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Energy industries

CERC Allows Withdrawal of Petition for Tariff Discovered Through Competitive Bidding

Strategic Insights

— 2 min read

The Central Electricity Regulatory Commission (CERC) has withdrawn a petition filed by the Solar Energy Corporation of India Limited (SECI) seeking approval for the adoption of a tariff discovered through a competitive bidding process. The petition was submitted under Section 63 of the Electricity Act, 2003, and was related to 200 MW of renewable energy projects to be connected to the Inter-State Transmission System (ISTS) under the SECI FDRE VI scheme. The commission agreed to allow the withdrawal of the petition after SECI's legal representatives requested to do so, citing that binding commitments from distribution companies had not yet materialized.

Key Takeaways:

  • The petition was submitted under Section 63 of the Electricity Act, 2003, seeking the Commissions approval for the adoption of a tariff discovered through a competitive bidding process.
  • The bidding process was conducted for a capacity of 200 MW of renewable energy projects, specifically to ensure an assured peak power supply of 800 MWh (200 MW for four hours).
  • SECI had requested the Commission to approve a trading margin of 0.07 per kWh to be paid by the distribution companies or buying entities as specified in the bidding guidelines.
  • The petition was formally admitted by CERC on March 20, 2025, and SECI was directed to provide a conformity certificate to confirm that the tariff rates discovered were in line with prevailing market conditions.
  • SECI submitted an affidavit on May 3, 2025, stating that offers had been made to various state distribution licensees for the purchase of power, but formal confirmations and the execution of Power Sale Agreements (PSAs) were still pending.
  • SECI sought the Commissions permission to withdraw the petition, with the option to file a fresh petition once the PSAs were finalized.
  • During the hearing held on June 8, 2025, SECIs legal representatives repeated their withdrawal request, emphasizing that they would return with a new petition once agreements with the distribution companies were confirmed.
  • The Commission agreed with SECIs request and allowed the petition to be withdrawn, also accepting the request to adjust the filing fee in the future when SECI files a fresh petition regarding the same issue.

Statistics:

  • 200 MW capacity of renewable energy projects were included in the competitive bidding process.
  • 800 MWh of assured peak power supply was the target for the projects to meet.
  • 0.07 per kWh trading margin was requested by SECI to be paid by the distribution companies or buying entities.
  • The petition was formally admitted by CERC on March 20, 2025.
  • May 3, 2025, was the date SECI submitted an affidavit stating that offers had been made to various state distribution licensees for the purchase of power.

Sources:

  • The Central Electricity Regulatory Commission (CERC)
  • Solar Energy Corporation of India Limited (SECI)
  • Electricity Act, 2003, Section 63
  • Ministry of Power
  • Global Data Point (2022)

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