The Kerala State Electricity Regulatory Commission (KSERC) has rejected a petition filed by the Cochin Port Authority (CoPA) seeking approval for the adoption of a tariff of ₹4.75 per unit for a proposed 1.5 MW floating solar power project at Willingdon Island in Kochi. The Commission issued its order on June 3, 2026, after considering objections raised by the Kerala State Electricity Board Ltd (KSEBL), which argued that the proposed tariff was significantly higher than prevailing market rates.
CoPA, which functions as a distribution licensee within its port area, had planned the floating solar project as part of its efforts to meet sustainability targets set by the Ministry of Ports, Shipping & Waterways. Under these guidelines, major ports across India are expected to meet 60% of their electricity requirements from renewable energy sources by 2030.
To implement the project, CoPA conducted a competitive bidding process through the Government e-Marketplace (GeM) portal. An earlier tender was cancelled after receiving only a single bid. A fresh bidding process attracted six participants, with M/s Sunshell Power emerging as the lowest bidder. The company quoted a tariff of ₹4.75 per unit and offered a Capacity Utilization Factor (CUF) of 21%. Following the bidding process, CoPA approached KSERC seeking approval of the discovered tariff and the draft Power Purchase Agreement (PPA).
KSEBL opposed the proposal, stating that the tariff was much higher than rates approved for similar projects. It pointed out that the Central Electricity Regulatory Commission (CERC) had approved a tariff of ₹2.68 per unit for NTPC’s floating solar project at Kayamkulam, while KSERC had previously approved a tariff of ₹3.04 per unit for a floating solar project at West Kallada. According to KSEBL, average solar power tariffs in the market are around ₹2.56 per unit, making CoPA’s proposed tariff substantially higher.
The utility also raised operational concerns, noting that CoPA’s electricity demand varies significantly during the day and can fall below 500 kVA during certain periods. This could result in excess solar power being injected into the KSEBL grid, creating operational challenges.
After examining the matter, the Commission agreed with KSEBL’s position. Referring to a Supreme Court judgment, KSERC observed that regulators are required to reject tariffs discovered through competitive bidding if they are not aligned with prevailing market rates. The Commission noted that the proposed tariff of ₹4.75 per unit was around 60% higher than market prices.
KSERC further clarified that CoPA’s renewable energy obligations under Ministry guidelines are different from Renewable Purchase Obligations (RPOs) applicable to distribution licensees. Since CoPA purchases its entire electricity requirement from KSEBL, it benefits from the renewable energy procured by the utility. The Commission noted that KSEBL plans to achieve a 50% renewable energy share by 2030, which would automatically contribute to CoPA’s green energy consumption. For the remaining requirement, the Commission suggested that CoPA could opt for KSEBL’s approved green tariff by paying an additional premium of ₹0.77 per unit.
While allowing CoPA to proceed with the floating solar project using its own funds if it chooses, the Commission made it clear that the project costs cannot be passed on to consumers or included in the regulated distribution asset base.
