CENTRAL ELECTRICITY REGULATORY COMMISSION

NEW DELHI
Petition No. 235/AT/2022

Coram:
Shri I.S. Jha, Member
Shri Arun Goyal, Member
Shri P.K. Singh, Member

Date of order: 8th January, 2023

In the matter of

Petition under section 63 of the Electricity Act, 2003 for adoption of tariff for
renewable energy projects connected to inter-state transmission system (ISTS) with
assured peak power supply in India and selected through competitive bidding process
as per the guidelines of the Government of India.

And
In the matter of

Solar Energy Corporation of India Limited,

6th Floor, Plate-B, NBCC Office Block Tower-2,
East Kidwai Nagar,
New Delhi-110023.
……… Petitioner
Vs

1) ReNew Solar Power Private Limited,

ReNew Hub, Commercial Block-1, Zone-6,
Golf Course Road, DLF City Phase V,
Gurugram, Haryana – 122009

2) Greenko Energies Private Limited,

Plot No: 1071, Road No. 44,
Jubilee Hills, Hyderabad,
Telangana – 500033

3) Greenko AP01 IREP Private Limited,

Plot No.13, SY. NO. 64 Part, Second Floor, Block D,
Hitech City Layout, Madhapur,
Hyderabad Rangareddi,
Telangana – 500081

4) Damodar Valley Corporation,

DVC Towers, VIP Road,

Order in Petition No.235/AT/2022 Page 1

Kolkata – 700054

5) Jaipur Vidyut Vitaran Nigam Limited,

Vidyut Bhawan,Janpath, Jyoti Nagar,
Jaipur, Rajasthan – 302005

6) Jodhpur Vidyut Vitaran Nigam Limited,

New Power House, Industrial Area,
Jodhpur, Rajasthan – 342003

7) Rajasthan Urja Vikas Nigam Limited,

Vidyut Bhawan,Janpath, Jyoti Nagar,
Jaipur, Rajasthan – 302005

8) Ajmer Vidyut Vitaran Nigam Limited,

Vidyut Bhawan, Panchsheel Nagar,
Makarwali Road, Ajmer
Rajasthan-305004

9) North Bihar Power Distribution Company Limited,

Third Floor, Vidyut Bhawan, Bailey Road,
Patna – 800001

10) South Bihar Power Distribution Company Limited,

Third Floor, Vidyut Bhawan, Bailey Road,
Patna-800001

11) Bihar State Power Holding Company Limited,

First Floor, Vidyut Bhawan, Bailey Road,
Patna- 800001

12) Government of Goa,

Electricity Department,
3rd Floor, Vidyut Bhavan,
Panaji, Goa- 403001

13) Haryana Power Purchase Centre,

Shakti Bhawan, Sector-6, Panchkula,
Haryana-134109.

14) Renew Surya Ojas Private Limited,

138, Ansal Chambers-II,
Bikaji Cama Place,
New Delhi-110066 … Respondents

The following were present:

Shri M. G. Ramachandran, Sr. Advocate, SECI

Order in Petition No.235/AT/2022 Page 2

Ms. Tanya Sareen, Advocate, SECI
Ms. Srishti Khindaria, Advocate, SECI
Shri Agam Kumar, ReNew
Shri Abhishek, ReNew

ORDER

The Petitioner, Solar Energy Corporation of India Limited (‘SECI’), has filed the

present Petition under Section 63 of the Electricity Act, 2003 (hereinafter referred to

as “the Act”) for adoption of tariff for renewable energy projects connected to inter-

State transmission system (ISTS) with assured peak power supply in India and

discovered through competitive bidding process as per the Guidelines issued by the

Government of India viz. “Guidelines for Tariff Based Competitive Bidding Process for

Procurement of Power from Grid Connected Solar Power Projects” dated 3.8.2017

(hereinafter referred to as “Solar Guidelines‟) issued by Ministry of Power,

Government of India, “Guidelines for Tariff Based Competitive Bidding Process for

Procurement of Power from Wind Power Projects‟ dated 8.12.2017 (hereinafter

referred to as “Wind Guidelines”) issued by Ministry of Power, Government of India

and the draft “Guidelines for Tariff Based Competitive Bidding Process for

Procurement of power from Grid Connected Wind-Solar Hybrid Projects‟

dated11.10.2019 issued by Ministry of New & Renewable Energy, Government of

India, which thereafter came to be notified on 14.10.2020 (hereinafter referred to as

“Wind-Solar Hybrid Guidelines”) . The Petitioner has made the following prayers:

“(a) Adopt the tariff discovered in the tariff based competitive bid process for the
aggregate capacity from renewable power projects on the terms and conditions
contained in the Power Purchase Agreements signed with the Power Developers read
with the Power Sale Agreements signed with the Buying Entities as on the date of
reserving the decision in the present Petition after hearing of the parties;

Order in Petition No.235/AT/2022 Page 3

 (b) Approve Trading Margin of Rs.0.07/kWh as agreed to by the Buying Entities/
Distribution Licensees in the signed PSAs in terms of Regulation 8 (1)(d) of the
Trading License Regulations, 2020.”

Submissions of the Petitioner

2. The Petitioner, SECI has submitted that it had analyzed the demand profiles of

the various Buying Entities/Distribution Companies and found that the major power

requirement of the most of them is during the evening and morning peak hours, which

is being met by them by buying expensive power either from open market or form the

tied-up peaking power plants mainly gas based. Accordingly, on 1.8.2019, SECI

issued Request for Selection (“RfS”) along with draft Power Purchase Agreement

(“PPA”) and draft Power Sale Agreement (“PSA”) documents on ISN Electronic

Tender System (ETS) e-bidding portal for Selection of Project Developers for setting

up of 1200 MW ISTS-connected Renewable Energy Projects with assured Peak

Power Supply in India (ISTS-VII). The Petitioner has submitted that in pursuance to

the above, three bids were received offering an aggregate capacity of 1620 MW and

all of them were found to meet the technical criteria. On 30.1.2020, the financial bids

of technically qualified bidders were opened on the ISN ETS e-bidding portal in the

presence of Bid evaluation Committee and all three bidders for aggregating 1620 MW

were shortlisted for e-reverse auction. The Petitioner has submitted that e-reverse

auction of the qualified bidders was conducted on 31.1.2020 on ISN ETS e-bidding

portal and the final tariff was arrived. Pursuant to the issuance of Letter of Award to

the successful bidders, on 26.2.2020, Greenko Energies Private Limited (900 MW)

and Renew Solar Power Private Limited (300 MW), the Petitioner has entered into

PPAs with their Project Companies. The Petitioner has submitted that RE Projects

are scheduled to be commissioned within in 18 months from the effective date of the

Order in Petition No.235/AT/2022 Page 4

PPAs. Initially, SECI signed the PSAs for total 1050 MW RE power with the

distribution licensees, namely, Damodar Valley Corporation (DVC), North Bihar

Power Distribution Company Limited (NBPDCL), Distribution Companies of Rajasthan

(Rajasthan Urja Vikas Nigam Limited, Jaipur Vidyut Vitaran Nigam Limited, Ajmer

Vidyut Vitaran Nigam Limited and Jodhpur Vidyut Vitaran Nigam Limited) and

Electricity Department, Government of Goa, at the rate of Rs.2.88/kWh (Off Peak

tariff) + Rs.6.12/kWh (Peak Hour tariff) or Rs.2.88/kWh (Off Peak tariff) + 6.85/kWh

plus trading margin of Rs.0.07/kWh. However, after the filing of the Petition, SECI

signed PPA dated 7.7.2022 with Greenko AP01 IREP Private Limited for 210 MW,

PPA dated 31.8.2022 with Renew Surya Ojas Private Limited for 300 MW and PSA

dated 26.7.2022 with Haryana Power Purchase Centre for 150 MW, the details of

which have been furnished by an additional affidavit dated 19.9.2022. Thus, the entire

1200 MW under the Peak Power Scheme initiated by SECI has been tied up under

the PPAs signed with Renewable Power Developers and PSAs signed with Buying

Entities/Distribution licensees and accordingly, the Petitioner has prayed for adoption

of tariff for entire 1200 MW capacity from RE Projects. According to the Petitioner,

tariff discovered for procurement of power from RE Power Developer under the

present bidding process is competitive and beneficial to the distribution licensees and

the consumers.

