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In a recent development, the Solar Energy Corporation of India Limited (SECI) has petitioned for the adoption of tariff rates for 690 MW Wind Power Projects (Tranche-XIV) that are part of the Inter-State Transmission System (ISTS). These projects were selected through a competitive bidding process following the guidelines set by the Ministry of Power, Government of India.
SECI initiated the bidding process on February 20, 2023, by issuing a Request for Selection (RfS) along with draft Power Purchase Agreement (PPA) and Power Sale Agreement (PSA) documents. The bids received totaled 1,540 MW from seven bidders, all of which met the technical criteria. Eventually, six bidders with an aggregate capacity of 1,240 MW were shortlisted for the e-reverse auction held on June 12, 2023.
Following the auction, successful bidders including Green Prairie Energy Private Limited, Apraava Energy Private Limited, and SJVN Green Energy Limited were awarded contracts. SECI signed a PSA with U.P. Power Corporation Limited (UPPCL) for the sale of the entire 690 MW wind power on a long-term basis, with specific tariffs agreed upon.
While SECI has signed PPAs for 500 MW, negotiations are ongoing for the remaining 190 MW with Green Prairie Energy Private Limited. Despite providing a timeframe extension to submit the signed PPA, SECI did not furnish the documentation within the stipulated period.
The Commission, after reviewing SECI’s submissions, adopted the tariff for the 500 MW capacity covered by the signed PPAs, following the bidding process and guidelines. SECI retains the liberty to approach the Commission for tariff adoption concerning the remaining 190 MW once the agreements are finalized.
The process outlined for the bidding and selection of bidders adhered to the government’s bidding guidelines for wind power procurement. The bidding process was certified to have been conducted transparently and in compliance with the relevant guidelines.
Regarding trading margins, SECI agreed to a margin of ₹ 0.07/kWh with the distribution licensees, aligning with trading regulations. In the event SECI fails to provide the required payment security, the trading margin will be adjusted to ₹0.02/kWh, as specified by regulations.
This development marks a significant milestone in India’s renewable energy sector, showcasing the growing adoption of wind power projects through competitive bidding processes. The successful implementation of these initiatives contributes to India’s renewable energy goals and supports the transition towards sustainable energy solutions.
Please view the document here for more details.
