Tariff Ceiling of ₹3.10/kWh Set for Maharashtra’s Solar Agricultural Feeder Program

MERC also approved the deviation in standard bidding guidelines


The Maharashtra Electricity Regulatory Commission (MERC) has approved the initiation of a district (circle) wise competitive bidding process for the procurement of solar power under Mukhyamantri Saur Krishi Vahini Yojana. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) granted this approval.

These solar PV projects will connect at the 11/22 KV level and will have an individual project capacity ranging between 2 MW and 10 MW.

MERC heard a petition filed by MSEDCL that sought approval for a deviation in the standard bidding guidelines for the long-term procurement of solar power under Mukhyamantri Saur Krishi Vahini Yojana. Under this petition, 2 MW to 10 MW capacity projects would connect to the distribution network, with a total of 1,400 MW connected through competitive bidding.

MSEDCL proposed that the installed district wise maximum capacity should be 50 MW (cumulative) for 26 circles, having a load greater than 100 MW. It also proposed that 25 MW be the maximum installed capacity for the remaining four circles having a load between 50 to 100 MW. MSEDCL had proposed that individual project capacity be between 2 MW and 10 MW for 26 circles and the other four would be connected at 11/22 KV level with the delivery point at the sub-station.

MSEDCL had also requested that the district wise competitive bidding will have a ceiling rate of ₹3.10 (~$0.042)/unit.

In its ruling, MERC had no objection to MSEDCL’s decision to create a ceiling rate of ₹3.10 (~$0.042)/unit. MERC also approved the increase in the maximum capacity limit from 50 MW to 100 MW for each district, and stated that the proposed solar power generation would count towards the fulfillment of MSEDCL’s renewable purchase obligation (RPO).

MERC also directed the MSEDCL to approach the commission for the adoption of a final tariff after the competitive bidding process concludes.

Previously, MSEDCL tendered 1 GW of solar PV projects to be developed under the Mukhyamantri Saur Krishi Vahini Yojana. This project tender by MSEDCL is the second phase under the state government’s program.