Hearing dated 20.10.2022

3. The matter was heard on 20.10.2022 and notice was issued to the

Respondents. The Petitioner was directed to file a brief note explaining as to how the

Order in Petition No.235/AT/2022 Page 5

modalities/ conditions of RfS document for Assured Peak Power Supply Scheme fall

within the various Guidelines of Government of India as referred to in the Petition.

4. The Petitioner vide its affidavit dated 17.11.2022 has submitted the aforesaid

information as called for. None of the Respondents filed any reply to the Petition.

Hearing dated 13.12.2022

5. During the course of hearing on 13.12.2022, learned senior counsel for the

Petitioner prayed for adoption of tariff for the RE Projects connected to Inter-State

Transmission System (ISTS) with Assured Peak Power Supply (‘Assured Peak Power

Supply Scheme’) selected through competitive bidding process as per the Guidelines

of the Government of India. Learned senior counsel further submitted that RfS

documents for the Assured Peak Power Supply Scheme are consistent with the

provisions of the Solar Guidelines, Wind Guidelines, Wind-Solar Hybrid Policy and

draft/final Wind-Solar Hybrid Guidelines and SECI has placed on record a conformity

certificate dated 12.2.2021 to the above effect. Learned senior counsel also submitted

that none of the Respondents had objected to the aforesaid Assured Peak Power

Supply Scheme. Further, vide Record of Proceedings for the hearing dated

13.12.2022, the Petitioner was directed to file the details with regard to the approval

of the PSAs by the respective State Commission, if any.

6. The Petitioner vide its written submission dated 21.12.2022 has submitted the

aforesaid information as called for.

Order in Petition No.235/AT/2022 Page 6

Analysis and Decision

7. The Petitioner has stated that in the present case, the RfS documents has

been prepared based on the Solar Guidelines dated 3.8.2017, Wind Guidelines dated

8.12.2017, Wind-Solar Hybrid Policy dated 14.5.2018 and Wind-Solar Hybrid

Guidelines dated 11.10.2019 (draft)/14.10.2020 (notified) issued by the Government

of India read with subsequent clarifications/modifications thereto. We now proceed to

consider the prayer of the Petitioner as regards the adoption of tariff under Section 63

of the Act in respect of the RE Power Projects discovered pursuant to the competitive

bid process carried out in terms of the above Guidelines issued by the Government of

India.

8. Section 63 of the Act provides as under:

“Section 63: Determination of tariff by bidding process: Notwithstanding anything

contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff
has been determined through transparent process of bidding in accordance with the
guidelines issued by the Central Government.”

9. Thus, in terms of Section 63 of the Act, the Commission is required to adopt

the tariff, on being satisfied that the transparent process of bidding in accordance with

the guidelines issued by the Central Government has been followed in determination

of such tariff.

10. As to the Guidelines, Ministry of Power, Government of India has notified the

Solar Guidelines under Section 63 of the Act vide Resolution No. 23/27/2017-R&R on

3.8.2017. The said Guidelines have been subsequently amended by the Resolutions

dated 14.6.2018, 3.1.2019, 9.7.2019, 22.10.2019 and 25.9.2020. The salient features

of the Solar Guidelines are as under:

Order in Petition No.235/AT/2022 Page 7

 (a) The Guidelines are applicable for procurement of power from grid connected
solar PV power projects having size of 5 MW and above through tariff based
competitive bidding to be conducted by procurers which includes distribution
licensees, or the Authorized Representative(s), or Intermediary procurers.

(b) The procurer shall prepare the bid documents in accordance with the
Guidelines and the Standard Bid Documents notified by the Ministry of Power,
Government of India. If any, deviation is proposed to be made in the Guidelines
and Standard Bid Documents, approval of the Appropriate Commission would be
necessary. Intimation about initiation of the bid process shall be sent by the
procurer to the Appropriate Commission.

(c) Bids shall be designed in terms of a package. The minimum size of a

package should be 50 MW in order to have economies of scale. Bidders shall
quote for entire package.

(d) The procurer has option to choose to invite the two bids, namely, (i) power
capacity (MW) terms, or (ii) energy quantity (kWh or million units i.e. MU) terms.
For procurement of power, the procurer may opt for either tariff or viability gap
funding as bidding parameter.

(e) Draft PPA proposed to be entered into with the successful bidder and draft
PSA, if applicable, shall be issued along with the RfS. Standard provisions to be
incorporated as part of the PPA shall include, inter-alia, PPA period, quantum of
power/ energy to be procured, payment security, generation compensation of
offtake constraint, event of default and consequences thereof and Change in Law
and shall be provided for, on back-to-back basis, in the PSA.

(f) Procurer and Intermediary procurer shall provide payment security to the
solar power developer through revolving Letter of Credit of an amount not less
than one month average billing and Payment Security Fund for at least three
months’ billing of all the projects tied up with such fund. In addition, the procurer
may also choose to provide State Government Guarantee.

Order in Petition No.235/AT/2022 Page 8

 (g) End procurer shall provide payment security to the intermediary procurer
through revolving Letter of Credit of an amount not less than one month`s
average billing from the project under consideration and State Government
Guarantee. In addition, end procurer may also choose to provide Payment
Security Fund with at least three months’ billing of all the projects tied up with
such fund.

(h) The procurer shall call the bids adopting a single stage bidding process to be
conducted through electronic mode (e-bidding). The procurers may adopt e-
reverse auction, if it so desires. For this purpose, e-procurement platforms with a
successful track record and with adequate safety, security and confidentiality
features will be used. In case of solar park specific project, procurer shall provide
intimation to the solar power park developer about the initiation of the bidding
process and arrange the access of the bidders to the drafts of Implementation
Support Agreement and land related agreement.

(i) RfS notice shall be issued in at least two national newspapers and on the
websites of the procurer to provide wide publicity. Standard documentation to be
provided in the RfS stage shall include technical criteria, financial criteria,
quantum of earnest money deposit and lock-in requirements for the lead
members of the consortium.

(j) The procurer shall constitute committee for evaluation of the bids (Evaluation
Committee), with at least three members, including at least one member with
expertise in financial matters/ bid evaluation.

(k) Bidder shall submit non-refundable processing fee and/or project

development fee as specified in the RfS, separate technical and price bids and
bid guarantee. To ensure competitiveness, the minimum number of qualified
bidders shall be two. If the number of qualified bidders is less than two even after
three attempts of bidding, and the procurer still wants to continue with the bidding
process, the same may be done with the consent of the Appropriate Commission.

Order in Petition No.235/AT/2022 Page 9

 (l) The PPA shall be signed with the successful bidder or an SPV formed by the
successful bidder. After conclusion of bidding process, Evaluation Committee
shall critically evaluate the bids and certify that the bidding process and the
evaluation have been conducted in conformity with the provisions of RfS. After
execution of the PPA, procurers shall disclose the name(s) of the successful
bidder(s) and the tariff quoted by them in its website. Accordingly, the distribution
licensee or the intermediary procurer shall approach the Appropriate Commission
for adoption of tariff in terms of Section 63 of the Act.

11. Ministry of Power, Government of India has notified the Wind Guidelines under

Section 63 of the Act vide Resolution No. 23/54/2017-R&R on 8.12.2017. The said

Guidelines have been subsequently amended vide Resolution dated 16.7.2019. The

salient features of the Wind Guidelines are as under:

(a) Guidelines are applicable for procurement of power by the procurers from grid
connected wind power projects having, (a) individual size of 5 MW and above at
one site with minimum bid capacity of 25 MW for intra-State projects; and (b)
individual size of 50 MW and above at one site with minimum bid capacity of 50
MW for inter-State projects through tariff based competitive bidding to be
conducted by procurers which includes distribution licensee, or the authorized
representative(s), or intermediary procurers.

(b) Procurer shall prepare the bid documents in accordance with the Guidelines
and the Standard Bid Documents notified by the Ministry of Power, Govt. of India.
If any deviation is proposed to be made in the Guidelines and Standard Bid
Documents, approval of the Appropriate Commission would be necessary.
Intimation about initiation of the bid process shall be sent by the procurers to the
Appropriate Commission.

(c) Bids shall be designed in terms of total wind power capacity to be procured in
MW. For intra-State projects, minimum bid shall be 25 MW with at least 5 MW
project at one site and for inter-State projects, minimum bid shall be 50 MW at

Order in Petition No.235/AT/2022 Page 10

 one site. Procurer may choose to specify the maximum capacity that can be
allotted to a single bidder including its affiliates.

