Omnicore Weekly #235 - 28 November 2025

Dear Patrons & Readers,

Petition under Section 63 of the Electricity Act, 2003 for the adoption of tariff discovered through Competitive Bidding Process for procurement of power from the 760 MW Firm and Dispatchable Power (Assured Peak Power Supply) from ISTS-Connected Renewable Energy Power Projects as per the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid Connected Renewable Energy Power Projects with Energy Storage Systems, Ministry of Power, Government of India dated 09.06.2023 and its amendments thereof.

NTPC Limited,

Versus

Hexa Climate Solutions Private Limited, ACME Solar Holdings Limited, Avaada Energy Private Limited,

Background:

The Petitioner, NTPC Limited (hereinafter referred to as “the Petitioner”) had filed the present Petition under Section 63 of the Electricity Act, 2003 (herein referred to as “The Act”) for the adoption of tariff discovered through the Competitive Bidding Process for procurement of power from the 760 MW Firm and Dispatchable Power (Assured Peak Power supply) ISTS-Connected Renewable Energy Power Projects anywhere in India on a Built Own Operate Basis as per “The Guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid Connected Renewable Energy Power Projects with Energy Storage Systems” (hereinafter referred to as “Standard Bidding Guidelines) of the Ministry of Power (herein referred to as “MoP”), Government of India (hereinafter referred to as “GoI”) dated 9.6.2023 and its amendments thereof. The Petitioner has made the following prayers:

(a) Admit the present Petition;

(b) Adopt the Tariff Rate of Rs.4.69/kWh, Rs.4.70/kWh and Rs.4.70/kWh, at which the Petitioner will procure power from M/s Hexa Climate Solutions Private Limited for 300 MW, M/s ACME Solar Holdings Limited for 400 MW, & M/s Avaada Energy Private Limited for 60 MW respectively, discovered through competitive bidding carried out by the Petitioner;

(d) Pass such other order (s) as may be deemed fit and proper in the facts and circumstances of the present case

2. The Petitioner has mainly submitted as under:

(a) The Petitioner has been designated as the Renewable Energy Implementing Agency (hereinafter referred to as “REIA”). The Ministry of Power, Government of India notified “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm and Dispatchable Power from Grid Connected Renewable Energy Power Projects with Energy Storage Systems” vide Gazette Resolution No. 23/03/2023-R&R dated 9.6.2023. NTPC, acting as the REIA, has invited proposals for setting up the ISTS-connected Renewable Energy Power Projects on a “Build Own Operate” basis, for an aggregate capacity of 1200 MW anywhere in India on the land to be identified and arranged by the Bidder.

(b) The Petitioner issued a Request for Selection (hereinafter referred to as “RfS”) on 9.6.2023 for the selection of the Renewable Energy Power Developers to supply the 1200 MW of Firm and Dispatchable Power from ISTS-Connected Renewable Energy (RE) Power Projects with the Energy Storage System under Tariff-based Competitive Bidding. Online bids for selection of RPGs were invited vide IFB (Invitation for Bids) dated 31.5.2024 on Single Stage Two Envelope (Envelope-I: Technical Bids & Envelope-II: financial bids) followed by reverse auction on international competitive bidding ICB basis.In response to the RfS, three bids of aggregate capacity of the 760 MW were found eligible for e Reverse Auction (hereinafter referred to as “e-RA”) against the tendered capacity of 1200 MW, and the same have been found eligible for issuing the Letter of Award (hereinafter referred to as “LoA”) with a total aggregate capacity of 760 MW. On 6.11.2024, e-RA was conducted on the ISN ETS e-bidding portal. After the conclusion of the e-Reverse Auction process, on 6.11.2024, NTPC issued a LoAs to the Selected Bidders for a total awarded capacity of 760 MW.

(c) In view of the above, the Petitioner has prayed for the adoption of a tariff for the procurement of the 760 MW ISTS-connected Firm and Dispatchable Power from Renewable Power Projects with Energy Storage System (Assured Peak Power Supply) discovered through a competitive bidding process carried out by the Petitioner. The Petitioner has further prayed to approve a trading margin of Rs. 0.07/kWh to be recovered from the distribution companies as specified in the Guidelines. Hearing dated 11.3.2025 3. The matter was admitted on 11.3.2025, and the notice was issued to the parties to file the replies and rejoinders. Reply on Behalf of Respondent No. 2 i.e., ACME Solar Holdings Limited

4. The Respondent, vide its reply dated 19.3.2025, has mainly submitted as under:

(a) ACME Solar Holdings Limited (hereinafter referred to “ASHL”), was declared a successful bidder pursuant to the tariff-based competitive bidding process conducted by NTPC under the Guidelines issued by the MoP. The bidding process was carried out in accordance with Section 63 of the Act.

(b) The bidding framework was structured to ensure discovery of the most efficient tariff for procurement of Firm and Dispatchable Renewable Energy Power (Assured Peak Power Supply) from ISTS-connected renewable projects on a Build-Own-Operate basis, while achieving cost efficiency, reliability of supply, and compliance with the Renewable Purchase Obligation (RPO) and Storage Purchase Obligation (SPO) requirements of the procurers in line with the National Renewable Energy Policy.

(c) NTPC has issued a LoA in favour of the ACME for development and supply of the 400 MW of Firm and Dispatchable Power (Assured Peak Power Supply) from ISTS-connected renewable energy projects across India on a Build-Own-Operate basis, pursuant to the transparent competitive bidding process. The Power Purchase Agreement (hereinafter referred to as “PPA”) and Power Sale Agreement (hereinafter referred to as “PSA”) are under execution in accordance with the Guidelines and bidding documents, which shall govern the rights and obligations of the parties.

(d) Expeditious adoption of the tariff is critical to ensure timely project execution, as tariff adoption under Section 63 of the Act, as it is a statutory requirement and a condition precedent under the draft PPA. Delay in tariff adoption, could adversely affect project activities, whereas prompt approval would provide financial certainty and regulatory clarity, thereby facilitating adherence to implementation timelines and advancing national renewable energy objectives.

(e) The tariff must be adopted expeditiously and such adoption would be in line with the statutory scheme and the policy intent of ensuring transparent, cost-effective, and competitive procurement of renewable energy, thereby promoting investor confidence and facilitating timely implementation of renewable energy projects.

Highlights from the week of
21 November 2025 to 28 November 2025