CERC Adopts Tariffs for SECI’s 1.2 GW ISTS-Connected Wind Auction

The Central Electricity Regulatory Commission (CERC) has adopted the tariffs discovered in the Solar Energy Corporation of India Limited’s (SECI) auction for 1,200 MW of wind power projects connected to the Inter-State Transmission System (ISTS). The order, passed on 14 October 2026 in Petition No. 179/AT/2026, covers seven developers whose winning bids range from ₹3.67 to ₹3.69 per kWh. With the tariffs adopted and the entire capacity already tied up with buyers, the projects under SECI’s Wind Tranche-XIX can now move towards execution.

Background of the Tender

SECI issued the Request for Selection (RfS) for Tranche-XIX on 15 October 2025 under reference number SECI/C&P/IPP/12/0013/25-26. The bidding was conducted under the Ministry of Power’s tariff-based competitive bidding guidelines for wind power dated 26 July 2023. The tender was originally floated for 600 MW and was enlarged to 1,200 MW through Amendment-01, issued by SECI in December 2025. Projects could be located anywhere in India and are to be developed on a build-own-operate basis, with power supplied to SECI under long-term Power Purchase Agreements (PPAs).

Online bid submission closed on 15 December 2025, and bids were opened on 18 December 2025. According to SECI’s result, bids totalling 3,104 MW were received against the 1,200 MW on offer, and 3,004 MW was shortlisted for the electronic reverse auction (e-RA) held on 4 February 2026. SECI issued Letters of Award to the successful bidders on 10 February 2026 and published the results on its website on 16 February 2026.

Winning Bidders and Discovered Tariffs

The seven selected developers were allocated capacities between 50 MW and 300 MW, together accounting for the full 1,200 MW:

K.P. Energy Limited quoted the lowest tariff of ₹3.67 per kWh. Four developers secured a combined 630 MW at ₹3.68 per kWh, while the remaining three were awarded 570 MW at ₹3.69 per kWh. The capacity-weighted average tariff works out to roughly ₹3.68 per kWh, and the spread of just two paise between the lowest and highest bids reflects a closely contested auction.

Power Sale Arrangements

To enable the sale of electricity from these projects, SECI, acting as the intermediary procurer, has signed back-to-back PPAs with all seven developers and Power Sale Agreements (PSAs) with two state utilities. GRIDCO Limited, Odisha, signed a PSA for 600 MW on 24 March 2026, and Uttar Pradesh Power Corporation Limited (UPPCL) signed for the remaining 600 MW on 30 March 2026.

Because the complete capacity is backed by executed agreements, the adoption is not linked to any further contracting condition. This differs from CERC’s order of the same date on SJVN Limited’s 600 MW Wind-3 tender, where tariffs of ₹3.64–3.65 per kWh were adopted subject to SJVN executing the PSA with UPPCL, which was still in process at the time of the order.

CERC’s Findings on the Bidding Process

SECI filed the petition under Section 63 of the Electricity Act, 2003, which requires the Commission to adopt tariffs determined through a transparent process of bidding in line with guidelines issued by the Central Government. After examining the bidding documents, the conduct of the e-RA and the certification of the evaluation process, CERC concluded that the selection was carried out in accordance with the applicable guidelines. The Commission accordingly adopted the individual tariffs agreed to by the successful bidders, for which PPAs have been signed by SECI on the basis of the PSAs with the distribution utilities.

Trading Margin Linked to Payment Security

SECI also sought approval of a trading margin of ₹0.07 per kWh on power sold to the buying utilities. CERC clarified that, under its Trading Licence Regulations, the parties to a long-term transaction may mutually agree on the trading margin, provided the prescribed payment security is in place for generators. This security must take the form of an escrow arrangement or an irrevocable, unconditional and revolving letter of credit in favour of the wind power developers.

Where SECI does not provide such security, the trading margin will be capped at ₹0.02 per kWh. The direction ties the intermediary’s earnings directly to payment assurance for developers, an important factor for project financing and bankability.

Significance for Buying States

For Uttar Pradesh, the order marks progress in sourcing wind energy from outside the state to meet its renewable purchase obligations. Read together with the SJVN order, 1,200 MW of the 1,800 MW covered by the two decisions is linked to UPPCL’s procurement plans, although only the SECI share is fully contracted at present. For Odisha, the 600 MW allocation through GRIDCO adds a significant block of long-term wind power to its supply portfolio.

Outlook

With the regulatory approval in place, the seven developers will now proceed with land acquisition, grid connectivity, financial closure and construction in line with the timelines under their PPAs. SECI’s wind pipeline is also expanding, as it has already issued an RfS for another 1,200 MW of ISTS-connected wind projects under Tranche-XXI on 7 October 2026. The steady flow of central wind auctions, supported by timely tariff adoption, is expected to strengthen inter-state trade in wind power and help non-windy states meet their renewable energy commitments.

Official Sources

1. CERC Order in Petition No. 179/AT/2026 (SECI Wind Tranche-XIX), dated 14.10.2026: https://cercind.gov.in/2026/Orders/179-AT-2026.pdf
2. CERC Order in Petition No. 234/AT/2026 (SJVN Wind-3), dated 14.10.2026: https://cercind.gov.in/2026/Orders/234-AT-2026.pdf
3. SECI Tender Details: RfS for 1200 MW ISTS-Connected Wind Power Projects (SECI-Tranche-XIX): https://seci.co.in/tender-details/YmB1
4. SECI Amendment-01 to the Wind Tranche-XIX RfS: https://www.seci.co.in/uploads/tenders/Amendment-01_Wind-Tranche-XIX-final_upload.pdf
5. SECI Result: 1200 MW Wind Tranche-XIX: https://seci.co.in/uploads/tenders/corrigendums/SECI_Wind-_1200_MW_(Tranche-XIX)_result_website_upload.pdf
6. CERC Regulations (including Trading Licence Regulations, 2020): https://cercind.gov.in/regulations.html
7. SECI RfS for 1200 MW ISTS-Connected Wind Power Projects (SECI-Tranche-XXI), dated 07.10.2026: https://www.seci.co.in/uploads/tenders/RfS_for_1200_MW_Wind_Tranche-XXI.pdf