(d) The Procurer has option to choose from two kinds of tariff based bidding,
namely, (i) fixed tariff in Rs./kWh for 25 years or more, or (b) escalating tariff in
Rs./kWh with pre-defined quantum of annual escalations fixed in Rs./kWh and
number of years from which such fixed escalation will be provided.

(e) Draft PPA proposed to be entered into with the successful bidder and draft
PSA, if applicable, shall be issued along with the RfS. PPA period shall not be
less than 25 years from the date of Scheduled Commissioning Date.

(f) Wind power developer will declare the annual CUF of its Project at the time of
signing of PPA and will be allowed to revise the same once within first three years
of COD. The declared annual CUF shall in no case be less than 22%.

(g) Procurer and intermediary procurer shall provide payment security to the wind
power developer through revolving Letter of Credit of an amount not less than
one month average billing and Payment Security Fund for at least three months
billing of all the projects. In addition, the procurer and intermediary procurer may
also choose to provide State Government Guarantee.

(h) End procurer shall provide payment security to the intermediary procurer
through revolving LC of an amount not less than one month`s average billing from
the project under consideration and State Government Guarantee. In addition,
end procurer may also choose to provide Payment Security Fund with at least
three months billing of all the projects tied up with such fund.

(i) Procurer shall call the bids adopting a single stage bidding process to be
conducted through electronic mode (e-bidding). The procurers may adopt e-
reverse auction, if it so desires. For this purpose, e-procurement platforms with a
successful track record and with adequate safety, security and confidentiality
features will be used.

(j) RfS notice shall be issued in at least two national newspapers and on
websites of the procurer to provide wide publicity. Standard documentation to be

Order in Petition No.235/AT/2022 Page 11

 provided in the RfS Stage shall include technical criteria, financial criteria,
quantum of earnest money deposit and lock-in-requirements for the lead
members of the consortium.

(k) Procurer shall constitute committee for evaluation of the bids, with at least
three members, including at least one member with expertise in financial
matters/bid evaluation.

(l) Bidder shall submit non-refundable processing fee and/or project

development fee as specified in the RfS, separate technical and priced bids and
bid guarantee. To ensure competitiveness, the minimum number of qualified
bidders shall be two. If the number of qualified bidders is less than two, even after
three attempts of bidding, and the procurer still wants to continue with the bidding
process, the same may be done with the consent of the Appropriate Commission.

(m) PPA shall be signed with the successful bidder/project company or an SPV
formed by the successful bidder. After conclusion of bidding process, Evaluation
Committee shall evaluate the bids and certify that the bidding process and the
evaluation have been conducted in conformity with the provisions of RfS. After
execution of the PPA, procurers shall disclose the name(s) of the successful
bidder(s) and the tariff quoted by them in its website. The distribution licensee or
the intermediary procurer, as the case may, shall approach the Appropriate
Commission for adoption of tariff in terms of Section 63 of the Act.

12. As regards the wind-solar hybrid projects, initially the Ministry of New and

Renewable Energy, Government of India issued the National Wind-Solar Hybrid

Policy dated 14.5.2018 to provide the framework for promotion of large grid

connected wind-solar hybrid system for optimal and efficient utilisation of transmission

infrastructure and land, reducing the variability in renewable generation and achieving

better grid stability. The said Policy, inter-alia, encouraged the implementation of new

wind-solar hybrid projects for captive use, sale to third parties, sale to distribution

Order in Petition No.235/AT/2022 Page 12

companies either at tariff determined by the State Commissions or at tariff discovered

through transparent bidding process, etc. and it also envisaged addition of battery

storage to the hybrid projects. Thereafter, in furtherance to the aforesaid Policy,

MNRE issued the draft Wind-Solar Hybrid Guidelines on 11.11.2019 providing the

framework for transparent bidding process under Section 63 of the Act and to enable

the distribution licensees to procure electricity from wind-solar hybrid project at

competitive rates in cost effective manner. The said draft Wind-Solar Hybrid

Guidelines came to be finalised on 14.10.2020. Subsequently, the said Guidelines

have been amended by Ministry of New and Renewable Energy on 23.7.2021,

9.3.2022 and finally on 2.11.2022. The salient aspects of the final Wind-Solar Hybrid

Guidelines are as under:

(a) The Guidelines are applicable for procurement of power from hybrid power
projects having individual size of 50 MW and above at one site with minimum bid
capacity of 50 MW through tariff based competitive bidding to be conducted by
procurers which includes distribution licensees or intermediary procurers. The
rated power capacity of one resource (wind or solar) shall be at least 33% of the
total contracted capacity.

(b) The solar and wind power projects may be located at same or different
nearby locations. The minimum capacity to be injected at each injection point
shall be 50 MW. Storage may be added to the hybrid power project.

(c) The intermediary procurer shall prepare the bid documents in accordance
with the Guidelines and shall approach MNRE for deviations (if required) from
these Guidelines.

(d) Bids shall be for a minimum 50 MW project at one site. The procurer may also
choose to specify the maximum capacity that can be allotted to a single bidder
including its affiliates. The maximum capacity for single bidder or company or

Order in Petition No.235/AT/2022 Page 13

 group of companies may be fixed by the procurer keeping in mind factors such as
economies of scale, land availability, expected competition and need for
development of market.

(e) For procurement of wind-solar hybrid power, the tariff quoted by the bidder
shall be the bidding parameter. The procurer may select either of the following
kinds of tariff based bidding: (a) fixed tariff in Rs./kWh for 25 years or more, or (b)
escalating tariff in Rs./kWh with pre-defined quantum of annual escalations fixed
in Rs./kWh and number of years from which such fixed escalation will be
provided.

(f) Draft PPA proposed to be entered into with the successful bidder and draft
PSA, if applicable, shall be issued along with the RfS. Standard provisions to be
incorporated as part of the PPA shall include, inter-alia, PPA period, Capacity
Utilization Factor, Repowering, Payment Security, Payment Security by
intermediary procurer to the hybrid power generator, revolving Letter of Credit
and State Government guarantee, Change in Law, Force Majeure, Off-take
constraints due to Back down, Event of Default and consequences thereof.

(g) Intermediary procurer shall provide payment security to hybrid power

generator through revolving Letter of Credit of an amount not less than one month
average billing and Payment Security Fund for at least three months’ billing of all
the projects tied up with such fund. For the purpose of this Payment Security
Fund, the intermediary procurer may collect Rs.5 lakh/MW from hybrid power
generator(s).

(h) Discoms shall provide payment security to the intermediary procurer through
revolving Letter of Credit of an amount not less than one month`s average billing
from the project(s) under consideration and State Government Guarantee or Tri-
Partite Agreement.

(i) Procurer/intermediary procurer shall call the bids adopting a single stage
bidding process to be conducted through electronic mode (e-bidding). Procurer
may adopt e-reverse auction. For this purpose, e-procurement platforms with a

Order in Petition No.235/AT/2022 Page 14

 successful track record and with adequate safety, security and confidentiality
features will be used.

(j) The bidding documents including RfS, draft PPA shall be prepared by
procurer in consonance with these Guidelines. RfS notice shall be published on
the Central Public Procurement Portal website and Procurer`s website to accord
wide publicity. Standard documentation to be provided in RfS stage shall include
technical criteria, financial criteria, net worth, liquidly, quantum of earnest money
deposit and compliance of laws by foreign bidders.

(k) The procurer shall constitute committee for evaluation of the bids (Evaluation
Committee), with at least three members, including at least one member with
expertise in financial matters/ bid evaluation. The price bid shall be rejected, if it
contains any deviation from the bid conditions.

(l) Bidder shall submit non-refundable processing fee as specified in the RfS,
separate technical and price bids and bid guarantee. To ensure competitiveness,
the minimum number of qualified bidders shall be two. If the number of qualified
bidders is less than two even after three attempts of bidding, and the procurer still
wants to continue with the bidding process, the same may be done.

(m) The comparison of bids shall be on the basis of the bidding criteria as
specified in the RfS, i.e. the fixed tariff or the first year tariff. Ranking of the
bidders will start from the bidder quoting the “lowest tariff (L1)”. The selection of
all successful bidders would be on bucket filling approach starting with L1 till
entire capacity for which the bid has been called for is full or the capacity
corresponding to the upper limit for the band for the L1 tariff is reached,
whichever is earlier.

