Author: PPD Team Date: 19/03/2025
CERC approves NTPC’s tariff adoption for 1500 MW wind-solar hybrid projects
The Central Electricity Regulatory Commission (CERC) has approved NTPC Limited’s petition for adopting tariffs for procuring 1500 MW from inter-state transmission system-connected wind-solar hybrid power projects. These projects were awarded through a competitive bidding process.
CERC noted that NTPC selected the successful bidders through a transparent bidding process, in accordance with the Ministry of Power’s guidelines. Under Section 63 of the Electricity Act, the commission adopted the individual tariffs for the hybrid power projects, as per the letters of award issued on April 23, 2024. The approval is subject to NTPC securing power purchase agreements (PPA) and power sale agreements (PSA) for the remaining awarded capacity.
The commission further observed that the awarded capacity is yet to be tied up with distribution licensees. Therefore, the trading margin will be determined as per the provisions of the PSAs between NTPC and distribution licensees. Additionally, if NTPC fails to establish an escrow arrangement or provide an irrevocable, unconditional, and revolving letter of credit to the hybrid power generators, the trading margin shall not exceed Rs 0.02 per kWh, as specified in Regulation 8(1)(d) and Regulation 8(1)(f) of the Trading Licence Regulations.
Petition No: 222/AT/2024 | Read the full order here.
DERC approves TPREL’s petition for extension relief on project commissioning
The Delhi Electricity Regulatory Commission (DERC) has approved Tata Power Renewable Energy Limited’s (TPREL) petition seeking relief from the requirement to obtain an extension of the scheduled commissioning date (SCD) from the Ministry of New and Renewable Energy (MNRE). This condition was imposed by an order dated September 3, 2024, in petition no. 32 of 2024. The case relates to the power purchase agreement (PPA) signed on March 7, 2023, between TPREL and Tata Power Delhi Distribution Limited.
DERC observed that despite multiple efforts by TPREL, the extension request is still under process with MNRE. The commission also noted that the power purchase cost for the project has been approved at Rs 3 per unit. Considering these factors, DERC has granted an extension until June 2025. The commission has also allowed TPREL to approach it again if further relief is required.
Petition No: I.A. No. 03/2025 in Petition No. 32/2024 | Read the full order here.
KERC issues discussion paper on tariff norms for rooftop aero turbines
The Karnataka Electricity Regulatory Commission (KERC) has issued a discussion paper on the fixation of norms and determination of tariffs for power procurement from rooftop aero turbines (RAT) with or without solar for the financial year 2025-26.
The commission has proposed key parameters for tariff determination, including a 25-year plant life, a debt-equity ratio of 70:30, and an interest rate of 11.1 per cent on debt. The debt repayment period is set at 13 years. The return on equity is proposed at 14 per cent, while operations and maintenance (O&M) expenses are Rs 791.314 per kW for solar rooftop photovoltaic (SRTPV) systems and Rs 1000 per kW for RAT, with an annual escalation of 5.72 per cent and 5 per cent, respectively. The working capital interest rate is set at 11.5 per cent, and depreciation is proposed at 5.38 per cent.
KERC has invited suggestions, comments, and views from stakeholders and other interested parties on the proposed tariff norms.
Read the full order here.
MERC approves NUPLLP’s tariff adoption and PPA for 3 MW RTC power
The Maharashtra Electricity Regulatory Commission (MERC) has approved Nidar Utilities Panvel LLP’s (NUPLLP) petition for adopting the tariff discovered through competitive bidding and approving the power purchase agreement (PPA) with Vindhyachal Hydro Power Private Limited (VHPPL) for the procurement of 3 MW round-the-clock (RTC) power from February 1, 2025, to January 31, 2029.
MERC found the discovered tariff of Rs 5.25 per kWh reasonable, as it is lower than the recently adopted medium-term tariff of Rs 5.56 per kWh. Recent tariffs on the DEEP portal have ranged from Rs 5.39 to Rs 8.00 per kWh for medium-term RTC power. The commission confirmed that the tariff meets the requirements under Section 63 of the Electricity Act, 2003.
The PPA, signed on December 23, 2024, between NUPLLP and VHPPL, has been deemed compliant with regulatory guidelines. MERC has approved the agreement for the supply of 3 MW RTC power at Rs 5.25 per kWh at the Maharashtra State periphery for four years. NUPLLP must submit the final PPA copy to the commission for records.
Petition No: 6 of 2025 and IA No. 8 of 2025 | Read the full order here.
WBERC approves CESC’s 300 MW solar PPA with HRP Green Power
The West Bengal Electricity Regulatory Commission (WBERC) has approved CESC Limited’s petition for the power purchase agreement (PPA) executed on October 3, 2024, with HRP Green Power Private Limited for procuring 300 MW of solar power.
As per the PPA, CESC will receive a minimum of 772.63 million units (MU) annually, based on a declared cumulative utilization factor (CUF) of 29.4 percent. The commission noted that CESC failed to meet its renewable purchase obligation (RPO) target in FY 2022-23, and this agreement will enhance its renewable energy portfolio.
CESC will procure solar power at a fixed tariff of Rs 2.69 per kWh for 25 years from the scheduled operational date. This rate is lower than WBERC’s approved weighted average power purchase cost of Rs 4.86 per kWh for the eighth control period.
Petition No: PPA-132/2024-25 | 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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