The Haryana Electricity Regulatory Commission (HERC) has approved the procurement of 400 MW firm and dispatchable renewable energy (RE) power from NHPC through ISTS-connected projects with energy storage systems. This power will be supplied at a tariff of ₹4.44/kWh, which includes a trading margin of ₹0.07/kWh, for a period of 25 years. The petition was filed by the Haryana Power Purchase Centre (HPPC), which aims to meet the state’s growing energy demand and renewable purchase obligations (RPOs).
The power will be sourced from projects developed by Serentica Renewables and Juniper Green Energy. These projects will ensure a minimum capacity utilization factor (CUF) of 70%, with 90% availability during peak hours — defined as two hours in the morning and two hours in the evening daily. To ensure peak hour supply, developers are required to integrate battery energy storage systems (BESS) with a minimum storage capacity of 250 kWh for every 1 MW of contracted power.
The Commission acknowledged the urgency of executing the Power Supply Agreement (PSA) before June 15, 2025, to avail a 50% waiver on interstate transmission system (ISTS) charges. Delays beyond June 30, 2025, would result in the graded imposition of transmission charges, nullifying long-term financial benefits. NHPC initiated a tariff-based competitive bidding process in March 2024 for 1200 MW of RE power with an additional green shoe option of 1200 MW. The discovered tariff was considered competitive compared to other similar bids.
The Commission noted that the procurement cost was lower than the average power purchase cost for FY 2025–26. Moreover, the plan helps address Haryana’s future power deficits, which are projected to reach up to 3717 MW by 2034–35. The Commission also emphasized that such firm and dispatchable RE power can help reduce dependency on coal and gas-based generation, which is becoming costlier and unreliable due to fuel shortages.
Given the growing importance of renewable power with storage and the state’s obligations to meet rising RPO targets — projected at 43.33% by FY 2029–30 — the approval of this deal is considered strategic. The procurement will also help maintain a stable electricity supply during peak hours and lessen the impact of high market prices during periods of power shortage.
Despite earlier concerns raised by the Commission over the 7 paise trading margin, NHPC clarified that the rate is in line with Ministry of Power guidelines and was upheld by the Appellate Tribunal for Electricity (APTEL). Consequently, the trading margin was accepted.
HERC granted both the source approval and the approval of the draft PSA with NHPC, recognizing the benefits of this long-term RE power procurement for both discoms and consumers in Haryana. The petition was disposed of on June 13, 2025.