(n) After conclusion of bidding process, the Evaluation Committee constituted for
evaluation of RfS bids shall critically evaluate the bids and certify as appropriate
that the bidding process and the evaluation has been conducted in conformity to
the provisions of the RfS.

(o) The PPA shall be signed with the successful bidder/ project company or an
SPV formed by the successful bidder. After execution of the PPA, procurer shall

Order in Petition No.235/AT/2022 Page 15

 disclose the name(s) of the successful bidder(s) and the tariff quoted by them
together with breakup into components, if any.

13. The Petitioner, SECI has submitted that the bid documents for Assured Peak

Power Supply Scheme have been prepared based on the Solar Guidelines, Wind

Guidelines and Wind-Solar Hybrid Policy dated 14.5.2018 along with draft Wind-Solar

Hybrid Guideline dated 11.10.2019, which came to be finalised on 14.10.2020.

Highlighting the key features of Assured Peak Power Supply Scheme as provided for

in RfS document, SECI has submitted as under:

(a) Peak Power Scheme envisages in making available firm and dispatchable
renewable power, meeting the demand pattern of distribution licensees during
peak hours at competitive tariff.

(b) Single stage, Double Envelope bidding followed by e-reverse auction has
been envisaged under this RfS. Bidders have to submit both Techno-Commercial
Bid and Financial Bid (Tariff) together in response to the RfS.

(c) The Project shall comprise minimum two ‘components’ - one being the
Energy Storage System (hereinafter ‘ESS’) component, and the other being the
renewable energy generating component which can be either a solar PV system,
or a wind power system, or a combination thereof. In case, the Project Developer
chooses to install a combination of both wind and solar PV components in the
Project, the Project shall be denoted as a Wind-Solar Hybrid Power Project under
the National Wind-Solar Hybrid Policy.

(d) With respect to the ESS being used in the Project, the Bidder has the
flexibility to choose the type and power rating of the energy storage system to be
installed in addition to the Solar PV and/or wind power capacity. The ESS may
include, but not be limited to, battery energy storage systems, pumped storage
systems, mechanical and chemical systems, or combinations thereof.

(e) The power project can be located anywhere in India.

Order in Petition No.235/AT/2022 Page 16

 (f) For each Project, the minimum project capacity shall be 50 MW and the
maximum capacity shall be 900 MW

(g) The Bidders shall submit their bid by offering a single Peak Tariff for all the
Projects quoted for, which shall be applicable for 25 years as per the provisions of
PPA.

(h) The Projects selected under the RfS shall be eligible for two-part tariffs.
These shall be referred to as “Peak Tariff” and “Off-Peak Tariff” as defined in the
RfS. Energy supplied during the Off-Peak Hours shall be eligible for a flat tariff
payment at Rs. 2.88/kWh, i.e. the Off-Peak Tariff. Energy supplied during the
Peak Hours shall be purchased at the tariff discovered through e-Reverse Auction
as per this RfS, i.e. the Peak tariff. The applicable tariff under the PPA shall
comprise both peak and off-peak tariffs, and shall be fixed for the entire term of
the PPA

(i) The off-peak Hours and Peak Hours have been defined under the RfS as
under:

1.32 “Off-Peak Hours” shall mean the energy scheduling hours

between (& including) 09:00 hrs up to 18:00 hrs and the hours between
(& including) 00:00 hrs up to 06:00 hrs of the subsequent day;

1.37“Peak Hours” shall mean the energy scheduling hours between (&
including) 06:00 hrs up to 09:00 hrs, and between (& including) 18:00
hrs to 24:00 hrs of the same day. For the purpose of scheduling, a ‘day’
shall commence from 00:00 hrs and end at 24:00 hrs’;

Further, a variation of ±30 minutes in the deadlines of morning and evening

peak hours is also allowed in making that choice by the distribution companies.
The buying entities/distribution licensees shall mandatorily off-take peak power
by choosing 4 hours from the evening peak hours and 2 hours from the
morning peak hours.

(j) The discharge of mandated supply of energy during peak hours shall be
governed by the demand pattern of the corresponding buying entity(ies), as per
the buying entity’s day ahead schedule. The power supply from the Project will be

Order in Petition No.235/AT/2022 Page 17

 off-taken by the buying entity on a “must-run” basis, for the 24-hour period of the
day.

14. Taking note of the scheme of the RfS and the bid process, the Commission

vide Record of Proceedings for the hearing dated 20.10.2022 directed SECI to furnish

a brief note explaining as to how the modalities/conditions of RfS document for

Assured Peak Power Supply Scheme fall within the various Guidelines of

Government of India as referred to in the Petition. In response, the SECI vide its

affidavit dated 17.11.2022 has submitted as under:

(a) Each of the Guidelines, namely, Solar, Wind and draft/final Wind-Solar Hybrid
Guidelines as notified by the Central Government is for promotion and
procurement of renewable power. The Guidelines do not mandate that the
renewable power should always be procured at uniform tariff on 24×7 basis. Even
under the conventional competitive bidding process, it is allowed to the procurer
to source power only for meeting the peak power or seasonal power. Any such
procurement for part of the day or at differential pricing for peak hours & non-peak
hours is within the scope of promotion of renewable power for which the
Guidelines have been issued.

(b) Renewable Peak Power Scheme is within the scope of Section 61(h) read
with Section 86(1)(e) and also the Preamble of the Act, National Electricity Policy
and National Tariff Policy providing for promotion of renewable sources of energy.
The Peak Power Scheme envisages in making available firm and dispatchable
renewable power, meeting the demand pattern of distribution licensees during
peak hours at competitive tariff. In fact, the renewable peak power scheme is an
essential process which is more beneficial for procurement of power by the
distribution licensees in the State to meet the RPO and therefore, definitely within
the scope of the Guidelines notified by the Central Government.

(c) Clause 3.1.1(c) of the Solar Guidelines, Clause 5.1(c) of the Wind Guidelines
and Clause 6.1(d) of the draft Wind-Solar Hybrid Guidelines provide that till the

Order in Petition No.235/AT/2022 Page 18

 time the Standard Bidding Documents (SBDs) are notified by the Central
Government, for the purpose of clarity, if the Procurer while preparing the draft
RfS, draft PPA and draft PSA and other Project agreements provides detailed
provisions that are consistent with the Guidelines such detailing will not be
considered as deviations from these Guidelines even though such details are not
provided in the Guidelines.

(d) The scheme of Guidelines issued by the Central Government being on macro
aspects whereas the RfS/Bidding documents/Standard PPA & PSA structure the
terms and conditions of procurement of power - has been duly recognised by the
Hon’ble Supreme Court in the case of Energy Watchdog v. Central Electricity
Regulatory Commission and Ors. [(2017) 14 SCC 80]. In the said case, the
Guidelines dealt with Change in Law and Force Majeure in a restricted manner
leaving the terms to be more specifically dealt with in the PPA. This is consistent
with the well-accepted principle that at the stage of the Guidelines it is not
possible to envisage the detailing of the schemes and therefore, the same is left
to be dealt under delegation of power.

(e) It is, therefore, open to the RfS/Bid documents to provide detailed provisions
including in regard supply of renewable power during peak hours and off-peak
hours. These provisions are consistent with the objective of the Guidelines
namely, procurement of Solar/Wind/Wind-Solar Hybrid power at competitive rates
in cost effective manner.

(f) SECI has furnished a comparative statement indicating the steps and process
followed by SECI in the bidding/tender mapping the same to the corresponding
enabling provisions of the Guidelines as amended/modified from time to time.

