The Delhi Electricity Regulatory Commission (DERC) has issued a final order dated November 3, 2025, granting in-principle approval to Tata Power Delhi Distribution Limited (TPDDL) for a major renewable energy procurement plan. The approval pertains to TPDDL’s proposal to procure 200 MW of Firm and Dispatchable Renewable Energy (FDRE) integrated with an Energy Storage System (ESS), along with an additional 200 MW greenshoe option. The petition was filed under Section 86 of the Electricity Act, 2003, seeking the Commission’s approval for the bidding documents and associated agreements required to conduct the procurement process.
TPDDL, a licensed power distribution company in Delhi, has been actively working toward meeting its Renewable Purchase Obligation (RPO) targets as mandated by the DERC and the Ministry of Power (MoP). According to the latest MoP trajectory, distribution licensees must ensure that renewable energy accounts for up to 33.01% of total power consumption by the financial year 2025-26. The initiative aligns with India’s larger national goal of achieving 500 GW of installed non-fossil fuel-based energy capacity by 2030. TPDDL highlighted that the addition of energy storage capacity is essential to manage the intermittency of renewable energy sources such as solar and wind and to ensure the supply of firm and reliable power to consumers.
In its assessment, the Commission observed that TPDDL faces a projected shortfall of about 1037 MW in its capacity plan by 2034-35, even after considering the 456 MW capacity already tied up. This total includes the 200 MW of FDRE capacity under the current proposal. The shortfall underlines the need for TPDDL to secure additional renewable energy resources through long-term contracts to meet both future demand and regulatory compliance with RPO norms.
DERC also examined the deviations proposed by TPDDL from the Ministry of Power’s Competitive Bidding Guidelines in its draft Request for Selection (RfS) and Power Purchase Agreement (PPA). The Commission carefully reviewed these deviations to ensure that consumer interests were protected while maintaining a fair and competitive procurement process. Some deviations were approved, while others were rejected.
Among the approved deviations, the Commission permitted TPDDL to remove the restriction that limited any single bidder from being awarded more than 50% of the total bid capacity. DERC stated that this change could encourage participation from developers with larger capacities, potentially driving down tariffs due to greater competition and economies of scale. The Commission also approved TPDDL’s proposal to include stricter penalty clauses against the generator for failure to maintain the minimum Capacity Utilization Factor (CUF). This ensures that TPDDL receives the committed amount of firm power and that generators remain accountable for performance.
However, the Commission rejected several other proposed deviations. These included TPDDL’s request to reduce the compensation payable to the generator in case of TPDDL’s own default, as well as modifications to clauses concerning generation compensation due to grid unavailability. The Commission also declined TPDDL’s proposal to change timelines related to signing the Power Purchase Agreement and the validity of the Performance Bank Guarantee. DERC insisted that such provisions must strictly follow MoP guidelines to maintain transparency, fairness, and bidder confidence in the tendering process.
The Commission granted in-principle approval for TPDDL’s 200 MW FDRE procurement along with the 200 MW greenshoe option through a competitive bidding process. Only the approved deviations will be incorporated, ensuring that the initiative supports Delhi’s renewable energy goals while safeguarding consumer interests and ensuring adherence to national bidding standards.
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