CERC Adopts ₹3.19/kWh Tariff for SJVN’s 1.2 GW Wind-Solar Hybrid Projects

Background and Context

In June 2024, SJVN initiated a tender process to procure 1,200 MW of power from interstate transmission system (ISTS)-connected wind-solar hybrid projects. The tender attracted significant market interest, with 15 bidders collectively offering 3,700 MW of capacity, far exceeding the original requirement. Following a transparent e-reverse auction process, five developers were selected as successful bidders in December 2024, securing the capacity at a uniform tariff of ₹3.19/kWh.

Key Details

The Central Electricity Regulatory Commission (CERC) has now formally adopted this discovered tariff. The Commission’s order mandates that SJVN must now focus on the execution of Power Purchase Agreements (PPAs) with the selected developers and Power Sale Agreements (PSAs) with distribution companies. SJVN has been directed to place copies of these finalized agreements on record. Furthermore, the Commission has authorized a trading margin of ₹0.07/kWh for SJVN, provided that robust payment security mechanisms are established. If these mechanisms are not implemented, the margin will be restricted to ₹0.02/kWh.

SJVN successfully addressed concerns regarding the withdrawal of the Uniform Renewable Energy Tariff mechanism, clarifying that the letters of award issued remain valid and enforceable on a standalone basis. The Commission noted that the bidding process was conducted in full compliance with guidelines, ensuring technical responsiveness and competitive pricing.

What This Means for EPCs and Developers

For EPC contractors and developers, the CERC order is a critical milestone that de-risks the project pipeline. The formal adoption of the tariff removes regulatory ambiguity, allowing developers to move toward financial closure. The uniform tariff of ₹3.19/kWh reflects the current market appetite for hybrid projects, which offer better capacity utilization factors compared to standalone solar or wind assets. Developers should now prioritize the signing of PSAs with discoms, as the Commission’s approval is contingent upon the successful tying up of this capacity.

What Happens Next

SJVN is expected to finalize the PSAs with distribution companies in the coming months. Once these are secured, the formal PPAs with the five successful bidders will be executed. The Commission has explicitly stated that if the awarded capacity does not materialize into signed agreements, SJVN must report the status immediately. Stakeholders should monitor the progress of these agreements, as they will dictate the construction timelines and supply chain procurement schedules for the 1.2 GW capacity.