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CERC Approves Rs4.01/kWh Tariff for SECI’s 100 MW Solar-plus-Storage 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 project with a 40 MW/120 MWh battery energy storage system (BESS) at Rajnandgaon, Chhattisgarh. The tariff will apply for 25 years from the project’s commercial operation date, February 1, 2024.

The project was conceived in 2019 under an MoU with the Chhattisgarh State Power Distribution Company (CSPDCL) to demonstrate large-scale solar-plus-storage feasibility. A power purchase agreement (PPA) was signed in 2020 with a ceiling tariff of Rs4/kWh. However, cost escalations led SECI to seek a higher tariff. Key factors included the GST hike on renewable devices from 5% to 12%, which added over Rs370 million to costs, and additional civil works from land changes.

While CSPDCL opposed the claims, citing delays, inflated costs, and an unfavorable debt-equity ratio, CERC ruled in favor of SECI on major issues. It allowed recovery of GST and land-related expenses, accepted technical justifications for auxiliary consumption, and considered commissioning delays as linked to land handover and pandemic disruptions.

Applying tariff regulations, CERC finalized the tariff at Rs4.01/kWh, ensuring cost recovery while keeping within regulatory limits. CSPDCL has been directed to procure power from the project at this rate, marking a key milestone for India’s solar-plus-storage deployment.