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The Central Electricity Regulatory Commission (CERC) has issued a landmark order approving tariffs for 600 MW of wind power projects connected to the inter-State Transmission System (ISTS), following a petition filed by SJVN Limited. The move is aimed at supporting India’s renewable energy expansion through transparent and competitive market mechanisms.
SJVN Limited, designated as a Renewable Energy Implementing Agency by the Ministry of New and Renewable Energy, initiated the competitive bidding process in April 2024. The tender was issued under the federal government’s 2023 guidelines for tariff-based competitive bidding, targeting the procurement of 600 MW of wind power across India. However, the market response was modest, with three bidders submitting proposals for a total of 390 MW. After a technical evaluation and an e-reverse auction conducted in January 2025, SJVN awarded a total of 312 MW to two successful companies.
The winning bidders included M/s NLC India Limited and M/s Adyant Enersol Private Limited. NLC India secured 200 MW at a quoted tariff of Rs. 3.74 per kWh, while Adyant Enersol was awarded 112 MW at Rs. 3.81 per kWh. Both projects are planned for a 25-year term, offering long-term renewable energy supply stability to the grid.
During the regulatory proceedings, CERC closely examined whether the bidding process was conducted in a transparent manner and in compliance with Section 63 of the Electricity Act, 2003. SJVN provided a conformity certificate to the Commission, confirming that the competitive bidding was carried out according to regulations and that the resulting tariffs reflected prevailing market trends. Although SJVN is still finalizing Power Sale Agreements (PSAs) with end-users, specifically Bihar Discoms, the Commission approved the tariff adoption to prevent delays in project execution.
A secondary issue in the petition concerned SJVN’s request for a trading margin of Rs. 0.07 per kWh. The Commission clarified that the applicable trading margin would be governed by the Trading License Regulations. If SJVN fails to provide required payment security measures, such as an escrow arrangement or a revolving letter of credit, the trading margin would be limited to Rs. 0.02 per kWh.
This ruling paves the way for the timely implementation of the awarded wind projects, reinforcing India’s commitment to increasing renewable energy capacity while maintaining market-driven transparency. By approving tariffs ahead of finalized PSAs, CERC has removed a potential bottleneck, ensuring that these wind projects can move forward without delay. The projects are expected to contribute significantly to India’s renewable energy targets, supporting a long-term transition toward clean and sustainable power.
With these approvals, SJVN’s wind power initiatives represent a critical step in expanding the country’s renewable energy infrastructure, demonstrating the effectiveness of competitive bidding as a mechanism for achieving affordable and reliable clean energy.
