HERC Approves 400 MW Renewable Power Deal with NHPC at INR 4.44/kWh

The Haryana Electricity Regulatory Commission (HERC) has approved the state’s procurement of 400 MW firm renewable power from NHPC Ltd at INR 4.44 per unit for 25 years, securing critical supply for peak hours and advancing green energy goals.

The order enables the Haryana Power Purchase Centre (HPPC) to sign a Power Supply Agreement (PSA) with NHPC by June 15 to lock in 50 percent transmission charge waivers under central guidelines, avoiding INR 1,200 crore in potential grid fees over the contract period.

It may be noted that Haryana Power Purchase Centre (HPPC) has filed a petition seeking HERC approval to procure 400 MW firm renewable power from NHPC’s solar-wind-storage hybrid projects at INR 4.44/kWh (including INR 0.07/kWh trading margin) for 25 years. The deal aimed to meet peak demand, fulfill renewable purchase obligations (RPO), and secure 50 percent transmission charge waivers by signing before June 15, 2025.

The solar-wind-storage hybrid power, sourced from projects across Rajasthan, Gujarat, and Karnataka, guarantees 90 percent supply during daily four-hour peak windows (5–10 AM and 6–11 PM), addressing Haryana’s widening electricity deficit. Developers face penalties of 1.5× tariff for shortfalls, ensuring reliability.

At INR 4.37/kWh (excluding NHPC’s INR 0.07/kWh trading margin), the tariff undercuts recent FDRE auctions by SECI (INR 4.48–4.56) and NTPC (INR 4.64–4.72), saving discoms an estimated INR 180 crore annually compared to market alternatives. HERC overruled initial concerns about NHPC’s trading margin, citing Ministry of Power guidelines and APTEL precedent.

The power will count toward Haryana’s 2026–27 Renewable Purchase Obligation (RPO) target of 33.01 percent, with 2.5 percent mandated from storage-backed projects. NHPC must commission all projects by June 2027 to retain transmission incentives. The Commission noted that the state faces a 3,717 MW deficit by 2034–35. The deal expands Haryana’s renewable portfolio to 9,437 MW by FY27, reducing coal dependence amid rising thermal generation costs.

"The Commission, in the larger interest of the electricity consumers as well as to enable Discoms to fulfil their RPO obligation associated with RE power with energy storage, has considered it appropriate to accord the approvals as sought in the present petition — i.e., source approval as well as approval of the draft Power Purchase Agreement (PPA) for the procurement of 400 MW Firm and Dispatchable RE power from ISTS-connected Renewable Energy (RE) Power Projects @ Rs 4.44/kWh including a trading margin of Rs. 0.07/kWh for a period of 25 years through NHPC power," said the Commission in this order.