WBERC Approves Deviations For WBSEDCL’s 2,000 MW Round-The-Clock Renewable Power Procurement

The West Bengal Electricity Regulatory Commission (WBERC) has approved several deviations sought by the West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the procurement of round-the-clock (RTC) renewable energy power. The decision was issued in Case No. OA-579/26-27 and relates to WBSEDCL’s plan to procure 1,500 MW of grid-connected renewable energy RTC power, along with an additional 500 MW green shoe option, through tariff-based competitive bidding.

The procurement is linked to WBSEDCL’s Resource Adequacy Plan submitted to the Central Electricity Authority (CEA). The plan identifies a long-term requirement for continuous green power from the 2028-29 financial year. Under the proposed schedule, Phase I of 1,500 MW is expected to begin supplying power from July 1, 2028, while Phase II of 500 MW is scheduled to commence from April 1, 2029.

The bidding framework requires the selected projects to maintain a minimum annual supply availability of 80%. At least 51% of the supplied power must originate from traceable renewable energy sources. WBERC examined 13 deviations proposed by WBSEDCL from the Ministry of Power’s standard bidding guidelines before issuing its decision.

The Commission approved most of the proposed changes. These included a supply-based approach for determining availability requirements and certain adjustments to the financial eligibility criteria. WBERC also permitted flexibility in bid security arrangements, including the use of Demand Drafts, with the objective of encouraging broader participation from potential bidders.

The regulator further approved a reduced threshold of 50 MW for part-commencement of supply. The provision is intended to provide greater flexibility in meeting near-term power requirements. WBERC also approved changes concerning the timeline for transferring project ownership after commissioning.

However, several major proposals from WBSEDCL were rejected. The Commission declined the request to introduce a composite single-part tariff with annual escalation linked to 30% of the Wholesale Price Index (WPI), instead of the standard four-part tariff structure. WBERC observed that WBSEDCL had not submitted an assessment of the proposed tariff structure’s financial impact on consumers.

The Commission also noted inconsistencies in the draft contract concerning fixed and escalating tariff provisions. As the proposed single-part tariff was not approved, WBSEDCL’s related request to make the first-year single-part tariff the bidding parameter was also rejected.

WBERC additionally rejected proposed changes concerning the early commissioning of isolated project components outside the Power Purchase Agreement. The Commission directed WBSEDCL to follow the original provisions of the applicable bidding guidelines on this matter.

Following the order, WBSEDCL has been directed to revise its draft bidding documents by incorporating only the deviations approved by WBERC. After completion of the competitive bidding process, the distribution company will have to approach the Commission again for adoption of the discovered tariff and final approval of the PPAs.