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CERC Approves Rs4.01/kWh Tariff for SECI’s 100 MW Solar + 40 MW/120 MWh BESS Project in Chhattisgarh

The Central Electricity Regulatory Commission (CERC) has approved a levelized tariff of Rs4.01/kWh for Solar Energy Corporation of India’s (SECI) 100 MW solar power project with a 40 MW/120 MWh battery energy storage system (BESS) in Rajnandgaon, Chhattisgarh. The tariff, applicable for 25 years from February 1, 2024, reflects adjustments for a Goods and Services Tax (GST) hike and land-related changes that raised project costs. Chhattisgarh State Power Distribution Company (CSPDCL) has been directed to procure power at this rate.

The project was conceived in 2019 as a pilot to demonstrate large-scale storage feasibility, with Tata Power Solar as EPC contractor. Initially capped at Rs4/kWh citing a GST increase from 5% to 12% (adding Rs370 million) and extra land-related expenses. CSPDCL opposed the claim, arguing inflated costs, project delays, and overstated consumption.

CERC’s review found that GST hikes qualified as a “change in law” event and allowed cost recovery. It also accepted land expenditure, though at a reduced level. Applying a normative 70:30 debt-equity ratio, the Commission set a return on equity at 16.9% for the first 20 years and 21.52% thereafter. It also acknowledged pandemic-related and land handover delays as valid reasons. Ultimately, the approved tariff was fixed at Rs4.01/kWh, balancing project viability with consumer interests.