CERC Dismisses NHPC’s Review, Opens Way For Separate Petition On 1,150 MW Greenshoe Solar Capacity

The Central Electricity Regulatory Commission (CERC) has recently issued an order on January 15, 2026, addressing a review petition filed by NHPC Limited regarding solar power tariffs. NHPC had sought a review of a previous CERC order from June 2025, which approved tariffs for 1,200 MW of solar power projects. The company argued that the Commission had inadvertently failed to adopt tariffs for an additional 1,150 MW of capacity identified under a “Greenshoe Option.”

NHPC, acting as a government-designated intermediary procurer, had conducted a competitive bidding process in late 2024 to secure Firm and Dispatchable Power (FDRE) from renewable sources. Following an e-reverse auction, the 1,200 MW base capacity was allocated to four entities: Jevargi Solar Power, Juniper Green Energy, Avaada Energy, and ACME Solar Holdings. Beyond this base allocation, a “Greenshoe” quantum of 1,150 MW was identified for three of the successful bidders at a discovered tariff of Rs 4.48 per unit.

In its review petition, NHPC contended that although the Commission had recognized the existence of these Greenshoe allocations in the original proceedings, it had not formally adopted the associated tariffs. NHPC maintained that this omission was an “error apparent on the face of the record,” which allowed the use of the Commission’s review powers under the Electricity Act, 2003. ACME Solar Holdings supported NHPC’s position, emphasizing that the Greenshoe Option would serve the public interest by increasing the availability of green energy.

However, after examining the petition, the CERC reached a different conclusion. The Commission noted that NHPC’s original prayers in petition No. 87/AT/2025 were specifically limited to the 1,200 MW base capacity. NHPC did not explicitly request the adoption of the Greenshoe Option tariff in its initial submissions or during subsequent hearings. The Commission underscored a fundamental legal principle, stating that a tribunal cannot grant relief that has not been expressly pleaded or prayed for. Since NHPC’s original request was narrowly confined to the base capacity, the Commission found no “patent error” in its June 2025 order and rejected the review petition.

Despite rejecting the petition, CERC recognized the significance of promoting renewable energy development. The Commission allowed NHPC the opportunity to file a fresh, separate petition specifically seeking approval of the 1,150 MW Greenshoe Option. This new petition would be considered independently in accordance with the law. The order was signed by Chairperson Jishnu Barua and Members Ramesh Babu V., Harish Dudani, and Ravinder Singh Dhillon.

The decision highlights the careful approach taken by the Commission in reviewing legal and procedural aspects of tariff approvals. While the Greenshoe Option was not adopted in the review, NHPC can still pursue the capacity under a new petition, ensuring that additional renewable energy can be integrated into the national grid. This step reflects the ongoing effort to support green energy growth while adhering to regulatory processes and legal requirements.

This development is closely watched by industry players as it could affect future solar power procurement strategies and tariff frameworks, particularly for large-scale projects with flexible capacity options like the Greenshoe mechanism.