CERC Approves Tariffs For 1170 MW Wind-Solar Hybrid Projects Under NTPC’s Competitive Bidding Process

NTPC Limited filed a petition with the Central Electricity Regulatory Commission (CERC) seeking the adoption of tariffs discovered through a competitive bidding process for 1,200 MW of Inter-State Transmission System (ISTS)-connected wind-solar hybrid power projects. The petition was filed under Section 63 of the Electricity Act, 2003. The bidding process was conducted following the Ministry of Power’s guidelines dated 21 August 2023 for procurement of power from grid-connected hybrid projects.

NTPC invited bids on 30 June 2024 and received eight valid submissions. Technical bids were opened on 20 September 2024, and financial bids were opened on 22 October 2024. An e-reverse auction was held on 23 October 2024, resulting in the selection of four companies for a total of 1170 MW capacity. The winning bidders and their tariffs were: Green Prairie Energy III Pvt. Ltd. (200 MW at ₹3.28/kWh), Adyant Enersol Pvt. Ltd. (70 MW at ₹3.28/kWh), Sembcorp Green Infra Pvt. Ltd. (300 MW at ₹3.29/kWh), and Adani Renewable Energy Holding Twelve Ltd. (600 MW at ₹3.29/kWh). Letters of Award (LOAs) were issued to these bidders on 25 November 2024.

The selected projects are to be commissioned anywhere in India and will include both wind and solar components. For example, Green Prairie’s 200 MW project includes 140 MW of solar and 66 MW of wind capacity. The Scheduled Commencement of Supply Date (SCSD) is within 24 months from the effective date of the Power Purchase Agreement (PPA). The PPAs will be valid for 25 years.

As per the Request for Selection (RfS) guidelines, the selected bidders must furnish a Performance Bank Guarantee (PBG) of ₹29 lakh per MW before signing the PPA. For Green Prairie’s 200 MW project, the total PBG amounts to ₹58 crore. Bidders are also required to pay a success charge of ₹1 lakh per MW plus 18% GST to NTPC. Additionally, the Earnest Money Deposit (EMD) must be valid for 90 days beyond the PBG date.

The bidding and evaluation process was overseen by a Standing Tender Committee formed on 8 March 2024. This committee confirmed that the process was transparent and aligned with the Ministry of Power’s hybrid bidding guidelines. NTPC acted as the intermediary procurer, responsible for signing back-to-back PPAs with developers and Power Sale Agreements (PSAs) with distribution licensees.

CERC, in its order dated 19 June 2025, approved the tariffs and adopted them under Section 63 of the Act. However, it noted that NTPC must tie up the awarded capacity under the PPAs and PSAs, and submit copies to the Commission. In case such agreements are not executed, NTPC must also inform the Commission accordingly.

CERC also addressed NTPC’s request to charge a trading margin of ₹0.07/kWh. It ruled that this would only be permissible if NTPC provided either an escrow mechanism or an irrevocable, unconditional, and revolving letter of credit. Without these, the trading margin is capped at ₹0.02/kWh as per the Trading License Regulations. This order concludes the Petition.