CERC Rejects SJVN’s Request To Allocate 316 MW Of Unallocated Renewable Energy Capacity

The Central Electricity Regulatory Commission (CERC) delivered its decision on a petition filed by SJVN Limited concerning the allocation of 316 MW of unallocated renewable energy power capacity. The petition, addressed in an order dated December 26, 2025, arose from a competitive bidding process conducted by SJVN to select developers for a total of 1,500 MW of renewable energy projects, which included an additional “Greenshoe Option” of 1,500 MW. Out of the total capacity, 2,368 MW was successfully awarded to seven bidders at tariffs of ₹4.38 per kWh and ₹4.39 per kWh. However, a portion of the additional capacity, amounting to 316 MW, remained unallocated.

SJVN, acting as an intermediary procurer, approached the Commission seeking approval to award this remaining capacity to existing successful bidders who were willing to accept additional allocation at the lowest discovered tariff. The petitioner emphasized that initiating a fresh competitive bidding process for the small remaining capacity would be both time-consuming and costly. SJVN further argued that since there was already demand for the power from various distribution companies, allocating it to the existing bidders would serve public interest and ensure competitive rates.

During the proceedings, M/s ACME Cleantech Solutions, one of the successful bidders, expressed support for SJVN’s request. ACME highlighted that it had already offered to take on more capacity than originally awarded and noted that the bidding documents did not explicitly prevent the allocation of the remaining capacity. The company also stated that the Commission had jurisdiction to approve such an allocation to improve the efficiency of the bidding process.

Despite these arguments, CERC focused its analysis on the scope of its regulatory powers. The Commission referred to previous legal precedents and highlighted that while it has the authority to adopt tariffs discovered through transparent bidding, it must strictly adhere to the guidelines issued by the Central Government. The Commission noted that the bidding documents and guidelines already defined the “Eligible Capacity for Award” based on the bids received.

In its final decision, the Commission rejected SJVN’s request to allocate the remaining 316 MW to existing bidders. The CERC clarified that the petition did not concern the regulation or determination of tariffs, as these had already been adopted in a separate order. It ruled that the request to award the additional capacity was not suitable for invoking its general regulatory powers under the Electricity Act, 2003. Consequently, the Commission held that the petition lacked merit and disposed of it without allowing any allocation of the remaining capacity.

This decision underscores CERC’s strict adherence to existing guidelines and regulatory frameworks when dealing with capacity allocation and tariff matters. While the remaining 316 MW of renewable energy capacity cannot be directly allocated to existing successful bidders, the order also highlights the importance of clear provisions in bidding documents regarding additional or unallocated capacity. The case serves as a reminder for developers and intermediaries to carefully consider all regulatory and procedural aspects in competitive renewable energy procurements, particularly when dealing with additional capacities under options like the “Greenshoe Option.”

SJVN’s petition and the Commission’s decision reflect ongoing challenges in balancing efficiency, public interest, and regulatory compliance in India’s renewable energy sector. The ruling emphasizes that even when market demand exists and bidders are willing, regulatory approvals must operate within the precise powers granted under law. The outcome may influence how future renewable energy auctions and additional capacity allocations are structured and managed in the country.

The order, dated December 26, 2025, thus provides clarity on the limits of CERC’s authority in cases involving leftover capacities from competitive bidding, ensuring that all allocations remain consistent with prescribed guidelines and legal frameworks.