CERC Approves Competitive Tariffs For 1.2 GW Solar Projects With Energy Storage Integration

The Central Electricity Regulatory Commission (CERC) has approved the adoption of tariffs for 1,200 MW of solar power projects combined with 600 MW/2,400 MWh Energy Storage Systems (ESS). These projects can be developed anywhere in India and were awarded through a competitive bidding process conducted by SJVN Limited, which acted as the intermediary procurer.

The tender attracted strong interest from the market, reflecting growing confidence in solar-plus-storage projects. A total of 19 bidders participated, submitting proposals for 4,880 MW of capacity, which is more than four times the offered 1,200 MW. After technical evaluation, an e-reverse auction was conducted in May 2025, leading to the selection of six winning companies. The discovered tariffs ranged between ₹3.32 per kWh and ₹3.33 per kWh, indicating competitive pricing despite the inclusion of storage.

Reliance NU Energies Pvt. Ltd. secured the largest share with 350 MW at ₹3.33 per kWh. Jindal India Renewables Energy Ltd. won 300 MW at ₹3.32 per kWh. SAEL Industries Limited, Sembcorp Green Infra Pvt. Ltd., and JBM Renewables Pvt. Ltd. each secured 150 MW at ₹3.32 per kWh, while Fastnote Biofuels Pvt. Ltd. won 100 MW at ₹3.33 per kWh. The allocation shows a balanced participation from both large and emerging players in the renewable energy sector.

SJVN highlighted the competitiveness of these tariffs by comparing them with similar tenders conducted recently. A Solar Energy Corporation of India (SECI) tender in late 2024 for projects with four-hour storage resulted in higher tariffs of around ₹3.52 to ₹3.53 per kWh. On the other hand, a National Hydroelectric Power Corporation (NHPC) tender in January 2025 discovered lower tariffs of ₹3.09 to ₹3.10 per kWh, but that project required only two-hour storage. Since longer storage duration increases project costs, the tariffs discovered in SJVN’s tender are considered reasonable and competitive.

In its order, CERC stated that the bidding process was transparent and conducted in line with the Ministry of Power’s guidelines issued in 2023. These guidelines are aimed at ensuring the supply of firm and dispatchable renewable energy to distribution companies. This is important because traditional solar power generation is intermittent and depends on sunlight availability. By integrating energy storage systems, these projects can supply electricity even during peak demand hours or when solar generation is not available.

The Commission also approved a trading margin for SJVN, which will act as an intermediary between power generators and distribution companies. SJVN will purchase power from the developers and sell it to DISCOMs through Power Sale Agreements. The approved trading margin is ₹0.07 per kWh, but this is subject to the condition that SJVN provides adequate payment security mechanisms such as letters of credit or escrow arrangements. If such security measures are not maintained, the trading margin will be limited to ₹0.02 per kWh, as per existing regulations.

This decision is expected to support the long-term supply of reliable and clean energy across India. It also marks another step toward strengthening the role of energy storage in the country’s renewable energy transition, helping DISCOMs meet their Renewable Purchase Obligations and Storage Power Obligations while improving grid stability.