The Central Electricity Regulatory Commission (CERC) has issued an order adopting the tariffs discovered for 2,100 MW of firm and dispatchable renewable energy (FDRE) capacity. This power will be supplied from renewable energy projects connected to the Inter-State Transmission System (ISTS) and supported by Energy Storage Systems (ESS). The procurement was carried out through a transparent competitive bidding process, with NHPC Limited acting as the intermediary procurer.
The bidding process was launched by NHPC in March 2024 with an initial target of 1,200 MW. To attract more capacity and ensure better utilization of market interest, NHPC later introduced a Greenshoe Option, which allowed an additional 1,200 MW to be allocated. After the completion of the technical and financial evaluation, five developers were selected for the base capacity. In later rounds, the Greenshoe Option was exercised, and another 900 MW was awarded. This brought the total allocated capacity under the tender to 2,100 MW.
Avaada Energy Private Limited emerged as the largest winner in the tender, securing a total of 1,200 MW. This includes 470 MW from the initial allocation and 730 MW through the Greenshoe Option. Essar Renewables Limited was awarded 300 MW, while Hexa Climate Solutions Private Limited received 200 MW, comprising 80 MW from the base capacity and 120 MW under the Greenshoe Option. Juniper Green Energy Private Limited secured a total of 250 MW, including 200 MW from the base allocation and 50 MW through the Greenshoe Option. Serentica Renewables India Private Limited was awarded the remaining 150 MW.
The tariffs discovered through the bidding process ranged from Rs. 4.37 to Rs. 4.38 per kWh. NHPC submitted data to the Commission showing that these tariffs are in line with similar FDRE tenders conducted during the same period, where prices ranged from Rs. 4.25 to Rs. 4.99 per kWh. Based on this comparison and the bidding details, the Commission found the tariffs to be reasonable and market-aligned.
Under Section 63 of the Electricity Act, 2003, CERC is required to adopt tariffs discovered through competitive bidding if the process follows government guidelines and is transparent. After reviewing the records, the Commission stated that it was satisfied with the fairness and transparency of the bidding process conducted by NHPC. CERC also approved NHPC’s trading margin of Rs. 0.07 per kWh, which will be recovered from the buying distribution companies.
This FDRE initiative is seen as an important step toward providing reliable and round-the-clock renewable power to distribution companies. By combining renewable generation with energy storage, the project aims to support peak demand requirements while strengthening grid stability and advancing India’s clean energy transition.
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