The Central Electricity Regulatory Commission (CERC) has issued a notification outlining the annual escalation rates and the discount rate to be used for the evaluation of bids for Round-The-Clock (RTC) power projects that combine grid-connected renewable energy with power from coal-based thermal power projects.
The notification, dated April 25, 2025, follows the guidelines issued by the Ministry of Power on July 22, 2020, and its subsequent amendment on November 3, 2020, regarding tariff-based competitive bidding for such RTC power procurement. These rates and parameters will be applicable for bid openings up to March 31, 2026.
The CERC has specified the following annual escalation rates for bid evaluation:
| Description | Annual Escalation Rates for Bid Evaluation (%) |
|---|---|
| Escalation rate for domestic coal | 3.25 |
| Escalation rate for domestic gas | 3.10 |
| Escalation rate for inland transportation charges for coal – Up to 125 Km distance | 11.20 |
| Escalation rate for inland transportation charges for coal – Up to 500 Km distance | 6.64 |
| Escalation rate for inland transportation charges for coal – Up to 1000 Km distance | 5.79 |
| Escalation rate for inland transportation charges for coal – Up to 2000 Km distance | 3.70 |
| Escalation rate for inland transportation charges for coal – Beyond 2000 Km distance | 3.17 |
| Escalation rate for inland transportation charges for gas | 6.45 |
| Escalation rate for imported coal | 2.91 |
| Escalation rate for imported gas | -4.81 (negative escalation/de-escalation) |
| Escalation rate for transportation of imported coal | -5.20 (negative escalation/de-escalation) |
| Escalation rate for transportation of imported gas | -5.20 (negative escalation/de-escalation) |
Furthermore, the CERC has notified the discount rate to be used for bid evaluation as 9.88%.
These notified rates and parameters are crucial for the fair and transparent evaluation of bids submitted for RTC power projects. They provide a standardized framework for assessing the long-term cost implications of different fuel sources and transportation distances, as well as the time value of money through the discount rate. This will enable procurers to make informed decisions in selecting the most economically viable projects that can ensure a reliable and continuous supply of power by integrating renewable energy with thermal power.
