CERC Adopts Tariff For 976 MW ISTS Solar Projects Following NTPC Petition

The Central Electricity Regulatory Commission (CERC) has issued an order dated August 26, 2025, approving the adoption of a tariff for 976 MW of Inter-State Transmission System (ISTS) connected solar photovoltaic projects. This order came after a petition filed by NTPC Limited under Section 63 of the Electricity Act, 2003, seeking approval for tariffs discovered for 1200 MW of solar power projects. The projects were awarded through a transparent competitive bidding process that followed the guidelines issued by the Ministry of Power, Government of India. The Commission’s decision validates that the bidding process was conducted fairly and in line with all regulatory requirements.

Out of the total 1200 MW that were tendered, five bidders were declared successful in the competitive process, securing allocations for 976 MW. The CERC officially adopted the tariffs agreed upon by these bidders, allowing the next stage of project development to move forward. Each company was allotted projects at tariffs that had been discovered in the bidding process, ensuring competitive and transparent pricing for solar energy procurement.

Rays Power Infra Limited secured an allocation of 100 MW, while Sael Industries Limited was allotted a larger capacity of 300 MW. Both companies will develop their projects at an adopted tariff of Rs. 2.50 per kWh. Another participant, Refex Green Power Limited, also emerged successful in the auction with an allocation of 100 MW, matching the same tariff of Rs. 2.50 per kWh. These companies form a major share of the projects awarded at this tariff level, reinforcing the competitiveness of the process.

Two other developers received projects at a marginally higher tariff. ReNew Solar Power Private Limited was awarded 300 MW of solar capacity, and Illuminate Hybren Private Limited secured 176 MW. Both companies agreed to execute their projects at a tariff of Rs. 2.51 per kWh. Together, these two firms represent a significant part of the overall awarded capacity, showing a very narrow spread in discovered tariffs across the winning bids.

With the official adoption of tariffs for 976 MW of projects, the Commission has provided regulatory clearance for these solar power initiatives. This decision is important as it not only confirms that the competitive bidding was conducted as per the Ministry of Power’s guidelines but also signals investor confidence in the fairness and transparency of India’s renewable energy procurement framework. The small variation in tariffs between Rs. 2.50 per kWh and Rs. 2.51 per kWh highlights the maturity and competitiveness of the Indian solar sector, where pricing is stabilizing at low levels, making renewable energy an attractive option for the country’s power mix.

The adoption of these tariffs by the CERC will now pave the way for the development of the allotted projects, adding to India’s growing solar capacity under the inter-state transmission system. The order stands as another step in advancing the renewable energy transition, ensuring competitive pricing, and reinforcing the role of solar energy in meeting India’s future power demand sustainably.