CERC Adopts INR 3.12–INR 3.13/kWh Tariffs For 1,200 MW Solar Projects With 3,600 MWh Energy Storage

The Central Electricity Regulatory Commission (CERC) has adopted the tariffs discovered for 1,200 MW of Inter-State Transmission System (ISTS)-connected solar PV projects backed by 600 MW/3,600 MWh of energy storage systems under Tranche-XXI. The order was issued on September 12, 2026, supporting the development of firm and dispatchable renewable power for distribution companies.

The petition was filed by Solar Energy Corporation of India Limited (SECI) under Section 63 of the Electricity Act, 2003. SECI conducted the procurement as the designated Renewable Energy Implementing Agency under the Ministry of Power’s guidelines issued on June 9, 2023. The guidelines provide a framework for procuring round-the-clock renewable energy supported by energy storage.

SECI launched the competitive procurement process on June 19, 2025, through a Request for Selection (RfS). The projects were to be developed under the Build-Own-Operate model, with each megawatt of solar capacity required to be supported by at least 0.5 MW/3 MWh of energy storage capacity.

Following the initial techno-commercial evaluation, 24 developers offering a combined 6,150 MW qualified for the next stage. After financial bid evaluation, 23 eligible bidders participated in the electronic reverse auction conducted on January 9, 2026.

The auction resulted in four developers being selected for the total 1,200 MW capacity. The discovered tariffs ranged between Rs 3.12 and Rs 3.13 per kWh.

Engie Energy India Private Limited was awarded 200 MW at Rs 3.12 per kWh, while NLC India Renewables Limited received the largest allocation of 600 MW at the same tariff. RPIL Power Three Private Limited secured 300 MW at Rs 3.13 per kWh, and Oriana Power Limited was awarded 100 MW at Rs 3.13 per kWh. SECI issued the Letters of Award to the successful developers on January 29, 2026.

During the CERC proceedings, NLC India Renewables supported SECI’s petition and stated that the tariffs had been discovered through a transparent, competitive and non-discriminatory process. SECI also submitted conformity certificates confirming compliance of the tender process with the applicable government guidelines.

After reviewing the tender documents, evaluation reports and other records, the CERC bench comprising Chairperson Jishnu Barua and Members Ramesh Babu V., Harish Dudani and Ravinder Singh Dhillon found that the procurement process complied with the statutory requirements. The Commission subsequently adopted the discovered tariffs for all four successful developers.

CERC also considered SECI’s request for a trading margin of Rs 0.07 per kWh from the buying distribution companies. The Commission clarified that the trading margin may be mutually agreed under long-term power supply contracts. However, if SECI does not maintain specified payment security mechanisms, including an escrow arrangement or an irrevocable revolving letter of credit in favour of project developers, the trading margin will be capped at Rs 0.02 per kWh.

The tariff adoption is subject to execution of the Power Purchase Agreements and Power Sale Agreements. The projects will have a 25-year contractual term and developers are required to achieve full commercial supply within 24 months from the effective date of the agreements.