The Central Electricity Regulatory Commission (CERC) has approved the adoption of tariffs for 630 MW of firm and dispatchable renewable energy from interstate transmission system (ISTS)-connected projects, as petitioned by the Solar Energy Corporation of India (SECI). The approved tariff falls within the range of Rs 4.98/kWh to Rs 4.99/kWh. In June 2023, SECI initially invited bids for 1,260 MW of firm and dispatchable renewable energy integrated with storage. However, the tender capacity was later reduced to 630 MW in 2024. Following an e-reverse auction, SECI issued letters of award (LOAs) to the successful bidders at tariffs within the approved range. Subsequently, SECI sought regulatory approval for the discovered tariff and a trading margin of Rs 0.07/kWh to be recovered from distribution companies. During the October 2024 hearing, SECI was instructed to provide updates on the execution of power purchase agreements (PPAs) and power supply agreements (PSAs). While the LOAs were issued, BSES Rajdhani Power and BSES Yamuna Power did not execute the PSA, leading SECI to allocate 625 MW of the total 630 MW capacity to other distribution utilities. CERC determined that SECI’s tendering process adhered to transparency, competitiveness, and established guidelines. The Commission confirmed that the discovered tariff was reasonable and duly evaluated by the bid evaluation committee. As a result, CERC formally adopted the tariffs and instructed SECI to submit documentation regarding the awarded capacity under PPAs and PSAs. Additionally, the petitioner was directed to report any capacity that remained untied. The Commission mandated that trading margins should be set as per the PSAs since distribution licensees had not yet formalized agreements. If SECI fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to wind-solar hybrid power generators, the trading margin will be capped at Rs 0.02/kWh. In February, CERC had also approved SECI’s petition to adopt a tariff of Rs 2.6/kWh for 900 MW of ISTS-connected solar power projects under Tranche-XI. News source: Mercom India