CERC Approves Rs 2.15 Per kWh Tariff For 170 MW Neemuch Project

22 May 2026 CW Team

An earlier developer default led to contract termination by state authorities and Indian Railways in early 2024. RUMSL issued a fresh tender in March 2024 which attracted around ten technically qualified bidders including Tata Power, NTPC Renewable Energy and Renew Solar Power. The lowest initial quote was Rs 2.30 per kWh and an electronic reverse auction lasting nearly 140 minutes and 16 rounds drove the price to Rs 2.15 per kWh.

Waaree Forever Energies Private Limited was the successful bidder and received the Letter of Award in December 2024. Power purchase agreements (PPAs) were signed on 24 February 2025 under which power will be supplied to two major procurers, with MPPMCL contracting 308 mn units and Indian Railways via West Central Railways contracting 89 mn units. The commission reviewed the bidding process and found it compliant with Ministry of Power competitive bidding guidelines.

The Government of Madhya Pradesh had allowed procedural relaxations to improve project bankability before bidding. The tariff approval is expected to support renewable energy growth in central India and contribute to the national target of achieving 500 GW of renewable capacity by 2030. State authorities emphasised that the discovered tariff is lower than many conventional procurement rates and will aid affordable green electricity and Renewable Purchase Obligation targets.

The Central Electricity Regulatory Commission (CERC) approved the tariff adoption for a 170 megawatt (MW) grid connected solar project in Neemuch, Madhya Pradesh. In an order dated 16 May 2026 the commission finalised a tariff of Rs 2.15 per kilowatt hour (kWh) that was discovered through a competitive electronic bidding process. The project forms Unit three of the larger 500 MW Neemuch Solar Park. The petition was jointly filed by Rewa Ultra Mega Solar Limited (RUMSL) and Madhya Pradesh Power Management Company Limited (MPPMCL), with RUMSL acting as the park developer and authorised representative for bidding. An earlier developer default led to contract termination by state authorities and Indian Railways in early 2024. RUMSL issued a fresh tender in March 2024 which attracted around ten technically qualified bidders including Tata Power, NTPC Renewable Energy and Renew Solar Power. The lowest initial quote was Rs 2.30 per kWh and an electronic reverse auction lasting nearly 140 minutes and 16 rounds drove the price to Rs 2.15 per kWh. Waaree Forever Energies Private Limited was the successful bidder and received the Letter of Award in December 2024. Power purchase agreements (PPAs) were signed on 24 February 2025 under which power will be supplied to two major procurers, with MPPMCL contracting 308 mn units and Indian Railways via West Central Railways contracting 89 mn units. The commission reviewed the bidding process and found it compliant with Ministry of Power competitive bidding guidelines. The Government of Madhya Pradesh had allowed procedural relaxations to improve project bankability before bidding. The tariff approval is expected to support renewable energy growth in central India and contribute to the national target of achieving 500 GW of renewable capacity by 2030. State authorities emphasised that the discovered tariff is lower than many conventional procurement rates and will aid affordable green electricity and Renewable Purchase Obligation targets.

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