15. We have noted the brief explanation furnished by SECI. A similar aspect of

SECI having issued the RfS documents/tender for RTC supply from RE Projects with

assured Peak Power Supply prepared based on the multiple Guidelines issued by

Central Government has been considered by the Commission vide its order dated

Order in Petition No.235/AT/2022 Page 19

8.4.2022 in Petition No. 258/AT/2021 (SECI v. ReNew Solar Power Private Ltd. and 4

Ors.). In the said order, the Commission, inter-alia, had observed as under:

“16. We have considered the submissions made by the Petitioner and the
documents made available along with the Petition. Perusal of the scheme
covered under the RfS document that is selection of RE power developer for
“Round-the-Clock” supply of 400 MW ISTS-connected Renewal Energy project
with assured Peak Power supply in India under Tariff based competitive
bidding reveals that it indeed was difficult to conform the said bid process
under any single Guidelines at the time of issuance of the tender. As rightly
clarified by SECI that at the time of issuance of the tender, it would not have
been possible to anticipate the RE source (whether wind or solar or any other
renewable source or combination thereof along with energy storage system)
based on which the developer would be participating in the bid process and
placing its bid. Accordingly, SECI has proceeded with preparing the RfS/bid
documents based on the Solar Guidelines, Wind Guidelines and draft Wind-
Solar Hybrid Guidelines dated 11.10.2019 issued under the aegis of Wind-
Solar Hybrid Policy dated 14.5.2018, which came to be finalised only on
14.10.2020 (i.e. after the bid process). Ultimately, the configuration of the RE
projects by the successful bidders ReNew Solar Power Private Limited came
to be a combination of wind and solar projects, in other words, wind-solar
hybrid project. Hence, in hindsight, it appears that the entire bid process and
the bid documents could have been in conformity with the Wind-Solar Hybrid
Guidelines. However, admittedly, at the time of issuance of the RfS/bid
documents and conducting the bid process, the only available framework
relating to wind-solar hybrid projects were the National Wind-Solar Hybrid
Policy and the draft Wind-Solar Hybrid Guidelines, whereas the said draft
guidelines came to be finalised and issued on 14.10.2020 after the bid
process.

17. During the course of hearing on 24.3.2022, SECI was directed as to the
bid documents being in conformation with all the Guidelines as relied upon by
it, which was confirmed by the SECI albeit read with the
clarifications/modification issued by the Ministry of New and Renewable
Energy vide letters dated 18.12.2020 and 1.3.2021. In addition, SECI has also
furnished a conformity certificate dated 24.8.2021 to the above effect, which
has been discussed in the subsequent paragraphs of this order. Taking into
the account the aforesaid submissions of SECI and specific aspects of the
present matter including the nature of tender/RfS, we are constrained to take a
pragmatic view in the matter in favour of considering the RfS and bid process
as per the provisions of the above Guidelines rather than taking a view which
would defeat the entire purpose of the promotion of renewable energy and bid
process already concluded. However, our aforesaid decision shall not be
construed as permission to SECI to undertake the bid process under multiple
guidelines and SECI would require to exercise abundant caution while framing
such tenders/RfS as while the procedure for conducting the bidding might be

Order in Petition No.235/AT/2022 Page 20

 similar across the various Guidelines, the project specific features under the
each Guidelines might differ which need to be incorporated in the bid
documents in order to make them in consonance with the respective
Guidelines. In view of the above, we proceed to examine whether the process
as per provisions of the various Guidelines has been followed in the present
case for arriving at the lowest tariff and for selection of the successful
bidder….”

16. The above observations of the Commission squarely apply to the present case

wherein SECI has proceeded with preparing the RfS/bid documents based on the

Solar Guidelines dated 3.8.2017, Wind Guidelines dated 8.12.2017 and draft Wind-

Solar Hybrid Guidelines dated 11.10.2019 as issued under the aegis of the Wind-

Solar Hybrid Policy dated 14.5.2018, which came to be finalised only on 14.10.2020

(i.e. after the bid process). It is noticed that issuance of RfS/bid documents &

conclusion of bid process in the present case had been prior in point of time than

those involved in Petition No. 258/AT/2021. In the said order, the Commissions had

advised SECI to exercise the abundant caution while framing such tenders/RfS as

while the procedure for conducting the bidding might be similar across the various

Guidelines, the project specific features under each Guidelines might differ which

need to be incorporated in the bid documents in order to make them in consonance

with the respective Guidelines. Moreover, certain common provisions also differ

across the Guidelines. For instance, Solar Guidelines contain a detailed force

majeure clause as against the other Guidelines. Similarly, the Change in Law clause

in the Wind-Solar Hybrid Guidelines also differs from that in the other Guidelines.

However, learned senior counsel for SECI during the course of hearing stated that the

provisions of RfS/bid documents are in conformity with the above Guidelines read

with the subsequent clarification/amendments thereto and SECI has also filed a

conformity certificate to this effect. The learned senior counsel also pointed out that

Order in Petition No.235/AT/2022 Page 21

none of the Respondents had objected to the Assured Peak Power Supply Scheme.

Considering the above submissions of SECI and the specific aspects of the present

case including the nature of tender/RfS, we are inclined to proceed to examine

whether the process as per provisions of the various Guidelines have been followed

in the present case for arriving at the lowest tariff and for selection of the successful

bidder(s). However, SECI is advised that for issuance of RfS/bid documents with

such elaborate additional features & seeking participation of all the RE Projects rather

than any particular one, it would be more appropriate for SECI to approach the

Ministry of Power/Ministry of New & Renewable Energy for issuance specific

guidelines enabling SECI to issue such RfS/bid documents & conduct a bid process

thereunder rather than combining all the Guidelines under one RfS/bid documents

which, as we already noted above, have different project specific features/provisions

and combining them all in a single RfS/bid documents might not always be prudent. In

our view, the Petitioner should approach the Commission for adoption of tariff as per

the clear-cut provisions of specific Guidelines framed by the Government of India in

future.

17. The key milestones in the bidding process carried out by SECI were as under:

Sr. Event Date

1. RfS issued by SECI 1.8.2019
2 1st Set of Amendments to the RfS documents uploaded 28.10.2019
3 2nd Set of Amendments to the RfS documents uploaded 28.11.2019
4 3rd Set of Amendments to the RfS documents uploaded 6.1.2020
5 Last date of bid submission 15.1.2020
6 Opening of techno-commercial bids 21.1.2020
7 Opening of financial bids 30.1.2020
8 e-Reverse Auction conducted 31.1.2020
9 Issuance of Letters of Award to successful bidders 26.2.2020

Order in Petition No.235/AT/2022 Page 22

18. On 1.8.2019, SECI issued Request for Selection document, along with draft

PPA and PSA documents for setting up of 1200 MW ISTS-connected RE Projects

along with assured Peak Power supply. According to SECI, it did not publish the

notices in the newspapers as per the advisory of Ministry of Information and

Broadcasting, Government of India dated 17.5.2017 mandating e-publishing of

advertisements in the relevant portal. Accordingly, from 14.6.2018, SECI discontinued

the publication of tender notice in the newspaper. On 3.7.2018, SECI published

notification in the newspapers indicating that henceforth tenders of SECI would be

published in the website and not in newspapers.

19. The Petitioner has submitted that 36 organizations had participated in the pre-

bid meeting held for the RfS for 1200 MW RE Projects with assured peak power

supply.

20. As per Clause 3.1.1(b) of the Solar Guidelines, Clause 5.1 (b) of the Wind

Guidelines and Clause 6.1(b) of the draft Wind-Solar Hybrid Guidelines, the procurer

is required to inform the Appropriate Commission about the initiation of the bidding

process. SECI vide its letter dated 23.9.2019 had informed the Commission that it has

initiated the competitive bid process for selection of RE Power Developer for energy

supply from 1200 MW RE Power Projects along with assured Peak Power supply

under tariff-based competitive bidding on the basis of Solar Guidelines, Wind

Guidelines and Wind-Solar Hybrid Guidelines.

Order in Petition No.235/AT/2022 Page 23

21. The Bid Evaluation Committee (BEC) comprising of the following was

constituted for opening and evaluation of bids under RfS-No. SECI/C&P/HPD/ISTS-

VII/RFS/1200MW/082019 dated 1.8.2019:

Techno-
Offline and
commercial and
Online Techno-
Financial
Tender Department commercial and
evaluation and
Financial Bid
post-e-RA
Opening
recommendation
Selection of project Sh. ISK Reddy, Sh. ISK Reddy,
PS
Developers for setting up Manager Manager
12000 MW ISTS- Sh. Biblesh Sh. Pratik
Connected RE Projects Contracts Meena, Deputy Prasun, Manager
with assured Peak Power Manager (C&P) (C&P)
Supply in India (ISTS-VII)
SECI/C&P/HPD//ISTS- Sh. Ajit Sharma, Sh. Ajit Sharma,
VII/RFS/1200MW/082019 Finance Deputy manager Deputy Manager
Dated (finance) (Finance)

22. Last date of submission of bid was 15.1.2020 and the technical part of the bid

was opened on 21.1.2020. Response to RfS was received from 3 bidders, namely

Greenko Energies Private Limited, ReNew Solar Power Private Limited and HES Infra

Private Limited, offering an aggregate capacity of 1620 MW and all of them were

found to fully meet the technical criteria and consequently, qualified for opening of

financial bid. On 30.1.2020, financial bids of three technically qualified bidders were

opened on the ISN ETS- e-bidding portal in the presence of member of Bid

Evaluation Committee. Three bidders for aggregating 1200 MW were shortlisted for e-

reverse auction.

