DERC Approves 1500 MW Solar PSA Between BRPL And SECI, Includes 750 MW ESS In Delhi

In a key regulatory development on November 24, 2025, the Delhi Electricity Regulatory Commission (DERC) approved a Power Sale Agreement (PSA) between BSES Rajdhani Power Ltd. (BRPL) and the Solar Energy Corporation of India (SECI). The agreement is an important step for Delhi’s renewable energy goals, involving the procurement of 1,500 MW of solar power, including a 750 MW/3,000 MWh Energy Storage System (ESS). The integration of the storage system ensures that power is firm and dispatchable, allowing electricity supply even when solar generation is low, which is crucial for meeting the city’s electricity demand throughout the day.

The PSA, executed on March 13, 2025, was filed for formal approval by BRPL. It falls under SECI’s 2,000 MW ISTS (Inter-State Transmission System) Scheme, Tranche XVII, which follows the Ministry of Power’s competitive bidding guidelines. BRPL stated that the discovered tariff, ranging from ₹3.52 to ₹3.53 per kilowatt-hour (kWh), along with SECI’s trading margin, was competitive and in line with current renewable energy market rates. The utility highlighted that this long-term procurement would help it meet its Renewable Purchase Obligations (RPO) and provide electricity to consumers at reasonable rates.

DERC had previously granted in-principle approval for the signing of the PSA on March 7, 2025, confirming the legitimacy of the process followed by BRPL. The final order accepted the PSA fully. The agreement is supported by Power Purchase Agreements that SECI has signed with four major Solar Power Developers (SPDs): NTPC Renewable Energy Limited (500 MW), Sembcorp Green Infra Private Limited (150 MW), Solarcraft Power India 17 Private Limited (150 MW), and Reliance NU Suntech Private Limited (700 MW). This structure ensures a reliable supply of renewable energy with committed capacity and delivery targets over the duration of the contract.

A significant aspect of the order involved the trading margin proposed by SECI, which was initially up to ₹0.07/kWh. The Commission referred to a related ruling by the Central Electricity Regulatory Commission (CERC) on Petition No. 234/AT/2025. CERC clarified that while the trading margin is typically mutually agreed upon, it would be capped at ₹0.02/kWh if SECI fails to provide financial security, such as an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit, in favor of the power generators.

The DERC’s order formalizes approval of the PSA for 1,500 MW of solar power along with the associated energy storage system. The Commission also instructed both BRPL and SECI to adhere strictly to CERC’s directions regarding the final tariff fixation and applicable trading margin. With the order, the petition has been disposed of, paving the way for full implementation of this significant renewable energy project, which is expected to strengthen Delhi’s clean energy supply and ensure firm, reliable solar power availability for consumers.