CERC Adopts Tariff for Solar Power Projects under MOP’S Flexibility Scheme for DVC

09.03.2024

The Central Electricity Regulatory Commission (“CERC”) by its Order dated 05.03.2024 in a Petition filed by Damodar Valley Corporation (“DVC”) under Section 63 of the Electricity Act, 2003 has adopted the tariff discovered through Competitive Bidding Process for selection of solar power developers in order to set up 500 MW ISTS-connected Solar PV Power projects in India under TBCB route under “Scheme for Flexibility in generation and scheduling of Thermal/Hydro power stations and Implementation of trajectory for replacement of Thermal Energy with Renewable Energy” (“Flexibility Scheme”).

The Ministry of Power, Government of India (“MoP”) through a series of directives/guidelines, launched the Flexibility Scheme for bundling of Renewable Energy, by substituting part of costlier thermal/hydro energy. Notably, Clause 3.3 of said Scheme was revised to allow a Generating Company under Section 62 of the Act (including DVC) or its subsidiary to establish a Renewable Energy (“RE”) Power Plant through tariff based competitive bidding process under Section 63, provided that, the bids are called by a Central Government approved third party, i.e., a nominated Bid Process Co-ordinator.

In view of the same, CERC after ensuring that the bids were called and the tariff was discovered as per the Flexibility Scheme and the TBCB guidelines, in a transparent manner by the nominated Bid Process Co-ordinator, was pleased to adopt the tariff for procurement of RE Power by replacing the Thermal Power generated by DVC.

Our Managing Partner, Mr. Shri Venkatesh, assisted by Mr. Bharath Gangadharan, Senior Associate and Mr. Kartikay Trivedi, Associate, represented DVC in the aforesaid proceedings.

The said Order dated 05.03.2024 can be accessed here.