CERC Approves Trading Margin of INR 0.07/kWh in SECI's Petition

In case the Solar Energy Corporation of India (SECI) fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to solar generators, the trading margin will be limited to INR 0.02/kWh.

November 08, 2023. By News Bureau

The Central Electricity Regulatory Commission (CERC) has granted approval for the trading margin of INR 0.07/kWh, as agreed upon by distribution companies Brihanmumbai Electric Supply and Transport and Tripura State Electricity Corporation in Power Supply Agreements for capacities of 334 MW and 100 MW, respectively.

However, there's a caveat – in case the Solar Energy Corporation of India (SECI) fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to solar generators, the trading margin will be limited to INR 0.02/kWh.

In a related petition, the CERC has declined to provide relief to Adani Green concerning 'Change of Law' events due to procedural issues. This development comes after Adani Green was a respondent in a petition filed by SECI, which was related to the adoption of tariffs. Originally filed by SECI, the petition sought the adoption of a tariff for 334 MW of ISTS-connected solar projects.

The main bid winners for these projects were Adani Green and Azure Power, who were set to supply solar power at INR 2.54/unit to Brihanmumbai Electricity Supply and Transport (BEST) and Tripura State Electricity Corporation.

Developers in the solar industry are facing additional challenges due to the imposition of increased GST rates and Basic Customs Duty on the imports of inverters and solar trackers, leading to higher project costs.

This regulatory decision and its implications have stirred discussions within the renewable energy sector, as stakeholders navigate the changing landscape of solar power generation in India.

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