CERC Approves ₹3.13/kWh Tariff for NHPC 1.2 GW Solar-Storage
⚡ Quick Read
- What happened: The CERC approved a discovered tariff of ₹3.13/kWh for NHPC’s 1,200 MW solar and 600 MW/2,400 MWh storage project, while partially restricting greenshoe capacity.
- Why it matters: This sets a benchmark for competitive solar-storage tariffs and highlights regulatory scrutiny on greenshoe options in renewable energy bidding.
- Watch: Future NHPC tenders to see how the commission’s stance on greenshoe options influences bidding structures and project capacity scaling.
Background and Context
In a significant development for the Indian renewable energy landscape, the Central Electricity Regulatory Commission (CERC) has officially approved the discovered tariff of ₹3.13/kWh for NHPC’s 1,200 MW interstate transmission system (ISTS)-connected solar projects. These projects are integrated with 600 MW/2,400 MWh of energy storage systems (ESS). The tender, floated by NHPC in March 2025, aimed to bolster grid stability by combining solar generation with large-scale battery storage, targeting deployment across states including Rajasthan, Telangana, Maharashtra, Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh.
Key Details
The bidding process saw intense participation, with 14 entities qualifying for the e-reverse auction out of 15 initial bidders. The successful developers include Reliance Infrastructure (390 MW), PNC Infratech (300 MW), SAEL Industries (300 MW), JBM Renewables (150 MW), and Navayuga Engineering (60 MW). Additionally, the CERC approved a trading margin of ₹0.07/kWh, provided that an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit is maintained for the solar power generators.
A point of contention arose regarding the ‘greenshoe option,’ which allowed for an additional 1,200 MW of capacity. While NHPC argued that this mechanism helped secure competitive rates for additional capacity, the CERC expressed caution. The Commission noted that the greenshoe option lacked explicit regulatory backing under existing bidding guidelines. Consequently, the regulator restricted the additional capacity to 300 MW for SAEL and 60 MW for Navayuga, emphasizing that tariff discovery must remain strictly compliant with Section 63 of the Electricity Act, 2003.
What This Means for EPCs and Developers
For EPC contractors and developers, this order serves as a critical regulatory signal. While the discovered tariff of ₹3.13/kWh is viewed as highly competitive—falling below the recent market range of ₹3.25/kWh to ₹3.49/kWh—the regulatory pushback on greenshoe capacity suggests that future tenders must be structured with greater transparency and adherence to formal guidelines. Developers should factor in potential regulatory delays when planning for capacity expansion via greenshoe options in future bids.
What Happens Next
As the India renewable energy sector continues to scale, the integration of energy storage with solar projects is becoming the new standard for grid-firming. The industry will closely monitor how NHPC and other nodal agencies adapt their tender documentation to align with CERC’s latest observations on competitive bidding. With the government pushing to meet ambitious renewable energy targets, stakeholders must remain vigilant regarding evolving compliance requirements to ensure project bankability and long-term viability in a rapidly maturing market.
📊 Key Data
Below is the summary of the NHPC solar-storage tender approval.
| Issuing Authority | NHPC |
| Capacity/Scope | 1,200 MW Solar + 600 MW/2,400 MWh ESS |
| Technology Type | Solar PV + BESS |
| Project Location | Rajasthan, Telangana, Maharashtra, Karnataka, Gujarat, MP, Andhra Pradesh |
| Tariff Structure | ₹3.13/kWh |
| Trading Margin | ₹0.07/kWh |
| Go/No-Go Signal | 🟢 |