Order in Petition No.235/AT/2022 Page 24

23. The e-reverse auction was carried out on 31.1.2020 in the presence of the

members of BEC. After completion of e-reverse auction, the following were declared

as successful bidders:

Bidder’s Tariff Allotted

Sr.
Bidder Quantity (INR/ Capacity
No.
(MW) kWh) (MW)

1. Greenko Energies Private Limited 900 6.12 900

2. ReNew Solar Power Private Limited 600 6.85 300
Total 1200

24. Accordingly, on 26.2.2020, SECI issued Letter of Awards to the selected

bidders as under:

Off Peak Peak Power Awarded

S. Project ID &
Bidder Power Tariff Tariff Capacity
No location
(INR/kWh) (INR/kWh) (MW)
Village:
Pinnapuram, 800
Greenko Energies Dist. Kurnool,
1. Anhdra Pradesh 2.88 6.12
Private Limited
Saundati Taluk,
Dist. Belagavi, 100
Karnataka
Tondihal
ReNew Solar Village,
2. Power Private Yelburga Taluk, 2.88 6.85 300
Limited Dist. Koppal,
Karnataka
Total 1200

25. Relevant portion of one of the Letter of Award issued to ReNew Solar Power

Private Limited is extracted as under:

“Sub: Selection of Project Developers for Setting up of 1200MW ISTS-connected RE

Projects with assured Peak Power supply in India (OSTS-VII): Letter of Award for RE
Power Project of 300MW (Project ID: HPD-ISTS-VIIRSPPL-P-300KA)

*************

Order in Petition No.235/AT/2022 Page 25

 In reference to above and subject to the provisions of RFS, we confirm having
accepted your final offer concluded as a result of E-RA and issue this letter of award
as per the following details:

Allotted Project Project Sub-station Applicable Applicable Tariff

Project Capacity location details for Tariff (INR/kwh) (INR/kwh) in
ID (MW) connectivity words
Off- Peak Off- Peak
Peak Tariff Peak Tariff
Tariff Tariff
HPD- 300 Tondihal Koppal 220 Rs. Rs. Rupees Rupees
ISTS- Village, kV CTU 2.88/- 6.85/- Two and Six and
VII- Yelburga substation, Eighty- Eighty-
RSPPL- Taruk, Karnataka Eight Five
P1- Koppal Paise Paise
300KA District, only only
Karnataka

SECI shall purchase the power generated from the proposed ISTS-Connected RE Power
Project under the above scheme subject to the following terms and conditions as stated in
various documents referred above and briefly brought out hereinafter

1.0 The applicable tariff as mentioned above for power generated from the
proposed RE Project for the term of Power Purchase Agreement (PPA) to be entered
into between project Company or the Hybrid Power Developer (HPD)and M/s SECI for
the Project, shall be firm for the entire term of the PPA.

1.1 The minimum Energy Storage System (ESS) rated energy capacity installed
shall be equal to 150Mwh for the above Project.

1.2 The HPD will be free to avail fiscal incentives like Accelerated Depreciation,
Concessional Customs, Excise Duties, Tax holidays, etc. as available for such
projects. No claim shall arise on SECI for any liability if the HPD is not able to avail
fiscal incentives and this will not have any bearing on the applicable tariff.

1.3 The award of the above Project is submitted to the Guidelines including
amendments/ clarifications issued by Government of India and terms and conditions
of the RFS document including its clarifications / amendments / elaborations /
notifications issued by SECI.

1.4 No change in the controlling shareholding of the bidding Company shall be

permitted from the date of submission of response to RFS till the Execution of the
PPA. However, in case the project is being set up by a listed Company, this condition
will not be applicable. Controlling Shareholding (holding more than 50% of the voting
rights and paid up share capital in the Company) of the Project Company of the HPD
shall not change until one year after the COD of the Project, except with prior approval
of SECI. However, in case the project is being set up by a listed company, this
condition will not be applicable.

1.5 In case of companies having multiple promoters (but none of the shareholders
having more than 50% of voting rights and paid up share capital). It shall be

Order in Petition No.235/AT/2022 Page 26

 considered as a company under joint control. In such cases, the shareholding pattern
in the company as submitted at the time of bidding, shall be maintained for a period of
01 (one) year after COD.

1.6 The successful Bidder, is being a single company, shall ensure that its
shareholding in the SPV/project company executing the Power Purchase Agreement
(PPA), shall not fall below 51% at any time prior to 1 (one) year after the COD except
with the prior approval of SECI. In the event the successful bidder is a consortium,
then the combined shareholding of the consortium members in the SPV/project
company executing the PPA, shall not fall below 51% at any time prior to 1 (one)years
after COD, except with the prior approval of SECI. However, in case the Project is
being set up by a listed Company, this condition will not be applicable.

1.7 The HPD shall pay to SECI, Success Charges of Rs. 1 lakh/MW/project + 18%
GST within 30 days of issuance of this Letter of Award (LoA), in line with Clause 12,
Section-III of the RFS, towards administrative overheads, coordination with State
Authorities and others, DISCOM/STU/CTU, pre-commissioning and commissioning
expense. Performance Bank Guarantee (s) for s value of Rs 15 Lakh/MW shall be
submitted by the HPD within 30 days of issuance of Letter of Award or before signing
of PPA. Whichever is earlier, in line with Clause 11, Section-III of the RFS.

1.8 Prior to declaration of commissioning of first part capacity of the Project, the
HPD shall furnish a Payment Security Deposit (PSD) @ Rs. 5lakh/MW/Project, to
SECI through DD/NEFT/RTGS. This fund shall form part of the Payment Security
Fund maintained by SECI for the Projects. Modalities of operationalisation of the
Payment Security Deposit will be notified by MNRE at appropriate stage, though
necessary guidelines/orders. The above amount shall be credited to SECI pro-rata to
the part capacity being commissioned at that stage. In case the HPD is unable to
furnish the above amount prior to commissioning of the corresponding part -capacity,
SECI reserves the right to recover the same from the monthly energy payments made
to the HPD, along with interest @ SBI 1-year MCLR to be levied from the date of
commissioning of the date of recovery/due date of payment of invoices.

1.9 PPA will be executed between SECI and the HPD as per the breakup of the
cumulative Project capacity awarded to the Bidder. The HPD shall provide the project
breakup for the cumulative capacity quoted, in the Covering Letter (Format 6.1), which
may be changed by the HPD subsequent to issuance of LOA upto the date as on 30
days from issuance of LOA. In case of Wind-Solar Hybrid Projects, for an individual
Project, any modification in the rated capacities of wind and solar components in the
Project, shall be intimated to SECI within 30 days of issuance of LOA. Both the above
parameters will remain unchanged, thereafter. The PPA will remain in force for a
period of 25 years from the SCD or from the date of full commissioning of the projects,
whichever is earlier.

1.10 The HPD will have to submit the required documents as mentioned below to
SECI within 70 days from date of this LOA or before signing of PPA, whichever is
earlier. In case of delay in submission of documents beyond the timeline as
mentioned above, SECI shall not be liable for delay in verification of documents and
subsequent delay in signing of PPA.

1) Copy of the certificate of Incorporation of the Hybrid Power Developer.

Order in Petition No.235/AT/2022 Page 27

 2) The details of promoters and their shareholding in the HPD, duly certified by the
practicing Chartered Accountant/ Company Secretary in original at least 7 (seven)
days prior to date of their document submission (certificate date should be after
the date of LOA) along with latest documents filed with ROC).

3) Copy of the Memorandum of Association (MoA) of the HPD highlighting the object
clause related to generation of power/ Energy/ Renewable Energy/ Solar Power
plant development.

4) In case the project being executed by a Special Purpose Vehicle (SPV)

incorporated by successful bidder, such SPV shall be atleast 76% shareholding
subsidiary, in line with provisions of the RFS. Further, the Successful Bidder shall
submit a Board Resolution prior to singing of PPA with SECI, committing total
equity infusion in the SPV as per the provisions of RFS.

Further, the PPA shall be signed only upon receipt of the Success Charges and total
performance Guarantees of requisite value. The EMD submitted shall be released
only after receipt and successful verification of the total Performance Bank Guarantee
in the acceptable form.

