CERC Adopts Tariffs For 2400 MW Solar-Plus-Storage Project Led By NHPC To Boost India’s Renewable Energy
Source：solarquarter
In a landmark step toward strengthening India’s renewable energy landscape, the Central Electricity Regulatory Commission (CERC) has approved the tariffs for a large-scale 2400 MW solar-plus-storage power project. Spearheaded by NHPC Limited as the intermediary agency, this project combines solar energy with advanced Energy Storage Systems (ESS) to ensure the delivery of reliable and firm renewable power to the national grid.
The project was initiated through a competitive bidding process for an initial 1,200 MW capacity, which drew considerable interest from major players in the renewable energy sector. Thirteen companies qualified for the final bidding rounds, and following an electronic reverse auction conducted in January 2025, six companies emerged as successful bidders. These include Onix Renewable Limited, Jindal India Renewable Energy Limited, NTPC Renewable Energy Limited, Kolar Solar Power Private Limited, ReNew Solar Power Private Limited, and Adani Renewable Energy Holding Nine Limited.
A unique feature of this tender was the “Greenshoe Option,” which allowed NHPC to double the project’s capacity by offering an additional 1,200 MW to the winning bidders. Most of the successful bidders opted for this option, agreeing to supply the extra capacity at the lowest discovered tariff. The final tariffs adopted by the Commission are highly competitive, ranging between ₹3.09 and ₹3.10 per unit (kWh).
The project’s design ensures that the power generated is “firm and dispatchable,” meaning it can supply electricity during peak demand hours, a critical requirement for distribution companies (DISCOMs). The integrated storage systems play a key role in this, helping manage the variability of solar energy and providing consistent power. Under the guidelines, the generators are required to ensure that 100% of the annual energy supplied comes from renewable sources. The Power Purchase Agreements (PPAs) for these projects will extend over 25 years, securing a long-term source of clean energy.
NHPC will act as a bridge between the power generators and the buying utilities. It will enter into back-to-back agreements with the DISCOMs to sell the power, managing the associated risks and ensuring smooth operations. For its role in facilitating the procurement and managing risks, NHPC is permitted to charge a trading margin of ₹0.07 per kWh, which could be reduced to ₹0.02 per kWh if certain payment security conditions are not met.
The Commission’s approval of these tariffs represents a significant milestone in India’s energy transition. By integrating large-scale storage with solar power, the project addresses one of the biggest challenges of renewable energy—its variability—making it a viable alternative to conventional fossil-fuel-based power sources. With the Letters of Award already issued, the projects are expected to be commissioned within 24 to 30 months from the signing of the formal agreements. Once operational, the 2,400 MW solar-plus-storage initiative will play a pivotal role in strengthening India’s green energy infrastructure and supporting the country’s long-term sustainability goals.
This development not only reinforces India’s commitment to renewable energy but also sets a benchmark for large-scale solar-plus-storage projects in the country, showcasing the potential of combining clean energy generation with advanced storage solutions to meet growing electricity demand reliably.