The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company’s (MSEDCL) proposal to procure 150 MW of solar power at ₹3.3 (~$0.040)/kWh from projects under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY).

The Commission has also allowed the solar power procured from these projects to count towards meeting MSEDCL’s solar Renewable Purchase Obligations (RPO).

Background

MSEDCL had sought approval to adopt a tariff for the long-term procurement of 150 MW solar power from 2 MW to 10 MW capacity projects connected to the distribution network.

Initially, MSEDCL had a ceiling tariff of ₹3.30 (~$0.040)/kWh for decentralized projects under MSKVY, which was later revised to ₹3.10 (~$0.038)/kWh.

However, the revised tariff received a poor response, leading MSEDCL to conduct a tender without a ceiling tariff. The resulting bids were higher at ₹4 (~$0.048) – ₹4.1 (~$0.05, prompting MSEDCL to reintroduce a tender with a ceiling tariff of ₹3.30 (~$0.040)/kWh.

Under the new tender, MSEDCL received one bid with a capacity of 150 MW, which was technically qualified. The successful bidder, NACOF, submitted the bid in consortium with Nithin Sai Construction and Unipaam Organics.

Commission’s analysis

The Commission acknowledged MSEDCL’s efforts to address the poor response by reintroducing the tender with a ceiling tariff.

The regulator directed MSEDCL to provide details of the successful bidder’s organization and its expertise in project implementation. MSEDCL confirmed that the bidder, NACOF, had been selected for a 106 MW solar project under the PM-KUSUM scheme, although it is yet to be commissioned.

Considering MSEDCL’s verification of the successful bidder’s capability, the Commission approved the tariff of ₹3.30 (~$0.040)/kWh on a long-term basis for 25 years.

Last November, MERC allowed MSEDCL to procure 132.75 MW of solar power on a long-term basis at ₹3.10 (~$0.038)/kWh tariff.

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