CERC Fixes ₹2.45/kWh Tariff For SJVN’s 1000 MW Rajasthan Solar Project, Allows GST Relief Route

The Central Electricity Regulatory Commission (CERC) has issued an important order on a petition filed by SJVN Green Energy Limited, along with its parent SJVN Limited, regarding a 1000 MW solar power project in Rajasthan. The petition was submitted under Section 63 of the Electricity Act, 2003, seeking approval of usage charges for the project located in the Bikaner district. The project is being developed under Tranche-III of the CPSU Scheme Phase-II.

The solar project was awarded through a competitive bidding process conducted by the Indian Renewable Energy Development Agency Limited. In September 2021, SJVN Limited emerged as the lowest bidder (L1) through an e-reverse auction and secured the entire 1000 MW capacity. The company had quoted a Viability Gap Funding (VGF) of ₹44.72 lakh per MW. As per the bidding documents, the usage charge was fixed at ₹2.45 per kWh.

However, the petitioners later approached the Commission requesting adoption of a higher tariff of ₹2.57 per kWh. They stated that this increase was necessary due to a change in the law. Specifically, the Goods and Services Tax (GST) rate on renewable energy equipment had increased from 5% to 12% after the bidding process was completed. According to the developers, this change had significantly impacted the overall project cost and required adjustments in the usage charges.

During the hearing, SJVN Green Energy Limited informed the Commission that it had already signed Power Usage Agreements (PUAs) with multiple state utilities. These include 200 MW with Uttarakhand Power Corporation Limited, 300 MW with Jammu & Kashmir Power Corporation Limited, and 500 MW with Rajasthan Urja Vikas and IT Services Limited. This showed that the project had already progressed in terms of power allocation and agreements.

After reviewing all submissions, the Commission decided to maintain the originally discovered tariff of ₹2.45 per kWh. It emphasized that the rates discovered through competitive bidding must remain unchanged to protect the transparency and fairness of the process. The Commission observed that allowing post-bid changes in tariff could undermine the integrity of the entire bidding mechanism.

At the same time, the Commission acknowledged the issue raised by the developers regarding the increase in GST. It provided relief by allowing the petitioners to seek compensation separately under the “Change in Law” provisions. SGEL has been given six weeks to file a fresh petition for this purpose.

As an interim arrangement, the Commission has permitted the developers to recover compensation as guided by the Ministry of New and Renewable Energy on a provisional basis. This ensures that the financial burden due to the tax increase can be addressed temporarily while a final decision is pending.

The order balances regulatory discipline with practical relief, allowing the project to move forward without altering the outcome of the competitive bidding process.