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The Central Electricity Regulatory Commission (CERC) passed an order in the petition filed by SJVN Limited seeking the adoption of tariffs for its 600 MW Inter-State Transmission System (ISTS)-connected wind power projects in India. The projects were awarded through a competitive bidding process according to the guidelines issued by the Ministry of Power, Government of India, on 26th July 2023.
SJVN Limited issued a Request for Selection (RfS) on 27th March 2024 for the development of these wind power projects on a Build-Own-Operate (BOO) basis. After the completion of the bidding process, Letters of Award were issued to two successful bidders on 20th August 2024. Adyant Enersol Private Limited was awarded 70 MW at a tariff of ₹3.98 per kWh, and UPC Renewables India Management Private Limited was awarded 100 MW at a tariff of ₹3.99 per kWh. The total capacity allocated was 170 MW, out of the originally tendered 600 MW.
The bidding process included several stages, with the last date for bid submission being 27th June 2024. Techno-commercial bids were opened on 3rd July 2024, and the e-reverse auction was conducted on 2nd August 2024. After successful evaluation, Letters of Award were issued to the winning bidders.
As per the guidelines, successful bidders are required to meet financial closure requirements within 18 months from the effective date of the Power Purchase Agreement (PPA). They must also provide success charges of ₹1 lakh per MW plus 18% GST to SJVN within 30 days of the issuance of the Letter of Award or at least seven days before signing the PPA. Additionally, the bidders must submit a Performance Bank Guarantee (PBG) of ₹31.60 lakh per MW before signing the PPA.
CERC reviewed the competitive bidding process to ensure it followed transparency and fairness according to Section 63 of the Electricity Act, 2003. The commission found that the bidding process was conducted in compliance with the guidelines set by the Ministry of Power. As a result, CERC adopted the tariffs of ₹3.98 per kWh and ₹3.99 per kWh for the respective successful bidders.
The commission, however, expressed its dissatisfaction regarding the absence of a conformity certificate from the Evaluation Committee during the petition review. CERC instructed SJVN to ensure full compliance with guidelines in the future.
CERC also addressed the trading margin proposed by SJVN. The petitioner had sought approval for a trading margin of ₹0.07 per kWh as specified in the guidelines. CERC clarified that the trading margin for long-term contracts must comply with the Trading Licence Regulations. In the absence of an escrow arrangement or an irrevocable and unconditional letter of credit from SJVN to the power generators, the trading margin cannot exceed ₹0.02 per kWh.
This petition was disposed of by the CERC bench comprising Chairperson Jishnu Barua, Member Ramesh Babu V., and Member Harish Dudani. SJVN was instructed to provide updates regarding the balance capacity tie-ups under the PPAs and PSAs in the future.
