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A recent petition filed by the Solar Energy Corporation of India Limited (SECI) under the Electricity Act, 2003, sought the adoption of tariffs for Wind Power Projects (Tranche XII) connected to the Inter-State Transmission System (ISTS). These projects were selected through a competitive bidding process outlined by the Government of India’s guidelines.
SECI, acting as an intermediary agency, initiated the process by issuing a Request for Selection (RfS) along with draft agreements for power purchase and supply. Fifteen bids were received, offering a total capacity of 3,330 MW, all of which met the technical criteria. Subsequently, four bidders offering 1,100 MW were selected through an e-reverse auction.
The commission reviewed whether the tariff determination process followed the guidelines set by the Ministry of Power, Government of India. It was found that SECI adhered to the prescribed procedures, including the publication of the RfS on the government’s e-publishing system, in line with the advisory to publish tenders online rather than in newspapers.
After the technical qualification of bidders, financial bids were opened, and successful bidders were selected. However, the capacity under the power purchase agreements (PPAs) was later adjusted due to the cancellation of a letter of award to one of the bidders.
The commission certified that the bidding process was conducted following the guidelines, with SECI providing conformity certificates to affirm compliance.
As a result, the commission approved the individual tariffs for the wind power projects, as agreed upon by the successful bidders. Additionally, the trading margin of ₹0.07/kWh, agreed upon in the power supply agreements (PSAs), was accepted.
However, it was noted that if SECI fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the wind generators, the trading margin would be limited to ₹0.02/kWh. In conclusion, the petition was disposed of with approval granted for the proposed tariffs and trading margins, contingent upon compliance with payment security mechanisms outlined in the agreements.
