Power regulator refuses to fix trading margin for SECI
National electricity regulator Central Electricity Regulatory Commission (CERC) has refused to approve the trading margin of 7 paise/unit to the Solar Energy Corporation of India (SECI), which is the nodal agency for implementing central government’s renewable energy projects across the country.
In its latest orders for approving the tariffs discovered in the recent solar and wind power auctions, CERC said that it is not in its purview to fix trading margin for long-term transactions, and “it is upto the contracting parties to mutually agree on trading margin”.
The decision can be detrimental for SECI which relies majorly on trading margins for being the aggregator of renewable energy. Under this model, SECI supplies power to a number of states from solar and wind plants owned by other developers, earning a trading margin of Rs 0.07/unit from such transactions.
