CERC Clears Tariffs for Major Solar Project with Storage
The Central Electricity Regulatory Commission (CERC) has approved the tariffs for the ambitious 1200 MW solar photovoltaic (PV) power project connected to India’s Inter-State Transmission System (ISTS), integrated with 600 MW/1200 MWh of energy storage. This decision is a key step forward in India’s commitment to expanding renewable energy capacity while ensuring grid stability and sustainability.
The project, led by the Solar Energy Corporation of India (SECI), is part of the government’s larger push to accelerate the adoption of green energy. The tariffs were established following a competitive bidding process, which included thorough technical and financial evaluations, alongside a transparent e-reverse auction. The initiative has garnered interest from prominent energy firms, resulting in the selection of successful bidders for the project.However, the tariff approval comes with a critical condition: SECI must secure Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) for the entire 1200 MW capacity. While 500 MW has already been tied up, the remaining capacity still needs to be finalised before full implementation can proceed.
The CERC has mandated that SECI submit copies of these agreements as soon as they are executed.Experts see the integration of energy storage as a pivotal development in the solar project, as it allows for more stable and reliable energy delivery, even when solar generation fluctuates. The energy storage component ensures that power can be stored during periods of surplus generation and released during high-demand periods, improving grid resilience.In a related decision, the CERC also addressed SECI’s request for a trading margin of INR 0.07/kWh. The regulatory body acknowledged this request, but stipulated that SECI must provide appropriate financial security to the solar generators.
This security could include mechanisms like an escrow arrangement or a revolving letter of credit. In the absence of these provisions, the margin was limited to INR 0.02/kWh.
This approval reinforces India’s growing renewable energy infrastructure and the regulatory framework needed to support large-scale solar projects. It also highlights the importance of regulatory compliance and transparency in securing long-term, sustainable energy contracts for the country.
