CERC Approves ₹2.15/kWh Tariff For 170 MW Neemuch Solar Project In Madhya Pradesh

The Central Electricity Regulatory Commission (CERC) has approved the tariff adoption for a 170 MW grid-connected solar power project in Madhya Pradesh. In its order dated May 16, 2026, the commission finalized a tariff of INR 2.15 per kilowatt-hour (kWh), which was discovered through a competitive electronic bidding process. The project is part of the larger 500 MW Neemuch Solar Park being developed in the state and represents Unit 3 of the solar park initiative.

The petition seeking tariff approval was jointly filed by Rewa Ultra Mega Solar Limited (RUMSL) and Madhya Pradesh Power Management Company Limited (MPPMCL). RUMSL acted as the solar park developer and authorized representative for the bidding process. The project gained attention because of its earlier setback when the originally selected developer failed to comply with project agreements. Due to this default, the contracts signed earlier with the developer were terminated by the state authorities and Indian Railways in early 2024.

Following the cancellation, RUMSL issued a fresh tender for the project in March 2024. The rebidding process attracted strong participation from major renewable energy companies. Around ten technically qualified bidders participated, including companies such as Tata Power, NTPC Renewable Energy, and Renew Solar Power. After the initial financial bids were evaluated, the lowest quote stood at INR 2.30/kWh.

To further reduce the tariff, RUMSL conducted an electronic reverse auction that lasted nearly 140 minutes and went through 16 rounds of bidding. During the auction process, all participating bidders were assigned pseudonymous identities to maintain transparency and avoid any possibility of market collusion. At the end of the competitive bidding rounds, Waaree Forever Energies Private Limited emerged as the successful bidder by offering the lowest tariff of INR 2.15/kWh.

The company received the official Letter of Award in December 2024. Subsequently, Power Purchase Agreements (PPAs) were signed on February 24, 2025. Under the agreements, the power generated from the project will be supplied to two major procurers. MPPMCL will purchase 308 million units (MUs) of electricity, while Indian Railways, through West Central Railways, will procure 89 MUs of renewable power.

During the review process, CERC examined the complete bidding procedure and confirmed that it fully complied with the competitive bidding guidelines issued by the Ministry of Power. The commission also noted that the Government of Madhya Pradesh had approved certain procedural relaxations before the bidding process to improve the project’s financial viability and bankability.

The approval of this tariff is expected to support renewable energy growth in central India and contribute to the country’s target of achieving 500 GW of renewable energy capacity by 2030. State authorities highlighted that the discovered tariff is lower than many conventional power procurement rates, which will help provide affordable green electricity while supporting Renewable Purchase Obligation targets and supplying clean energy to the railway network.