NTPC vs Adani Renewable Energy Holding Twelve Limited

Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content

2026 Supreme(Online)(CERC) 228

CENTRAL ELECTRICITY REGULATORY COMMISSION
Jishnu Barua, Chairperson, Ramesh Babu V., Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
NTPC – Appellant
Versus
Adani Renewable Energy Holding Twelve Limited – Respondent
Petition No. 771/AT/2025

Important Points

Under Section 63 of the Electricity Act, 2003, the Commission is obligated to adopt tariffs discovered through a transparent, competitive bidding process that adheres to government guidelines, provided the rates are reasonable and consistent with prevailing market trends.

Subject

Regulatory Law - Energy and Electricity

Act Referred

Electricity Act, 2003: S.63, S.62
Electricity (Late Payment Surcharge and Related Matters) Rules, 2022
Trading License Regulations, 2020: Reg.8(1)(d), Reg.8(1)(f), Reg.9(10)

Headnote

(A) Electricity Act, 2003 - Section 63 - Determination of tariff by bidding process - Adoption of tariff - Commission is required to adopt tariff if determined through a transparent bidding process in accordance with government guidelines - Procedural compliance with guidelines regarding publication of tender and evaluation by committee is mandatory. (Paras 14, 15, 17)

(B) Regulatory Guidelines - Competitive Bidding Guidelines for procurement of power - Adherence to stipulated timelines for filing petitions for tariff adoption is essential - Deviation or delay must be substantiated by valid, overriding public interest considerations, though such delays should be avoided in future instances to ensure regulatory certainty. (Paras 28, 29, 30)

(C) Trading Margin - Long-term contracts - Trading margin is subject to mutual agreement between parties, provided it adheres to regulatory ceilings in cases where specific payment security instruments like escrow or letters of credit are not provided by the intermediary. (Paras 41, 42, 43, 44)

Facts of the case:
The petitioner sought the adoption of tariffs discovered through a competitive bidding process for the procurement of hybrid power from projects connected to the inter-state transmission system. While the tender included an optional additional capacity clause, the petitioner did not exercise this option due to the pendency of long-term power sale agreements. The petition for tariff adoption was filed with a delay relative to the timeline prescribed by the guidelines, which the petitioner attributed to market complexities and the need to protect public interest against stranded capacity.

Findings of Court:
The commission found the competitive bidding process transparent and in accordance with the notified guidelines. The discovered tariffs were compared with contemporary, similar projects and found to be reasonable and consistent with market trends. The commission accepted the justification for the delay in filing but cautioned the petitioner to strictly adhere to timelines in future proceedings.

Issues: Whether the tariff discovered through the competitive bidding process for hybrid power projects should be adopted under Section 63 of the Act, and whether the proposed trading margin and the deferment of optional capacity allocation are permissible.

Ratio Decidendi: Where a competitive bidding process complies with the relevant government guidelines and the discovered tariff reflects prevailing market conditions, the commission is mandated under Section 63 of the Act to adopt the tariff, even if procedural timelines were missed due to justifiable operational constraints, provided the process remains transparent and equitable.

Result: Petition allowed; tariffs adopted as per identified successful bidders; trading margin approved subject to regulatory compliance with payment security requirements.

Advocates:
For the Appellants/Petitioners: Shikha Ohri, Kartik Sharma
For the Respondents: Rahul Chatwal, Harshit Malik

Table of Content
1. petitioner requests tariff adoption for 1200mw hybrid projects. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. compliance with procedural directions and justification for filing delay. (Para 8 , 9 , 10 , 11)
3. commission authority under section 63 of electricity act. (Para 12 , 13 , 14 , 15 , 16 , 17)
4. details of the competitive bidding process and outcomes. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
5. adoption of market-discovered tariff following established guidelines. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34)
6. interim procedural liberty regarding greenshoe option and future filings. (Para 35 , 36 , 37 , 38 , 39)
7. trading margin approval contingent on contractual payment security arrangements. (Para 40 , 41 , 42 , 43 , 44 , 45 , 46)

IN THE MATTER OF:

Petition under Section 63 of the Electricity Act, 2003 or Adoption of Tariff of 1200 MW Wind-Solar Hybrid Power Projects connected to the Inter-State Transmission System (ISTS) and selected through a competitive bidding process as per the Guidelines dated 21.08.2023 of the Ministry of Power, Government of India, as amended from time to time

AND IN THE MATTER OF:

NTPC Limited

NTPC Bhawan,

Core – 7, Scope Complex,

7, Institutional Area, Lodhi Road,

New Delhi – 110003

…Petitioner

Versus

1. M/s Adani Renewable Energy Holding Twelve Limited

Adani Corporate House, 4 Floor-South Wing, Shantigram

Near Vaishno Devi Circle, S.G. Highway, Khodiyar

Ahmedabad, Gujarat -382421

2. M/s AMPIN Energy Utility Private Limited

309, 3rd Floor, Rectangle One,

Behind the Sheraton Hotel, Saket,

New Delhi, Delhi - 110017

3. M/s Green Prairie Energy IV Private Limited

508, Town Centre II, Andheri-Kurla Road,

Marol, Andheri East, Mumbai-400059

4. M/s JSP Green Private Limited

Plot-2, Institutional Area, Sector 32,

Gurugram, Haryana-122001

5. Adyant Enersol Private Limited

Plot No. 51-52, Phase-IV, Udyog Vihar,

Gurgaon, Haryana – 122015

…. Respondents

Parties present: Ms. Shikha Ohri, Advocate, NTPC

Shri Kartik Sharma, Advocate, NTPC

Shri Rahul Chatwal, Advocate, Adyant Enersol

Shri Harshit Malik, Advocate, Adyant Enersol

आदेश/ ORDER

1. The Petitioner, NTPC Limited (NTPC), has filed the present petition under Section 63 of the Electricity Act, 2003 (the Act) seeking adoption of tariff discovered through a transparent Competitive Bidding Process for procurement of 1200 MW Wind-Solar Hybrid Power Projects with Greenshoe Option of additional capacity up to 600 MW connected to the Inter-State Transmission System (ISTS) under the Greenshoe Option. The said capacity was selected through the tariff-based competitive bidding process in accordance with the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind-Solar Hybrid Projects notified by the Ministry of Power, Government of India, dated 21.08.2023, as amended from time to time (the Competitive Bidding Hybrid Guidelines, 2023).

2. Respondent No. 1, Adani Renewable Energy Holding Twelve Limited, is a wholly owned subsidiary of Adani Green Energy Limited (AGEL), which is part of the Adani Group, one of India’s largest infrastructure and energy conglomerates. Adani Renewable Energy Holding Twelve Limited is undertaking the establishment and development of a 350 MW Wind-Solar Hybrid Power Project comprising 233 MW solar capacity and 117 MW wind capacity. The project has been awarded pursuant to the Letters of Award dated 23.01.2025 issued by the Petitioner, at a discovered tariff of INR 3.38/kWh.

3. Respondent No. 2, AMPIN Energy Utility Private Limited, is undertaking the establishment and development of a 150 MW Wind-Solar Hybrid Power Project comprising 99 MW solar capacity and 51 MW wind capacity. The project has been awarded pursuant to the Letters of Award dated 23.01.2025 issued by the Petitioner, at a discovered tariff of INR 3.44/kWh, under the same bidding process.

4. Respondent No. 3, Green Prairie Energy IV Private Limited, is undertaking the establishment and development of a 200 MW