CERC Clears Rs.2.60/kWh Tariff for SECI's Solar Projects
POWER & RENEWABLE ENERGY

CERC Clears Rs.2.60/kWh Tariff for SECI's Solar Projects

The Central Electricity Regulatory Commission (CERC) has given its stamp of approval for a tariff of ?2.60 (~$0.03) per kilowatt-hour (kWh) for a combined capacity of 600 megawatts (MW) from solar power projects spearheaded by the Solar Energy Corporation of India Limited (SECI). Additionally, the Commission has endorsed a trading margin of ?0.07 ($0.00084) per kWh.

SECI initiated proceedings under Section 63 of the Electricity Act, 2003, seeking the adoption of tariff for their 600 MW solar power projects, labeled as Tranche-XI, interconnected to the Inter-State Transmission System (ISTS) and selected through a competitive bidding process.

Respondents in the case included SAEL Industries, SAEL Solar MHP1, SAEL Solar MHP2, and Gujarat Urja Vikas Nigam (GUVNL).

SECI's petition also encompassed the approval of a trading margin of ?0.07 (~$0.0084) per kWh, a component that was mutually agreed upon by distribution companies (DISCOMs).

Highlighting the bidding process, SECI revealed that a tender was released on March 31, 2023, alongside a draft power purchase agreement (PPA) and power supply agreement (PSA) for selecting 2,000 MW ISTS-connected solar power projects under Tranche-XI. This led to the selection of six bidders for the entire capacity, with SAEL solar MHP1, SAEL solar MHP2, and GUVNL securing contracts for 600 MW each at ?2.60 (~$0.03)/kWh.

The slated commissioning date for these projects is June 30, 2025. To benefit from a 25-year waiver of ISTS charges, projects must declare commercial operation by this date.

The Commission, after thorough analysis, concluded that the tariff adoption was justified given the transparent and competitive nature of the bidding process, adhering to Ministry of Power guidelines. Consequently, the approved tariffs remain valid throughout the respective periods of the executed PPAs and PSAs.

GUVNL and SAEL Industries expressed no objections to the Commission?s decision.

This move by CERC sets a precedent for transparent bidding processes and tariff approvals in the renewable energy sector. Recently, the Commission's decision regarding the delay in adopting tariff orders by the Uttar Pradesh Power Corporation has highlighted the importance of timely regulatory actions in facilitating renewable energy projects.

The Central Electricity Regulatory Commission (CERC) has given its stamp of approval for a tariff of ?2.60 (~$0.03) per kilowatt-hour (kWh) for a combined capacity of 600 megawatts (MW) from solar power projects spearheaded by the Solar Energy Corporation of India Limited (SECI). Additionally, the Commission has endorsed a trading margin of ?0.07 ($0.00084) per kWh. SECI initiated proceedings under Section 63 of the Electricity Act, 2003, seeking the adoption of tariff for their 600 MW solar power projects, labeled as Tranche-XI, interconnected to the Inter-State Transmission System (ISTS) and selected through a competitive bidding process. Respondents in the case included SAEL Industries, SAEL Solar MHP1, SAEL Solar MHP2, and Gujarat Urja Vikas Nigam (GUVNL). SECI's petition also encompassed the approval of a trading margin of ?0.07 (~$0.0084) per kWh, a component that was mutually agreed upon by distribution companies (DISCOMs). Highlighting the bidding process, SECI revealed that a tender was released on March 31, 2023, alongside a draft power purchase agreement (PPA) and power supply agreement (PSA) for selecting 2,000 MW ISTS-connected solar power projects under Tranche-XI. This led to the selection of six bidders for the entire capacity, with SAEL solar MHP1, SAEL solar MHP2, and GUVNL securing contracts for 600 MW each at ?2.60 (~$0.03)/kWh. The slated commissioning date for these projects is June 30, 2025. To benefit from a 25-year waiver of ISTS charges, projects must declare commercial operation by this date. The Commission, after thorough analysis, concluded that the tariff adoption was justified given the transparent and competitive nature of the bidding process, adhering to Ministry of Power guidelines. Consequently, the approved tariffs remain valid throughout the respective periods of the executed PPAs and PSAs. GUVNL and SAEL Industries expressed no objections to the Commission?s decision. This move by CERC sets a precedent for transparent bidding processes and tariff approvals in the renewable energy sector. Recently, the Commission's decision regarding the delay in adopting tariff orders by the Uttar Pradesh Power Corporation has highlighted the importance of timely regulatory actions in facilitating renewable energy projects.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement