The Kerala State Electricity Regulatory Commission (KSERC) has approved a reduced tariff of Rs 2.44 per kWh offered by the Kerala State Electricity Board (KSEB) for the procurement of 110 MW of solar electricity from TP Saurya, a wholly-owned Tata Power subsidiary.
KSEB had previously requested bids for 200 MW of solar energy in September 2020. The winning bidders in the auction were NTPC and Tata Power, which secured 90 MW and 110 MW capacity, respectively, at Rs 2.97 per kWh. KSEB has submitted a petition asking for permission to sign a power purchase agreement (PPA) with NTPC and Tata Electricity to obtain 90 MW and 110 MW of solar power, respectively, at Rs 2.97 per kWh, and to sanction a PPA with TP Saurya.
The state commission had previously authorised a PPA between KSEB and Tata Electricity Company for the purchase of 110 MW of solar power at Rs 2.97 per kWh. KSEB, on the other hand, pointed out that the rate discovered through the reverse auction to procure 200 MW of solar electricity was relatively high when compared to SECI’s other auctions. As a result, it issued an order to reconsider the electricity procurement procedure. The tariff of Rs 2.44 per kWh discovered in SECI’s Tranche-IX auction was taken into account, coupled with a trading margin of Rs 0.07 per kWh.