HERC Approves 400 MW Green Power Deal With NHPC At ₹4.44/kWh At Haryana

The Haryana Electricity Regulatory Commission (HERC) has approved a petition filed by the Haryana Power Purchase Centre (HPPC) for the procurement of 400 MW firm and dispatchable renewable energy (RE) power from inter-state transmission system (ISTS) connected RE power projects with energy storage systems through NHPC. This approval includes the source of the power as well as the draft Power Purchase Agreement (PPA), which sets the tariff at ₹4.44 per unit, inclusive of a trading margin of ₹0.07 per unit. The agreement is valid for a period of 25 years.

This initiative is aligned with India’s national target of achieving 500 GW of non-fossil-based installed energy capacity by 2030. The NHPC, acting as an intermediary procurer, initiated a competitive bidding process in March 2024 to select renewable energy developers. Five developers, including Essar Renewables, Serentica Renewables, Juniper Green Energy, Hexa Climate Solutions, and Avaada Energy, were selected under this scheme to provide firm and dispatchable power supported by battery storage systems.

The projects are designed to maintain a minimum capacity utilization factor (CUF) of 70% and must ensure at least 90% power availability during peak hours (5 AM to 10 AM and 6 PM to 11 PM). To meet this requirement, developers are required to install a minimum of 250 kWh of energy storage per MW of contracted capacity. Any shortfall in supply during peak hours or failure to meet annual energy commitments will attract penalties at 1.5 times the applicable tariff.

The HERC noted that the tariff of ₹4.44 per unit is competitive when compared to other recent tenders by NTPC, SECI, and SJVN, where rates ranged from ₹4.48 to ₹4.99 per unit. The power procured through this arrangement will contribute towards fulfilling Haryana’s Renewable Purchase Obligation (RPO), which mandates a share of energy to be sourced from renewable sources, including storage-linked power. The Commission also acknowledged that this procurement would help address the projected power deficits in Haryana, which are expected to range from 1,183 MW in FY 2027-28 to 3717 MW in FY 2034-35.

Timely execution of the PPA by June 2025 is critical, as it would allow HPPC to benefit from a 50% waiver on ISTS transmission charges for 25 years. If delayed, full transmission charges would apply, significantly impacting the financial viability of the contract. NHPC and HPPC emphasized that the trading margin of ₹0.07 per unit, as prescribed by the Ministry of Power guidelines, is non-negotiable and has been upheld by the Appellate Tribunal for Electricity.

The Commission concluded that the proposed power procurement is in the larger interest of consumers and supports the state’s commitment to cleaner and more reliable power. Accordingly, the petition and associated interlocutory application were approved and disposed of on 13 June 2025.