CERC Adopts Tariffs for SECI’s 400 MW Solar Projects
The tariff adoption follows a global competitive bidding process initiated by SECI on June 25, 2019. The tender covered 7 GW of inter-State transmission system-connected solar projects linked to 2 GW of annual solar manufacturing capacity, with the objective of expanding solar generation and supporting domestic manufacturing.
Following the bidding process, developers submitted lower tariffs, allowing SECI to enter into power purchase agreements and power sale agreements. CERC had previously adopted tariffs for 8,900 MW in April 2022 and an additional 334 MW in November 2023. The latest petition sought approval for a further 400 MW under the same tender framework.
The first package covers 50 MW developed by Azure Solar. SECI signed the power purchase agreement with the company on January 2, 2026, at Rs. 2.54 per kWh, while the related power sale agreement with Tata Steel was executed on October 17, 2025. The second package involves 350 MW to be developed by Azure Power Fifty-Two, under a power purchase agreement signed on February 3, 2026, at Rs. 2.42 per kWh. Its power sale agreement with the West Bengal distributor was signed on January 9, 2026.
CERC also considered SECI’s proposed trading margin of Rs. 0.07 per kWh. It said the margin for long-term power transactions could be agreed between the trading licensee and seller under applicable regulations, but would be limited to Rs. 0.02 per kWh if SECI did not provide the required financial security, including an escrow mechanism or an irrevocable, unconditional and revolving letter of credit. The commission subsequently disposed of the petition, clearing the procurement and sale arrangements for the additional capacity.