The Central Electricity Regulatory Commission (CERC) has adopted a tariff of ₹6.74 (~$0.078)/kWh for 1,500 MW of assured peak power capacity to be procured by SJVN from interstate transmission system (ISTS)-connected renewable energy projects coupled with energy storage systems (ESS).

The Commission also allowed SJVN to charge a trading margin of ₹0.07 (~$0.0007)/kWh for the sale of power to distribution companies and other buying entities.

Background

SJVN issued a tender in December 2024 to procure firm, dispatchable power from grid-connected renewable energy projects with energy storage systems. The tender sought 1,500 MW of contracted capacity capable of supplying 6,000 MWh of assured peak power.

A total of 16 bidders submitted bids for an aggregate capacity of 5,260 MW against the tendered capacity of 1,500 MW.

Following the financial bid opening and e-reverse auction conducted on October 9, 2025, four bidders emerged as successful developers: Reliance NU Energies Private. ACME Solar Holdings, Solarcraft Power India, and Sembcorp Green Infra.

The e-reverse auction discovered tariffs ranging from ₹6.74 (~$0.0712)/kWh and ₹6.75 (~$0.0713)/kWh.

Subsequently, ACME Solar Holdings and Solarcraft Power India agreed to reduce their tariffs to match the lowest discovered tariff of (~$0.0712)/kWh. As a result, the entire awarded capacity of 1,500 MW was contracted at a uniform tariff of ₹6.74 (~$0.0712)/kWh.

SJVN submitted that the discovered tariff compares favorably with similar recent tenders. It cited SECI’s FDRE-VI tender, which awarded a tariff of ₹8.50 (~$0.099)/kWh, and an NVVN standalone battery energy storage tender, which awarded a tariff of ₹6.64 (~$0.077)/kWh with viability gap funding support.

During the proceedings, SJVN informed the Commission that it had already tied up 1,150 MW of the awarded capacity through executed power sale agreements (PSAs).

The company signed a PSA for 450 MW with Bihar State Power Holding Company and its distribution companies in February 2026 and another PSA for 700 MW with Tamil Nadu Power Distribution Corporation in March 2026.

The remaining 350 MW capacity is under discussion with prospective buyers, including Kerala State Electricity Board and BSES Rajdhani Power.

Commission’s Analysis

The Commission noted that the bidding process attracted significant participation, with bids totaling more than three times the tendered capacity. The bid evaluation committee certified that the process was conducted transparently and in accordance with the request for selection documents and the applicable bidding guidelines.

It observed that the tariff was determined through a transparent, competitive bidding process conducted in accordance with Section 63 of the Electricity Act and the applicable bidding guidelines. It therefore adopted the tariffs for all four projects.

The Commission directed SJVN to place on record all future power purchase agreements and PSAs executed for the remaining capacity.

CERC approved SJVN’s request to charge a trading margin of ₹0.07 (~$0.0007)/kWh for the sale of power.

However, it clarified that if SJVN fails to provide the prescribed payment security mechanism, including an escrow arrangement or an irrevocable revolving letter of credit in favor of the generators, the trading margin will be restricted to ₹0.02 (~$0.0002)/kWh.

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