1.11 SECI shall, have the right to verify original documents of the HPD for which
copies have been submitted from the date of submission of responses to RFS till
date, if required. PPA as per the format given along with RFS has to be signed within
90 days from the date of issue of LoA, if not extended by SECI. In case of
unavoidable delays on the part of the HPD in submission of requisite documents prior
to signing of PPAs or otherwise, the Effective Date of the PPA shall remain the date
as on 90th day from the issuance of LOA, irrespective of the date of signing of PPA. In
extraordinary cases of unavoidable delays on the part of signing of PPA. In
extraordinary cases of unavoidable delays of the date of signing of PPA. In
extraordinary cases of unavoidable delays on the part of SECI in signing the PPAs,
the Effective Date of the PPA shall then be the date of signing of PPA.

1.12 In case, the SECI offers to execute the PPA with the HPD and the selected
Bidder refuses to execute the PPA within the stipulated time period, the Bank
Guarantee equivalent to the amount of the EMD shall be encashed by SECI from the
Bank Guarantee available with SECI (i.e. either EMD or PBG) as liquidated damages
not amounting to penalty, and the selected Projects(s) shall stand cancelled and the
selected Bidder expressly waives off its rights and objections, if any, in that respect.

1.13 The HPD shall meet financial closure for the Project in line with clause 15
Section -III of the RfS document, within 12 (Twelve) months from the Effective Date of
the PPA. Accordingly, the HPD shall furnish the documents pertaining to compliance
of financial closure as per the above provisions.

1.14 The HPD/Project Company shall achieve commissioning of full capacity of the
Project within 18 months from the Effective Date of the PPA as per the conditions
stipulated in Clause 16, Section-III of the RfS and relevant articles of PPA. In case of
failure to achieve this milestone, liquidated damages not amounting to penalty shall
be levied on the HPD as per the above provisions….”

Order in Petition No.235/AT/2022 Page 28

26. Based on their requisition, SECI has signed the PSAs with buying utilities/

distribution licensees as under:

PSA
S. Date of PSA Applicable Tariff to Buying
Buying Utilities Capacity
No. signing Utility (Rs./kWh)
(MW)
ARTICLE 5: APPLICABLE
Damodar Valley TARIFF
1. 20.08.2021 200
Corporation
The Applicable Tariff under this
North Bihar Power
Agreement shall be paid in two
Distribution Company
parts, compressing Peak tariff and
Limited (NBPDCL),
Off-Peak tariff. The buying entity
South Bihar Power
shall be mandated to pay the Off-
2. Distribution Company 20.05.2022 210
Peak tariff of Rs. 2.88/kWh plus
Limited (SBPDCL) and
SECI’s Trading Margin of Rs.
Bihar State Power
0.07/kWh fixed for the entire Term
Holding Company
of this Agreement, for the energy
Limited (BSPHCL)
supplied by SECI during the off-
peak hours.

Additionally, from SCD and subject

Rajasthan Urja Vikas to the provision of the Article 6.7,
Nigam Limited, Jaipur the Buying Entity shall pay the
Vidyut Vitaran Nigam Peak Tariff of Rs. 6.12/kWh plus
3. Limited, Ajmer Vidyut 25.01.2022 490 SECI’s trading margin of Rs.
Vitaran Nigam Limited 0.07/kwh fixed for the entire term
and Jodhpur Vidyut of this Agreement, for the energy
Vitaran Nigam Limited supplied by SECI during the Peak
Hours.

ARTICLE 5: APPLICABLE
TARIFF
Electricity Department,
4. 22.12.2021 150 The Applicable Tariff under this
Government of Goa
Agreement shall be paid in two
parts, compressing Peak tariff and
Off-Peak tariff. The buying entity
shall be mandated to pay the Off-
Peak tariff of Rs. 2.88/kWh plus
SECI’s Trading Margin of Rs.
0.07/kWh fixed for the entire Term
Haryana Power of this Agreement, for the energy
5. 26.7.2022 150 supplied by SECI during the off-
Purchase Center
peak hours.

Additionally, from SCD and subject

to the provision of the Article 6.7,
the Buying Entity shall pay the

Order in Petition No.235/AT/2022 Page 29

 PSA
S. Date of PSA Applicable Tariff to Buying
Buying Utilities Capacity
No. signing Utility (Rs./kWh)
(MW)
Peak Tariff of Rs. 6.85/kWh plus
SECI’s trading margin of Rs.
0.07/kwh fixed for the entire term
of this Agreement, for the energy
supplied by SECI during the Peak
Hours.

27. In response to the specific query of the Commission regarding approval of the

PSAs by the respective State Commission, if any, SECI has submitted that in respect

of PSA with DVC, West Bengal Electricity Regulatory Commission vide order dated

30.5.2022 in Case No. PPA-116/21-22 has approved the PSA for purchase of 200

MW RE power to the extent to be utilized in the State of West Bengal subject to the

adoption of tariff by this Commission. Whereas, for approval of procurement of power

to the extent to be utilized in State of Jharkhand, Case No. 5 of 2022 filed by DVC

before the Jharkhand Electricity Regulatory Commission is presently pending. With

regard to PSA with Bihar Distribution licensees, Bihar Electricity Regulatory

Commission vide order dated 28.4.2022 in Case No. 21 of 2021 has approved the

proposal for procurement of 210 MW RE power subject to adoption of discovered

tariff along with PPA and other relevant document by this Commission. As to the PSA

with the Rajasthan Distribution licensees, Rajasthan Electricity Regularly Commission

vide order dated 12.5.2022 in Petition No. RERC/ 2010/2022 filed by Rajasthan Urja

Vikas Nigam Limited (‘RUVNL’) has directed that the appropriate Petition may be filed

before this Commission for adoption of tariff and has accordingly, granted liberty to

RUVNL to approach RERC thereafter. In respect of the PSA with Electricity

Department, Government of Goa, Joint Electricity Regulatory Commission vide

interim order dated 1.8.2022 in Petition No. 77/2022 has, inter-alia, held that the

Order in Petition No.235/AT/2022 Page 30

matter will be listed for hearing after filing of the copy of order by which this

Commission adopts the tariff under Section 63 of the Act. Whereas, in respect of PSA

with HPPC, Haryana Electricity Regulatory Commission vide order dated 18.7.2022 in

Case No. 28 of 2022 has approved the procurement of 150 MW RE power by HPPC.

28. As regards the PPAs, SECI has entered into PPA dated 2.2.2022 for 490 MW

with Greenko AP01 IREP Private Limited (Project Company of successful bidder,

Greenko Energies Private Limited), PPA dated 2.2.2022 for 200 MW with Greenko

AP01 IREP Private Limited (Project Company of successful bidder, Greenko Energies

Private Limited), PPA dated 7.7.2022 for 210 MW with Greenko AP01 IREP Private

Limited (Project Company of successful bidder, Greenko Energies Private Limited)

and PPA dated 31.8.2022 for 300 MW with Renew Surya Ojas Private Limited

(Project Company of successful bidder, Renew Solar Power Private Limited).

29. As per Clause 10.2 of the Solar Guidelines, Clause 12.2 of the Wind

Guidelines and Clause 13.2 of the draft/issued Wind-Solar Hybrid Guidelines, Bid

Evaluation Committee is required to certify that the bidding process and the

evaluation has been conducted in conformity with provisions of the RfS. SECI vide its

letter dated 18.2.2021 has certified that the process has been carried out in

conformity with the Guidelines issued by Government of India and no deviation was

taken from the Guidelines in the RfS documents. It has also been certified by SECI

that the bid evaluation has been conducted in conformity to the provisions of the RfS.

Relevant portion of the said conformity letter dated 18.2.2021 is extracted as under:

“With respect to the RfS No.SECI/C&P/HPD/ISTS-VII/RfS/ 1200MW/082019 dated

1.08.2019, it is hereby declared as follows:

Order in Petition No.235/AT/2022 Page 31

 1. After the conclusion of bid submission, the Evaluation Committee
constituted for evaluation of bids has conducted the techno-commercial as well
as financial bid evaluation in conformity to the provisions of the RfS.

2. Applicable Guidelines and amendments/clarifications thereof, if any,

issued by Government of India for the bidding process were followed in the
above tender and no deviation was taken from the guidelines in the RfS
document for the above tender.”

