Regulatory Developments in Renewable Sector April 21, 2025

CERC upholds CTUIL’s revocation of 160 MW wind project connectivity

The Central Electricity Regulatory Commission (CERC) has dismissed Halvad Renewables Private Limited’s petition against the revocation of its 160 MW connectivity at the Gadag-II substation in Karnataka. The order, issued on March 27, 2025, upheld Central Transmission Utility of India Limited’s (CTUIL) action based on non-compliance with the General Network Access (GNA) Regulations, 2022.

Halvad Renewables, a subsidiary of EDF Renewables, had sought to retain its connectivity despite the cancellation of its Letter of Award (LOA) with the Solar Energy Corporation of India (SECI), citing delays in finalising power purchase agreements. The company argued that regulatory uncertainty and investments worth Rs 530 million justified the retention of connectivity. However, CTUIL revoked the grant on August 8, 2024, as Halvad failed to submit the required bank guarantee (Conn-BG3) by the December 2023 deadline.

CERC held that the failure to submit Conn-BG3 breached the GNA Regulations and that CTUIL’s delayed revocation did not exempt Halvad from compliance. The commission also rejected Halvad’s request to switch from the LOA route to the Land Bank Guarantee route, stating that the revocation remained valid. A request for refund of the encashed Rs 5 million Conn-BG1 was also denied, with CERC affirming CTUIL’s action as within regulatory norms.

Petition No: 282/MP/2024, along with IA.No.70/2024 | Read the full order here.

AERC rejects APDCL’s request to raise solar tariff ceiling for 15 MW project

The Assam Electricity Regulatory Commission (AERC) has rejected Assam Power Distribution Company Limited’s (APDCL) proposal to increase the ceiling tariff to Rs 3.92/kWh for a 15 MW solar PV project in Sonitpur district. The directive, issued on April 9, 2025, requires APDCL to identify lower-cost alternatives.

APDCL had failed to attract bidders despite multiple extensions and a revised tariff cap of Rs 3.60/kWh. The project was planned under the Build-Own-Operate model. APDCL cited local constraints such as low solar irradiance, high O&M costs due to small capacity, and logistics in the remote area. It referenced earlier awarded projects at Borsola and Bilasipara with similar tariffs.

The Commission found APDCL’s justification inadequate and emphasized that the proposed tariff—excluding land costs—would place unnecessary burden on consumers. It directed the utility to optimize costs and explore more economical procurement strategies to improve renewable integration without compromising affordability.

Petition No: 14/2024 | Read the full order here.

UPERC directs UPPCL and NHPC to submit bidding details for 1525 MW solar deal

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has directed Uttar Pradesh Power Corporation Ltd. (UPPCL) and NHPC to submit detailed bidding documents related to the procurement of 1525 MW of solar power. The directive was issued in response to Petition No. 2193 of 2025, filed by UPPCL seeking regulatory approval for two agreements with NHPC.

The petition requested approval under Section 86(1)(a) and (b) of the Electricity Act, 2003, and Regulation 15 of the UPERC Conduct of Business Regulations, 2019. UPPCL has executed a Power Sale Agreement (PSA) with NHPC on 7 March 2024 for 1500 MW. This was later amended by a Supplementary Power Sale Agreement (SPSA) on 29 July 2024 to include an additional 25 MW, taking the total to 1525 MW.

During the hearing held on 27 March 2025, UPPCL’s counsel stated that the agreements are part of a tariff-based competitive bidding process, for which the Central Electricity Regulatory Commission (CERC) had adopted tariffs via its order dated 20 March 2025 in Petition No. 366/AT/2024.

The Commission raised specific concerns regarding the bidding framework used for the additional 25 MW. In response, UPPCL sought two weeks to provide detailed submissions along with supporting documents. NHPC’s representative confirmed the CERC’s tariff adoption and agreed to submit relevant documents.

The Commission has directed UPPCL to file all details of the bidding process for the additional capacity. NHPC has also been asked to furnish all related bidding documents. The matter is scheduled for the next hearing on 15 April 2025.

Petition No: 2193 of 2025 | Read the full order here.

UPERC approves 5 MW RTC bagasse power procurement by NIDP at Rs 5.95/kWh

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved NIDP Developers Pvt. Ltd.’s petition to procure 5 MW of round-the-clock (RTC) renewable power generated from bagasse at Rs 5.95 per kWh. The supply will be facilitated by Kreate Energy (I) Pvt. Ltd., sourcing power from Balrampur Chini Mills, for the period from May 1 to July 31, 2025.

