The Central Electricity Regulatory Commission (CERC) has approved a tariff of ₹2.60 (~$0.036)/kWh adopted by the National Thermal Power Corporation (NTPC) to sell 600 MW of solar power allocated to SB Energy Six Private Limited to distribution licensees in Bihar and Punjab.
The Commission also asked the contracting parties to agree on the trading margin for long-term transactions mutually. Further, the Commission directed NTPC to intimate the Commission before initiating the bidding process in the future, which it had failed to do in this case.
Earlier, NTPC had filed a petition for the adoption of the tariff for 600 MW solar projects connected to the inter-state transmission system (ISTS) under open category and selected through a competitive bidding process.
In March 2018, NTPC had issued the request for selection for setting up 2,000 MW of ISTS-connected solar projects.
In the e-reverse auction conducted in August 2018, ACME Solar, Shapoorji Pallonji, Azure Power, and SB Energy Six Private Limited were declared the successful bidders. SB Energy Six Private Limited was allotted 600 MW.
NTPC, in its petition, had submitted that it had agreed to sell the entire 600 MW of solar power to distribution licensees at the rate of ₹2.60 (~$0.036)/kWh with a trading margin of ₹0.07 (~$0.0009)/kWh.
Based on the request of the distribution licensees, 300 MW capacity was allocated to Punjab State Power Corporation Limited (PSPCL), 600 MW to North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). In addition to this, 1,100 MW was allocated to the Telangana distribution companies.
Subsequently, NTPC entered the PPAs with the successful bidders, including SB Energy Six Private Limited, which was allocated capacity of 600 MW.