Last Updated on November 26, 2025 by Author
The Delhi Electricity Regulatory Commission (DERC) has approved the New Delhi Municipal Council’s (NDMC) plan to procure 200 MW of solar power from the Solar Energy Corporation of India (SECI) under the ISTS Solar Tranche-XI programme. The long-term agreement lasts for 25 years, with a tariff of INR 2.61/unit, plus an additional INR 0.07/unit as SECI’s trading margin.
NDMC approached the regulator, citing the need to meet rising electricity demand and comply with Renewable Purchase Obligation (RPO) norms as it works toward becoming a ‘100% Renewable and Green Municipality.’ It noted that SECI’s offer is competitive and aligned with India’s national clean-energy goals, including the target of achieving 500 GW of non-fossil fuel capacity by 2030.
During the hearings, the Commission questioned NDMC’s decision to enter into a Power Supply Agreement (PSA) with SECI at INR 2.61/unit, instead of opting for the lowest quoted tariff of INR 2.60/unit. In response, NDMC stated that the selected project, being developed by Avaada GJ Sustainable Pvt. Ltd., is significantly ahead in execution, with switchyard works completed and approximately 70% progress in civil and electrical construction. The developer aims for early commissioning by November 2025. In contrast, projects with the INR 2.60 tariff are expected to become operational only between August and November 2026, as their PPAs have not yet been finalised.
The DERC has highlighted that the Central Electricity Regulatory Commission (CERC) rules, notified in June 2025, make timing critical. Solar projects commissioned before June 2026 will be liable for only 25% of transmission charges. However, projects delayed beyond this date could face charges of 50% or more in subsequent years, significantly reducing the savings from lower tariffs.
Considering these circumstances, the Commission concluded that the L-2 bidder’s power would be ‘comparatively more economical over the long term,’ while also addressing NDMC’s urgent need to fulfil its annual RPO obligations. After carefully considering the reasoning, the regulator officially approved the procurement process and, consequently, dismissed the petition.
