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2026 Supreme(Online)(CERC) 212
CENTRAL ELECTRICITY REGULATORY COMMISSION
Jishnu Barua, Chairperson, Ramesh Babu V., Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
SJVN Limited – Appellant
Versus
Adyant Enersol Private Limited – Respondent
684/AT/2025
For the Appellants/Petitioners: Adarsh Tripathi, Ajitesh Garg
For the Respondents: Vansh Malik
Under Section 63 of the Electricity Act, the Commission must adopt tariffs discovered through a transparent, competitive bidding process that adheres to government guidelines. Any associated trading margins for such long-term contracts are permissible only if the trading licensee maintains a mandatory payment security mechanism.
Headnote:(A) Electricity Act, 2003 - Section 63 - Tariff Based Competitive Bidding for procurement of power - Adoption of tariff - Commission is mandated to adopt tariff if determined through a transparent bidding process in accordance with Central Government guidelines. (Paras 12, 13)
(B) Regulatory Compliance - Evaluation criteria - Adherence to specified guidelines and RfS documents by the intermediary procurer - Requirement of a conformity certificate as proof of transparency and compliance in the bidding process. (Paras 14, 22)
(C) Trading Margin - Regulation 8 and 9 of Trading License Regulations, 2020 - Regulation of trading margin for long-term contracts - Conditionality of payment security mechanism (escrow or letter of credit) for the eligibility to charge the permitted trading margin. (Paras 30-33)
Facts of the case:
The petitioner, acting as an intermediary procurer, conducted a tariff-based competitive bidding process for the procurement of power from wind-solar hybrid power projects. Following a single-stage, two-envelope competitive bidding process and an e-reverse auction, the petitioner identified successful bidders and discovered a uniform tariff. The petitioner subsequently filed a petition before the Commission seeking adoption of this tariff and approval for a trading margin.
Findings of Court:
The commission found that the entire bidding process, including the evaluation of bids and final selection of developers, was conducted in a transparent manner and in strict adherence to the government-issued guidelines and the tender documents. The discovered tariff was deemed reasonable given the competitive nature of the process.
Issues: The main issue was whether the tariff discovered through the competitive bidding process met the requirements of Section 63 of the Act for adoption, and whether the proposed trading margin was in compliance with the relevant trading license regulations.
Ratio Decidendi: The Commission ruled that since the bidding process followed the transparent mechanism mandated by the government guidelines and was supported by a conformity certificate, it is incumbent upon the Commission to adopt the discovered tariff. Furthermore, the approved trading margin is subject to compliance with the stipulated payment security mechanism as per existing trading regulations.
Result: Petition allowed; tariff adopted subject to the formal execution of power purchase and sale agreements.
| Table of Content |
|---|
| 1. transparent competitive bidding process for tariff discovery. (Para 1 , 2 , 3 , 4 , 19 , 20 , 21) |
| 2. commission's mandate under section 63 to adopt discovered tariffs. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 3. tariff adoption based on successful bidding process and compliance. (Para 22 , 23 , 25 , 26 , 27) |
| 4. regulation of trading margins for intermediary procurers. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34) |
IN THE MATTER OF:
Petition under Section 63 of the Electricity Act, 2003 for Adoption of Tariff discovered through Tariff Based Competitive Bidding Process for setting up of 1200 MW ISTS-Connected Wind-Solar Hybrid Power Projects (HYBRID-3) in India under the Bidding Guidelines issued by the Ministry of Power, Govt. of India on 21.08.2023 and its amendments thereof.
And
In the matter of:
SJVN Limited
6th Floor, Tower-1, Office Block, NBCC Complex,
East Kidwai Nagar, New Delhi -110023
... Petitioner
VERSUS
1 Adyant Enersol Private Limited
Plot No 51&52 Phase IV Udyog Vihar
Gurgaon Haryana-122015
2 Gentari Renewables India Utilities 2 Private Limited
Level 6, Emaar - The Palm Square,
Golf Course Extension Road, Sector-66,
Gurgaon-122102, Haryana
3 Juniper Green Energy Private Limited
Plot No. 18, First Floor, Institutional Area,
Sector- 32, Gurugram, Haryana – 122001
4 EG Energy Development Private Limited
5th Floor, Accord Blu, Road No.10, Banjara Hills,
Gaffar Khan Road, Hyderabad India 500034
5 Sunsure Solarpark RJ One Private Limited
1101A-1107, 11th Floor, BPTP Park Centra, Jal Vayu Vihar,
Sector-30, Gurugram-122001, Haryana
…Respondents
Parties Present:
Shri Adarsh Tripathi, Advocate, SVJN
Shri Ajitesh Garg, Advocate, SVJN
Shri Mritunjay Kumar, SVJN
Shri Pramod Behera, SVJN
Shri Vansh Malik, Advocate, AEPL
ORDER
1. The Petitioner, SJVN Limited, has filed the present Petition under Section 63 of the Electricity Act, 2003 (hereinafter referred to as the 'Act') for the adoption of tariff for ISTS Grid connected Wind-Solar Hybrid Power projects (Hybrid-3) of 1200 MW selected through the competitive bidding process as per the “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind-Solar Hybrid Projects” (hereinafter referred to as ‘the Guidelines’) dated 21.08.2023 issued by the Ministry of Power, Government of India and its amendments thereof. The Petitioner has made the following prayers:
A. Admit the present Petition ;
B. Adopt the tariff discovered in the tariff based competitive bid process for the individual power projects as stated in the Table at Para 28 as mentioned hereinabove; and
C. Approve Trading Margin of Rs.0.07/kWh to be paid by the Distribution Companies/Buying Entity(ies) as specified in the Guidelines.
D. Pass such other order (s) as may be deemed fit and proper in the facts and circumstances of the present case.
Submissions of the Petitioner
2. The Petitioner has submitted as under:
a) The present petition is filed for the adoption of the tariff discovered through the Competitive Bidding Process for setting up 1200 MW ISTS-connected Wind-Solar Hybrid Power Projects (Hybrid-3) in India. SJVN has been designated as Intermediary Procurer/Renewable Energy Implementing Agency (REIA) vide Office Memorandum F. No. 283/33/2020- GRID SOLAR dated 24.04.2023 issued by the Ministry of New and Renewable Energy (MNRE). The “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Projects” has been issued by the Ministry of Power vide the Gazette of India Notification No 202 dated 21.08.2023 (hereinafter referred to as “Hybrid Guidelines, 2023”).
b) In consideration of the said guidelines, including subsequent amendments and clarifications, SJVN issued Request for Selection (RfS) No. SJVN/CC-Delhi/REIA/2024/HYBRID-3 dated 28.06.2024 for Setting up of 1200 MW ISTS connected Wind-Solar Hybrid Power Projects in India, and has been further amended, and a clarification was also issued by SJVN i
