Green Energy Pvt. Ltd. (200 MW at ₹4.56/kWh), Avaada Energy Pvt. Ltd. (600 MW at ₹4.56/kWh), and Acme Solar Holdings Ltd. (250 MW at ₹4.56/kWh). Letters of Award (LOAs) were issued to these developers on 30 January 2025. The projects will include solar, wind, and ESS components to ensure peak availability of 90% and capacity utilization of 43%.
NHPC was designated as the Intermediary Procurer/Renewable Energy Implementing Agency (REIA) and will act as a link between the RE developers and the distribution companies (DISCOMs). Once consent is received from DISCOMs, NHPC will sign Power Sale Agreements (PSAs) with them, followed by back-to-back Power Purchase Agreements (PPAs) with the RE generators. The projects are expected to commence operations in 2027-28, within 24 to 30 months from the effective date of the PPA.
The bidding process followed was a single-stage, two-envelope format with an e-reverse auction conducted on 10 December 2024. NHPC ensured transparency and conformity to the guidelines, and this was confirmed through evaluation committee certificates. The Commission observed that the selection process was carried out properly and approved the tariffs quoted by the successful bidders.
According to the bid conditions, successful bidders are required to submit a Performance Bank Guarantee (PBG) calculated based on the rated installed capacity of the solar, wind, and ESS components. For example, Acme Solar’s PBG must include ₹9,42,000 per MW for solar, ₹12,98,000 per MW for wind, and ₹13,64,000 per MW for ESS. Additionally, a success fee of ₹1 lakh per MW plus GST must be paid. PPAs must be executed within 90 days of the LOA issuance, and financial closure must be achieved within 18 months. Full project commissioning is required within 24 to 30 months of the PPA effective date.
The Commission also addressed NHPC’s request to charge a trading margin of ₹0.07/kWh from the DISCOMs. It noted that if an escrow arrangement or irrevocable, unconditional letter of credit is not provided, NHPC cannot charge more than ₹0.02/kWh as per the trading license regulations.
The petition was admitted, and the Commission officially adopted the discovered tariffs. It also directed NHPC to place copies of signed PPAs and PSAs on record once executed and clarified that in case of non-execution, NHPC should update the Commission accordingly.
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