NTPC Limited submitted a petition for approval of a tariff for the purchase of 3,000 MW of renewable energy from projects connected to the inter-state transmission system. The selection process was conducted through a competitive bidding mechanism under the guidelines issued by the Ministry of Power. The bidding was carried out through an international competitive bidding process followed by an electronic reverse auction.
Several companies participated in the bidding process, with the total bid capacity of all qualified bidders reaching 1,980 MW. After evaluation, a total of 1,530 MW was finalized for allocation. The remaining capacity of 54 MW was offered to the last bidder in the selection process, but the offer was declined. As a result, the final awarded capacity remained at 1,530 MW. The selected companies received letters of award and were expected to enter into agreements for power purchase and sale.
During the hearings, NTPC confirmed that the bidding process was conducted transparently. A certification from the bid evaluation committee was submitted, confirming adherence to regulations and the reasonableness of the discovered tariff. NTPC also provided updates regarding discussions with state utilities and distribution companies for power sale agreements.
The CERC (Central Electricity Regulatory Commission) reviewed the petition and verified compliance with the necessary guidelines. It was satisfied that the bidding process followed a transparent and competitive approach, leading to fair tariff discovery. As a result, the commission approved the tariff, subject to NTPC finalizing agreements with the distribution entities.
NTPC also sought approval for a trading margin of ₹0.07 per kWh. The commission ruled that while the trading margin is generally determined through mutual agreement if NTPC does not provide financial security mechanisms such as an escrow arrangement or an unconditional letter of credit, the trading margin would be limited to ₹0.02 per kWh. With these decisions, the petition was concluded and disposed of.
