CERC Approves Tariffs For 2.4 GW Wind-Solar Hybrid Projects To Boost India’s Clean Energy Capacity

In a major step toward strengthening clean energy capacity, the Central Electricity Regulatory Commission (CERC) has approved tariffs for 1,200 MW of wind-solar hybrid power projects. The projects were selected through a competitive bidding process conducted by NHPC Limited. Along with the base capacity, an additional 1,200 MW has been awarded under a “Greenshoe Option,” taking the total capacity to 2.4 GW.

NHPC acted as the Intermediary Procurer and Renewable Energy Implementing Agency for this initiative. The tender process was launched in December 2024 to support distribution companies in meeting their Renewable Purchase Obligations. Several major renewable energy developers participated in the bidding, leading to competitive tariff discovery.

After an e-reverse auction conducted in March 2025, the tariffs were finalized at ₹3.41 per kWh for 990 MW and ₹3.42 per kWh for 210 MW under the base allocation. These rates are considered competitive compared to conventional power costs.

The companies that secured projects in the initial 1,200 MW allocation include Adani Renewable Energy Holding Twelve Limited with 600 MW, Sprng Vayu Vidyut Private Limited with 150 MW, Illuminate Hybren Private Limited with 240 MW, and Avaada Energy Private Limited with 210 MW.

In the next stage, the Greenshoe Option was exercised, allowing expansion of capacity without a fresh bidding process. Under this option, Adani Renewable Energy and Avaada Energy were each awarded an additional 600 MW at the lowest discovered tariff of ₹3.41 per kWh. This move effectively doubled the total awarded capacity and is aimed at faster deployment of renewable projects.

During the regulatory review, CERC examined whether the bidding process followed the Ministry of Power’s 2023 guidelines for tariff-based competitive bidding. NHPC clarified that the Greenshoe Option was used to meet renewable energy targets more efficiently and avoid repeating the bidding process for similar projects.

NHPC also informed the Commission that even after adding a trading margin of ₹0.07 per kWh, the discovered tariffs remain lower than the cost of conventional electricity. This is expected to benefit power distribution companies as well as end consumers by reducing overall power procurement costs.

The selected projects are expected to be commissioned within 24 months from the signing of Power Purchase Agreements. This means they are likely to become operational around 2027–28. The PPAs will be valid for a period of 25 years from the scheduled commissioning date.

With CERC formally adopting the tariffs, the projects can now move ahead toward financial closure and execution. This development marks an important milestone in India’s transition toward integrated renewable energy solutions that combine solar and wind power for more reliable and efficient generation.