+
CERC approves tariffs for SECI's 1,200 MW wind projects, recognising GST changes?
ECONOMY & POLICY

CERC approves tariffs for SECI's 1,200 MW wind projects, recognising GST changes?

The Central Electricity Regulatory Commission (CERC) has approved tariffs for SECI's 1,200 MW wind power projects. Tariffs of Rs 2.69 (0.0326)/kWh (450 MW, 120 MW) have been sanctioned, along with a trading margin of Rs 0.07 (~$0.00084)/kWh. This approval applies to wind power projects connected to the interstate transmission system (ISTS) under Tranche-XI to operate on a "build-own-operate" basis.

The Commission recognised the increase in GST rates on renewable energy devices as a Change in Law event following a notification from the Ministry of Finance after July 6, 2021. This recognition entitles wind power developers to appropriate remedies specified in the power purchase agreements (PPAs) due to additional expenditures resulting from the Change in Law event.

SECI had previously filed a petition under Section 63 of the Electricity Act, 2003, seeking tariff adoption for the wind power projects (Tranche-XI) connected to ISTS. SECI requested the adoption of tariffs determined through a competitive bid process, approval of trading margins, and acknowledgement of clauses in PPAs regarding changes in safeguard duty, GST, and primary customs duty rates.

Respondents included ReNew Naveen Urja, Anupavan Renewables, Green Infra Wind Energy, Azure Power, Adani Renewable Energy, Two Wind Energy, Madhya Pradesh Power Management Company, Chhattisgarh State Power Distribution Company, and Uttar Pradesh Power Corporation.

SECI conducted an e-reverse auction on September 9, 2021, and granted a letter of award (LOA) to selected companies on October 21, 2021. The projects are expected to be commissioned in 2023-24, facilitating the meeting of distribution licensees' Renewable Purchase Obligations and providing power at economical rates.

The Commission analysed the case on February 7, 2023, and considered the objections raised by respondents. It noted SECI's amendments post-bid and recognised the increase in GST rates as a Change in Law event, granting wind power developers applicable reliefs.

The Commission emphasised that the present proceedings focus solely on tariff adoption and directed respondents to file separate petitions addressing concerns related to PPAs.

Furthermore, CERC recently permitted a renewable energy developer to claim compensation to counteract the financial impact of Change in Law events due to increased goods and service tax rates.

The Central Electricity Regulatory Commission (CERC) has approved tariffs for SECI's 1,200 MW wind power projects. Tariffs of Rs 2.69 (0.0326)/kWh (450 MW, 120 MW) have been sanctioned, along with a trading margin of Rs 0.07 (~$0.00084)/kWh. This approval applies to wind power projects connected to the interstate transmission system (ISTS) under Tranche-XI to operate on a build-own-operate basis.The Commission recognised the increase in GST rates on renewable energy devices as a Change in Law event following a notification from the Ministry of Finance after July 6, 2021. This recognition entitles wind power developers to appropriate remedies specified in the power purchase agreements (PPAs) due to additional expenditures resulting from the Change in Law event.SECI had previously filed a petition under Section 63 of the Electricity Act, 2003, seeking tariff adoption for the wind power projects (Tranche-XI) connected to ISTS. SECI requested the adoption of tariffs determined through a competitive bid process, approval of trading margins, and acknowledgement of clauses in PPAs regarding changes in safeguard duty, GST, and primary customs duty rates.Respondents included ReNew Naveen Urja, Anupavan Renewables, Green Infra Wind Energy, Azure Power, Adani Renewable Energy, Two Wind Energy, Madhya Pradesh Power Management Company, Chhattisgarh State Power Distribution Company, and Uttar Pradesh Power Corporation.SECI conducted an e-reverse auction on September 9, 2021, and granted a letter of award (LOA) to selected companies on October 21, 2021. The projects are expected to be commissioned in 2023-24, facilitating the meeting of distribution licensees' Renewable Purchase Obligations and providing power at economical rates.The Commission analysed the case on February 7, 2023, and considered the objections raised by respondents. It noted SECI's amendments post-bid and recognised the increase in GST rates as a Change in Law event, granting wind power developers applicable reliefs.The Commission emphasised that the present proceedings focus solely on tariff adoption and directed respondents to file separate petitions addressing concerns related to PPAs.Furthermore, CERC recently permitted a renewable energy developer to claim compensation to counteract the financial impact of Change in Law events due to increased goods and service tax rates.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code