30. In the light of the above discussions, it emerges that selection of the successful

bidders and determination of tariff of the RE Projects have been carried out by SECI

through a transparent process of competitive bidding in accordance with Guidelines

issued by Ministry of Power and/or Ministry of New and Renewable Energy,

Government of India under Section 63 of the Act. Therefore, in terms of Section 63 of

the Act and based on the Petitioner`s letter dated 18.2.2021 to the effect that bidding

has been carried out as per the provisions of bidding Guidelines and RfS, the

Commission hereby adopts the individual tariff for the RE Power Projects, as agreed

to by the successful bidders, and for which PPAs have been entered into by SECI on

the basis of the PSAs with the distribution licensees, which shall remain valid

throughout the period covered in the PPAs and PSAs as under:

Off Peak Peak Power Awarded

Project
S.No. Bidder Power Tariff Tariff Capacity
Company
(INR/kWh) (INR/kWh) (MW)
Greenko Greenko AP01
1. Energies Private IREP Private 2.88 6.12 900
Limited Limited
ReNew Solar Renew Surya
2. Power Private Ojas Private 2.88 6.85 300
Limited Limited
Total 1200

31. Article 10.3 of the PPA provides as under:

“10.3 Payment of Monthly Bills

Order in Petition No.235/AT/2022 Page 32

 10.3.1 SECI shall pay the amount payable under the Monthly Bill/Supplementary Bill
by the Due Date to such account of the BPD, as shall have been previously notified by
the HPD in accordance with Article 10.3.2 below.

10.3.2 All payments required to be made under this Agreement shall also include any
deduction or set off for:

i) deductions required by the Law; and

ii) amount claimed by SECI, if any, from the HPD, will be adjusted from the
monthly energy payment. In case of any excess payment adjustment, 1.25%
surcharge will be applicable on day to day basis.

The HPD shall open a bank account (the "HPD's Designated Account') for all Tariff
Payments (including Supplementary Bills) to be made by SECI to the HPD, and notify
SECI of the details of such account at least ninety (90) Days before the dispatch of
the first Monthly Bill. SECI shall also designate a bank account at New Delhi ('SECI
Designated Account") for payments to be made by the HPD to SECI, if any, and notify
the HPD of the details of such account ninety (90) Days before the Scheduled
Commissioning Date. SECI and the HPD shall instruct their respective bankers to
make all payments under this Agreement to the HPD's Designated Account or SECI's
Designated Account, as the case may be, and shall notify either Party of such
instructions on the same day.”

32. Further, Article 10.4 of the PPA provides as under:

“10.4 Payment Security Mechanism

Letter of Credit (LC):

10.4.1 SECI shall provide to the HPD, in respect of payment of its Monthly Bills and/or
Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit
("Letter of Credit"), opened and maintained which may be drawn upon by the HPD in
accordance with this Article.

10.4.2 Subject to Article 10.4.1, not later than one (1) Month before the start of
supply, SECI through a scheduled bank open a Letter of Credit in favour of the HPD,
to be made operative from a date prior to the Due Date of its first Monthly Bill under
this Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall
be renewed annually, for an amount equal to:
i) for the first Contract Year, equal to the estimated average monthly billing;
ii)for each subsequent Contract Year, equal to the average of the monthly
billing of the previous Contract Year.
10.4.3 Provided that the HPD shall not draw upon such Letter of Credit prior to 30
days beyond the Due Date of the relevant Monthly Bill and/or Supplementary Bill, and
shall not make more than one drawal in a Month.

Order in Petition No.235/AT/2022 Page 33

 10.4.4 Provided further that if at any time, such Letter of Credit amount falls short of
the amount specified in Article 10.4.2 due to any reason whatsoever, SECI shall
restore such shortfall within fifteen (15) days.
10.4.5 SECI shall cause the scheduled bank issuing the Letter of Credit to intimate
the HPD, in writing regarding establishing of such irrevocable Letter of Credit.
10.4.6 SECI shall ensure that the Letter of Credit shall be renewed not later than its
expiry.
10.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be
borne.
10.4.8 If SECI fails to pay undisputed Monthly Bill or Supplementary Bill or a part
thereof within and including the date as on 30 days beyond the Due Date, then,
subject to Article 10.4.6 & 10.5.2, the HPD may draw upon the Letter of Credit, and
accordingly the bank shall pay without any reference or instructions from SECI, an
amount equal to such Monthly Bill or Supplementary Bill or part thereof, in accordance
with Article 10.4.3 above, by presenting to the scheduled bank issuing the Letter of
Credit, the following documents:
i) a copy of the Monthly Bill or Supplementary Bill which has remained unpaid
to HPD and;
ii) a certificate from the HPD to the effect that the bill at item (i) above, or
specified part thereof, is in accordance with the Agreement and has remained
unpaid beyond the Due Date;…”

33. Regulation 9 (10) of the Central Electricity Regulatory Commission (Procedure,

Terms and Conditions for grant of trading licence and other related matters)

Regulations, 2020 (hereinafter referred to as the “Trading Licence Regulations”)

provides as under:

“The Trading Licensee shall make payment of dues by the agreed due date to the
seller for purchase of the agreed quantum of electricity through an escrow
arrangement or irrevocable, unconditional and revolving letter of credit in favour of the
seller. Such escrow arrangement or irrevocable, unconditional and revolving letter of
credit in favour of the seller shall be equivalent to:
(a) one point one (1.1) times the average monthly bill amount (estimated average of
monthly billing amounts for three months or actual monthly billing amount for
preceding three months as the case may be) with a validity of one year for long term
contracts;
(b) one point zero five (1.05) times of contract value for short term contracts.”

34. The above provisions provide for payment security mechanism and the same

is required to be complied with by the parties to the present Petition. Accordingly, the

Order in Petition No.235/AT/2022 Page 34

provisions of Article 10.3 and Article 10.4 of the PPAs and Clause 10 of Regulation 9

of the Trading Licence Regulations shall be abided by all the concerned parties to the

present Petition. Accordingly, the prayer (a) of the petition is allowed in terms of the

above discussion.

35. The Petitioner has also prayed to approve the trading margin of Rs. 0.07/kWh

as agreed to by the distribution licensees in terms of the PSAs with the distribution

licensees. In this regard, Regulation 8(1)(d) of the Trading Licence Regulations

dealing with trading margin provides as under:

“For transactions under long term contracts, the trading margin shall be as
mutually decided between the Trading licensee and the seller:…”

36. The above provision gives choice to the contracting parties to mutually agree

on trading margin for long-term transaction.

37. However, proviso to Regulation 8(1)(d) of the Trading Licence Regulations

provides as under:

“8(1)(d) *************

Provided that in contracts where escrow arrangement or irrevocable, unconditional

and revolving letter of credit as specified in clause (10) of Regulation 9 is not provided
by the Trading Licensee in favour of the seller, the Trading Licensee shall not charge
trading margin exceeding two (2.0) paise/kWh.”

38. Regulation 8(1)(f) of the Trading Licence Regulations provides as under:

“For transactions under Back to Back contracts, where escrow arrangement or

irrevocable, unconditional and revolving letter of credit as specified in clause (10) of
Regulation 9 is not provided by the Trading Licensee in favour of the seller, the
Trading Licensee shall not charge trading margin exceeding two (2.0) paise/kWh.”

Order in Petition No.235/AT/2022 Page 35

39. The above two provisions are exceptions to the main provision as regards

trading margin. Distribution licensees have agreed to a trading margin of Rs.

0.07/kWh as agreed in the PSA, which is in consonance with Regulation 8(1)(d) of the

Trading Licence Regulations. Therefore, in case of failure by SECI to provide escrow

arrangement or irrevocable, unconditional and revolving letter of credit to the wind

generators, the trading margin shall be limited to Rs. 0.02/kWh as specified in the

Regulation 8(1)(d) and Regulation 8(1)(f) of the Trading Licence Regulations.

40. Prayer (b) of the Petitioner is answered accordingly.

41. It is expected that the Petitioner has complied with the provisions of RfS and

Guidelines. The Petitioner will comply with the provisions of bidding documents, PPA

and PSA for commissioning of the Project within the SCOD.

42. The Petition No. 235/AT/2022 is disposed of in terms of the above.

Sd/- sd/- sd/-

(P.K. Singh) (Arun Goyal) (I.S. Jha)
Member Member Member

Order in Petition No.235/AT/2022 CERC Website S. No. 08/2023 Page 36