The Central Electricity Regulatory Commission (CERC) has approved the tariffs discovered through a competitive bidding process conducted by SJVN Limited for the supply of 6000 MWh of assured peak power from renewable energy projects integrated with Energy Storage Systems (ESS). The approval was granted under Section 63 of the Electricity Act, 2003, following a petition filed by SJVN seeking adoption of tariffs for 1500 MW of peak power supply for four hours through ISTS-connected renewable energy projects.
SJVN, acting as a Renewable Energy Implementing Agency (REIA), launched the bidding process in December 2024 using a single-stage, two-envelope e-tender followed by an e-Reverse Auction. The tender received a strong response from developers, with sixteen companies submitting bids for a total capacity of 5260 MW against the required 1500 MW. After the technical evaluation, fifteen bidders qualified for the financial bidding stage, while one bidder was disqualified for not meeting the eligibility requirements.
The e-Reverse Auction concluded in October 2025 and initially resulted in tariffs ranging from ₹6.74 per kWh to ₹6.75 per kWh. Later, Solarcraft Power India 8 Private Limited and ACME Solar Holdings Limited agreed to match the lowest discovered tariff, resulting in a uniform tariff of ₹6.74 per kWh for all selected projects.
The contracts were awarded to four developers. Reliance NU Energies Private Limited secured the largest share with 750 MW, followed by ACME Solar Holdings Limited with 450 MW. Sembcorp Green Infra Private Limited and Solarcraft Power India 8 Private Limited were each awarded 150 MW. All projects were allotted at the uniform tariff of ₹6.74 per kWh.
To support the tariff adoption, SJVN presented a comparative analysis before the Commission. The company highlighted that the discovered tariff is around 21% lower than the benchmark tariff of ₹8.50 per kWh discovered under SECI’s FDRE VI tender. SJVN also pointed out that the tariff is only ₹0.10 per kWh higher than a standalone battery energy storage tender floated by NVVN, despite the absence of any Viability Gap Funding (VGF) support in the present scheme.
SJVN has already secured Power Sale Agreements (PSAs) for 1150 MW of the awarded capacity. This includes agreements for 450 MW with Bihar State Power Holding Company Limited and its distribution companies, and 700 MW with Tamil Nadu Power Distribution Corporation Limited. Discussions are ongoing with other utilities, including Kerala State Electricity Board and BSES Rajdhani, for the remaining 350 MW capacity.
The Commission also approved a trading margin of ₹0.07 per kWh for SJVN, subject to compliance with payment security mechanisms such as letters of credit or escrow arrangements. If these safeguards are not maintained, the allowable trading margin will be reduced to ₹0.02 per kWh. CERC also condoned the delay in filing the petition, noting that the bidding process remained transparent, competitive, and compliant with government guidelines.
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