The tariff was discovered through a competitive bidding process conducted via the Ministry of Power’s DEEP portal, in line with short-term bidding guidelines. NIDP received bids from three qualified suppliers, with Kreate Energy’s bid selected as the most competitive. The approved rate is notably lower than recent short-term renewable tariffs ranging from Rs 6.50 to Rs 9.50 per kWh.

The procurement supports NIDP’s non-solar Renewable Purchase Obligation (RPO) targets. To manage demand fluctuations, UPERC also allowed NIDP to procure up to 2 MW from power exchanges via traders, with a cap of 2 paise per unit on trading margins.

UPERC invoked Section 63 of the Electricity Act, 2003 for tariff adoption and advised NIDP to explore medium and long-term procurement options for cost stability and continued RPO compliance.

Petition No: 2204 of 2025 | Read the full order here.

GERC approves Rs 3.73 lakh/MW/month tariff for 250 MW BESS in Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of Rs 3.73 lakh per MW per month discovered by Gujarat Urja Vikas Nigam Limited (GUVNL) for procuring 250 MW/500 MWh of standalone battery energy storage systems (BESS) under Phase-III of its competitive bidding. The order, dated April 3, 2025, was issued under Section 63 of the Electricity Act, 2003.

Gensol Engineering Limited emerged as the lowest bidder (L1) at a tariff 17% lower than Phase-II rates, marking it as the most competitive BESS rate in India so far. The Commission noted that the bidding process was transparent, with 14 participants submitting a combined 1,970 MW for the 250 MW tender.

However, GERC deferred approval for an additional 250 MW capacity under the Greenshoe option. It found that Gensol’s net worth of Rs 343.67 crore fell short of the Rs 370 crore required to qualify for a total 500 MW award.

The BESS project is to be located at GETCO’s 400 kV Charal (Sanand) substation and contributes to Gujarat’s Energy Storage Obligation (ESO) target of 1.5% renewable energy procurement linked to storage by FY 2024–25. GUVNL has been directed to execute the Battery Energy Storage Purchase Agreement (BESPA) and file compliance reports on safety and technical norms.

Petition No: 2371 of 2024 | Read the full order here.

GERC approves tariff for 154 MW solar projects under PM-KUSUM scheme

The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs for 86 feeder-level solar power plants totaling 154 MW under the PM-KUSUM Component-C scheme. The petition, filed by Uttar Gujarat Vij Company Limited (UGVCL), sought approval under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003.

UGVCL conducted a tariff-based competitive bidding process through RfS No. UGVCL/Project/Solar/PM-KUSUM-C/FLS/TN-111 dated February 23, 2024. The bidding was for solarizing various 11 kV feeders via the RESCO model. The bidding process was carried out in compliance with guidelines issued by the Ministry of New and Renewable Energy (MNRE), Government of India.

The Commission approved the tariffs discovered through the transparent bidding process, which ranged from Rs 2.12 to Rs 3.00 per kWh. It also approved the draft Power Purchase Agreements (PPAs) to be executed between UGVCL and the successful bidders for a term of 25 years. A total of 86 projects were awarded, and Letters of Award (LoAs) were issued accordingly.

The sanctioned capacity will support the solarization of agricultural feeders as per the MNRE’s feeder-level solarization guidelines. The plants will be located within a five-kilometer radius of the respective substations and connected via 11 kV lines. Performance Bank Guarantees of Rs 5 lakh per MW are mandated, and the scheduled commercial operation date is either 12 months from the LoA or by December 19, 2025, whichever is earlier.

GERC found the petition within its jurisdiction and held that the discovered tariffs met the criteria outlined under Section 63 of the Electricity Act. 

Petition No: 2399 of 2024 | Read the full order here.

GERC approves tariff for 276 MW solar projects under PM-KUSUM scheme in PGVCL region

The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs for 125 solar power plants with a total capacity of 276 MW under the PM-KUSUM Component-C scheme. The petition was filed by Paschim Gujarat Vij Company Limited (PGVCL) under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003, seeking approval for the tariffs discovered through competitive bidding via RfS No. PGVCL/Project/DSM/PM-KUSUM-C-FLS/TN-10 dated February 29, 2024.

The approved solar plants are intended for feeder-level solarization of various 11 kV feeders under the RESCO model. Tariffs quoted by selected bidders ranged between Rs 2.13 and Rs 3.00 per kWh. The Commission also approved the draft Power Purchase Agreements (PPAs) to be signed between PGVCL and the respective successful bidders for a period of 25 years.

