CERC Adopts ₹3.13/kWh Tariff For 1,940 MW Solar With 2,400 MWh ESS Under NHPC Tranche-XI

The Central Electricity Regulatory Commission (CERC) has issued an order adopting a tariff of ₹3.13 per kWh for the procurement of 1,200 MW of solar power combined with an Energy Storage System (ESS). The petition was filed by NHPC Limited under Section 63 of the Electricity Act, 2003, for projects connected to the Inter-State Transmission System (ISTS). The tender, known as NHPC-Tranche-XI, also included a storage component of 600 MW/2,400 MWh and featured a “Greenshoe Option” to allow additional capacity allocation.

The bidding process saw strong participation, with 15 techno-commercial bids submitted. After a reverse auction conducted on July 15, 2025, five companies emerged as successful bidders, all quoting the same L-1 tariff of ₹3.13 per kWh. The base capacity allocation included 390 MW to Reliance Infrastructure Limited, 300 MW each to PNC Infratech Limited and SAEL Industries Limited, 150 MW to JBM Renewables Pvt. Ltd., and 60 MW to Navayuga Engineering Company Limited.

These projects will be set up across multiple states, such as Rajasthan, Andhra Pradesh, and Telangana. Each project includes a mandatory storage component to ensure a reliable power supply. For instance, Reliance Infrastructure’s 390 MW project will include a storage system of 195 MW/780 MWh, highlighting the focus on integrating storage with renewable energy.

A key feature of this tender is the Greenshoe Option, which allows the procurer to increase capacity at the discovered tariff. While Reliance Infrastructure, JBM Renewables, and PNC Infratech did not opt for additional capacity, SAEL Industries and Navayuga Engineering used this option. SAEL secured an additional 300 MW, while Navayuga Engineering was allocated 440 MW in two rounds. This increased the total awarded capacity under the tender to 1,940 MW.

CERC, in its order, noted that the entire bidding process was carried out in a transparent manner and followed the guidelines issued by the Ministry of Power in 2023. These guidelines are designed to promote firm and dispatchable renewable energy, helping distribution companies meet their Storage Power Obligations.

Under this arrangement, NHPC will act as an intermediary procurer. It will sign Power Purchase Agreements with the developers and Power Sale Agreements with distribution companies. The commission also approved a trading margin of ₹0.07 per kWh for NHPC, provided it ensures payment security to developers. If such security is not provided, the margin will be limited to ₹0.02 per kWh.

The projects are expected to be commissioned by 2027-28, around 24 months after signing the agreements. This development marks an important step in strengthening grid reliability by combining solar power with large-scale energy storage systems.