CERC Adopts Tariffs for SECI's 600 MW Hybrid Power Project, Upholds Competitive Bidding Process Under S. 63 Electricity Act - 2025-06-12

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CERC Approves Tariffs for 600 MW Wind-Solar Hybrid Projects, Cites Transparent Bidding Process

New Delhi – The Central Electricity Regulatory Commission (CERC), in a significant order, has adopted the tariffs for 600 MW of Inter-State Transmission System (ISTS) connected Wind-Solar Hybrid Power Projects. The Commission, led by Chairperson Shri Jishnu Barua , found that the tariffs, ranging from ₹3.25 to ₹3.26 per kWh, were discovered through a transparent competitive bidding process conducted by the Solar Energy Corporation of India Limited ( SECI ), in full compliance with government guidelines.

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Case Overview

The petition (No. 242/AT/2025) was filed by SECI under Section 63 of the Electricity Act, 2003. SECI sought the adoption of tariffs for its Wind-Solar Hybrid Power Projects (Tranche-IX) and approval for a trading margin of ₹0.07/kWh. The successful bidders and respondents in the case were Juniper Green Energy Private Limited, ACME Solar Holdings Limited, and Sembcorp Green Infra Private Limited .

The core legal question before the CERC was whether the competitive bidding process conducted by SECI adhered to the "Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Power Projects" issued by the Ministry of Power on August 21, 2023.

Arguments Presented

Petitioner ( SECI ): SECI argued that it had meticulously followed the prescribed guidelines. It detailed the bidding timeline, starting with the Request for Selection (RfS) on June 28, 2024, for an initial 400 MW capacity, later enhanced to 600 MW. Four bidders participated with a cumulative offer of 810 MW. Following a techno-commercial evaluation, all four were shortlisted for an e-reverse auction held on October 1, 2024. This process resulted in the selection of three developers for the total 600 MW capacity.

SECI submitted conformity certificates from its Bid Evaluation Committee, confirming that the process was transparent and the discovered tariffs were "reasonable and consistent with the prevailing market trend."

Respondents (Developers): The successful developers, including ACME Solar Holdings and Juniper Green Energy, supported SECI 's petition. They expressed no objections and urged the Commission to expeditiously adopt the tariffs to move forward with the projects.

Court's Analysis and Legal Principles

The CERC's decision hinged on its mandate under Section 63 of the Electricity Act, 2003 , which states:

"Notwithstanding anything contained in Section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government."

The Commission meticulously reviewed the bidding process, from the issuance of the RfS to the e-reverse auction and the issuance of Letters of Award (LoAs). It noted that the participation of four bidders for a 600 MW tender indicated adequate competition.

A key point of scrutiny was the delay in filing the petition. The tariffs were discovered on October 1, 2024, but the petition was filed on January 15, 2025, well beyond the 15-day limit prescribed in the guidelines. SECI explained this was a precautionary measure due to a separate tariff-related issue with the Punjab State Electricity Regulatory Commission (PSERC) in a different tranche (Tranche VII), which had initially been rejected. SECI waited for that matter to be resolved before proceeding with the Tranche IX filing. While noting the delay, the CERC accepted the justification and chose not to impose penalties, referencing a prior order where it had already issued directions on timely filings.

Pivotal Excerpts from the Judgment

On the validity of the bidding process, the Commission stated:

“In light of the aforesaid discussion, it emerges that the selection of the successful bidders has been done, and the tariff of the Wind-Solar Hybrid Power Projects has been discovered by the Petitioner, SECI , through a transparent process of competitive bidding and in accordance with the Guidelines issued by the Ministry of Power, Government of India. Therefore, in terms of Section 63 of the Act, the Commission adopts the individual tariff...”

Regarding the trading margin, the CERC clarified:

“...in case of failure by SECI to provide an escrow arrangement or irrevocable, unconditional and revolving letter of credit to the hybrid power generators, the trading margin shall be limited to Rs.0.02/kWh as specified in the Regulation 8(1)(d) and Regulation 8(1)(f) of the Trading Licence Regulations.”

Final Decision and Implications

The CERC disposed of the petition with the following key directives:

1. Tariff Adoption: The Commission adopted the tariffs as discovered through the e-reverse auction:

   • Juniper Green Energy Private Limited (150 MW): ₹3.25/kWh
   • ACME Solar Holdings Limited (300 MW): ₹3.25/kWh
   • Sembcorp Green Infra Private Limited (150 MW): ₹3.26/kWh

2. Trading Margin: The trading margin of ₹0.07/kWh was approved, subject to the terms of the Power Sale Agreements (PSAs) and compliance with the Trading Licence Regulations. The margin would be capped at ₹0.02/kWh if SECI fails to provide the requisite payment security mechanisms to the generators.

3. Documentation: SECI was directed to place on record copies of the executed Power Purchase Agreements (PPAs) and PSAs once they are tied-up.

This order reaffirms the sanctity of the competitive bidding process for tariff discovery in the renewable energy sector and provides crucial regulatory certainty for developers, paving the way for the implementation of 600 MW of clean energy capacity.