The Commission verified that the bidding process was conducted transparently in accordance with the guidelines issued by the Ministry of New and Renewable Energy (MNRE). The bidding was held for 192 solar plants under 66 kV substations, covering 907 agricultural feeders and 165,185 grid-connected agricultural consumers with contracted loads up to 7.5 HP.

The sanctioned solar projects are part of the MNRE’s initiative to promote decentralized renewable energy by supplying solar power directly to agricultural feeders. This is expected to reduce reliance on conventional power sources and improve power quality in rural areas.

The order confirms that the discovered tariffs are acceptable under the Electricity Act provisions, and PGVCL is authorized to issue Letters of Award (LoAs) and proceed with execution of PPAs. The scheduled commercial operation date is set within 12 months from the date of LoA or by December 19, 2025, whichever is earlier.

Petition No: 2398 of 2024 | Read the full order here.

GERC approves tariff for 76 MW solar projects under PM-KUSUM scheme in MGVCL area

The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs for 33 solar power plants with a total capacity of 76 MW under the PM-KUSUM Component-C scheme. The petition was filed by Madhya Gujarat Vij Company Limited (MGVCL) under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003, for tariff adoption discovered through competitive bidding via RfS No. MGVCL/Project/DSM/PM-KUSUM-C-FLS/TN-07 dated January 3, 2024.

The approved projects will solarize agricultural feeders in MGVCL’s area under the RESCO model. Bidders were selected through a reverse auction, with tariffs ranging from Rs 2.15 to Rs 3.00 per kWh. The Commission also approved the execution of 25-year Power Purchase Agreements (PPAs) with successful bidders based on these tariffs.

The tender covered 80 solar plants at 66 kV substations, aiming to solarize 260 agricultural feeders and benefit approximately 99,740 grid-connected consumers with contracted loads up to 7.5 HP. A total of 121 bids from 34 bidders across 39 plants qualified for price evaluation. Of these, 28 plants underwent e-reverse auction, while 11 received single bids.

Following the auction and evaluation, MGVCL issued Letters of Intent (LoIs) to 116 bids, with 105 accepted. Bidders quoting more than Rs 3.00 per kWh were offered counter rates capped at Rs 3.00, in line with approvals for similar tenders by other DISCOMs. Tariffs were accepted where bids met or were negotiated down to this cap.

The Commission found the bidding process compliant with MNRE guidelines and transparent under Section 63, thereby approving the discovered tariffs. The scheduled commercial operation date for these projects is within 12 months of LoA issuance or by December 19, 2025, whichever is earlier.

Petition No: 2407 of 2024 | Read the full order here.

GERC approves tariff for 160 MW solar projects under PM-KUSUM scheme in DGVCL area

The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs for 64 solar power plants with a cumulative capacity of 160 MW under the PM-KUSUM Component-C scheme. The petition was filed by Dakshin Gujarat Vij Company Limited (DGVCL) under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003. The solar plants are intended for feeder-level solarization across 11 kV agricultural feeders in the DGVCL region through the RESCO model.

The tariff-based competitive bidding was conducted via RfS No. DGVCL/C&R/DSM/PM-KUSUM-C-FLS/TN-03 dated March 1, 2024. The Commission approved the tariffs discovered through the bidding process, which ranged from Rs 2.25 to Rs 3.00 per kWh. A total of 67 bids covering 201.5 MW were received, of which 64 bids totaling 160 MW were finalized based on accepted Letters of Intent.

The approved draft Power Purchase Agreements (PPAs) will be executed for a duration of 25 years. DGVCL will procure solar power from these plants to serve approximately 89,609 grid-connected agricultural consumers with contracted loads up to 7.5 HP. The scheduled commercial operation date is within 12 months from the date of Letter of Award or by December 19, 2025, whichever is earlier.

The Commission confirmed that the bidding process was conducted transparently in accordance with MNRE guidelines, and the discovered tariffs are acceptable under the provisions of the Electricity Act. The approval is aligned with MNRE’s directive to complete PPA signings by December 31, 2024, to ensure timely commissioning before the scheme’s sunset date of March 31, 2026.

Petition No: 2409 of 2024 | Read the full order here.

For more regulatory updates, read the latest orders covered on Power Peak Digest: Energy Regulatory Updates – Power Peak Digest 

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