CERC Adopts Tariffs For 960 MW Wind-Solar Hybrid Projects Selected By NHPC Through Competitive Bidding

NHPC Limited submitted a petition to the Central Electricity Regulatory Commission (CERC) for the adoption of tariffs discovered through a competitive bidding process for 960 MW of Inter-State Transmission System (ISTS)-connected wind-solar hybrid power projects across India. The projects were selected through tariff-based Competitive Bidding (TBCB) as per guidelines issued by the Ministry of Power on 21 August 2023. NHPC was appointed as the Intermediary Procurer and Renewable Energy Implementing Agency (REIA) for the bidding process.

The Request for Selection (RfS) was issued on 31 October 2023 with the bid submission deadline eventually extended to 27 December 2023. Three bids were received and technically qualified. The financial bids were opened on 7 February 2024, and an e-reverse auction was held on 13 February 2024. Following this, Letters of Award (LoAs) were issued on 19 February 2024 to three successful bidders: Juniper Green Energy (150 MW at ₹3.48/kWh), Energizent Power (300 MW at ₹3.49/kWh), and Avaada Energy (510 MW at ₹3.49/kWh), making up the total awarded capacity of 960 MW.

The awarded developers are required to submit a Performance Bank Guarantee (PBG) of ₹34.65 lakh per MW. Additionally, they must pay success charges of ₹1 lakh per MW plus 18% GST. The Power Purchase Agreements (PPAs) must be signed within 90 days of the LoA and will remain valid for 25 years. Financial closure is expected within 18 months from the PPA effective date, while the full commissioning of the projects must be achieved within 24 months. NHPC will sign Power Sale Agreements (PSAs) with distribution companies (DISCOMs) once consent is obtained.

So far, only 88 MW has been tied up with the Department of Power, Nagaland. The West Bengal State Electricity Distribution Company Limited (WBSEDCL) initially consented to 450 MW but later withdrew. The remaining 872 MW is yet to be tied up with DISCOMs. NHPC submitted the petition to CERC on 24 December 2024, later than the 15 days stipulated in the guidelines. NHPC requested condonation of the delay, citing the time required for approvals and compliance with new guidelines.

CERC heard the matter on 19 February 2025 and again on 2 April 2025. The Commission admitted the petition and, on 19 June 2025, adopted the discovered tariffs. It ruled that the adoption of the tariff was following Section 63 of the Electricity Act, 2003 since the bidding process was found to be transparent and compliant with the Ministry’s guidelines.

CERC clarified that while it has adopted the tariffs for all 960 MW, NHPC must tie up the awarded capacity through PPAs and PSAs. If this is not achieved, NHPC must inform the Commission accordingly. NHPC also requested approval to charge a trading margin of ₹0.07/kWh, but CERC stated that without an escrow arrangement or irrevocable letter of credit, the margin cannot exceed ₹0.02/kWh, as per trading license regulations. The petition was disposed of with these directions.