Maharashtra Approves Upper Tariff Ceiling of ₹2.75/kWh for Wind-Solar Hybrid Projects

The state commission was reviewing the proposals put forward by the MSEDCL


The Maharashtra Electricity Regulatory Commission (MERC) has approved the competitive bidding process for long-term procurement of power from wind-solar hybrid projects in the state.

The bidding guidelines were proposed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) so it could procure power from these projects to meet its renewable purchase obligation (RPO).

The MSEDCL had sought MERC’s approval to conduct a two-stage tendering process, in order to initiate competitive bidding process to procure power from wind-solar hybrid projects on long-term basis to be established on the Maharashtra Energy Development Agency (MEDA)’s land. The land will be provided on lease to the MSEDCL. It had requested the commission to also consider the procured power from these projects for meeting its respective solar and non-solar RPO requirement.

The MSEDCL had also proposed a upper tariff ceiling of ₹2.75 (~$0.039)/kWh and a PPA tenure of 25 years.

While examining the submission made by MSEDCL, MERC observed that MSEDCL had taken Solar Energy Corporation of India (SECI) rates as a reference to arrive at the ceiling rate, the tender documents in both the cases are not the same. Keeping this in view and in absence of generic tariff for wind-solar hybrid projects, CERC approved the ceiling tariff of ₹2.75 (~$0.039)/kWh.

The MERC, in its order, noted that in the bidding documents, MSEDCL has provided provisions to comply with MERC’s Forecasting and Scheduling Regulations.

Regarding the bidding documents, the commission stated, “For procurement of power from wind-solar hybrid projects through competitive bidding, there are no standard procedural documents, MSEDCL has referred to the standard bidding documents of procurement through competitive bidding from solar and wind projects and the Wind-Solar Hybrid Policy issued by Ministry of New and Renewable Energy (MNRE). Under these circumstances, such variations from the reference documents shall not be considered as deviation rather they are altogether a new set of documents which shall act as a reference for future procurement from similar technology.”

The MERC approved the initiation of competitive bidding process, the two-stage tendering process, and that the procurement of such power from wind-solar hybrid projects will be utilized for meeting MSEDCL’s non-solar and solar RPO requirement.

The state commission also approved the ceiling tariff of ₹2.75 (~$0.039)/kWh and a PPA tenure of 25 years. The MERC also stated that it has no objection to the RfS and PPA documents prepared by the MSEDCL in absence of a standard bidding document.

Recently, the MERC, at the behest of MSEDCL, approved the competitive bidding process for long-term procurement of 1 GW power from floating solar projects which will be established on the state’s Ujjani Dam.

Prior to that, the commission also approved PPAs for grid-connected solar projects totaling 235 MW.

Image credit: Vestas

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.