Maharashtra’s New Wind-Solar Hybrid Tender Asks Bidders to Set Procurement Limit

Upper tariff ceiling set at ₹2.75/kWh


The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a one of a kind wind-solar hybrid tender which gives the developers freedom in project development. The state distribution company has set ₹2.75(~$0.039)/kWh as the upper tariff ceiling for this tender, calling interested parties to submit their bids and the capacity they want to develop.

For this project, the MSEDCL will conduct a two-stage tendering process. The minimum capacity quoted by a single bidder must be 100 MW. Moreover, according to the MSEDCL, the maximum capacity quoted by a single bidder will be the capacity that will then be put out for auction. The bid-submission deadline is February 1, 2019.

The MSEDCL wants to procure power from these projects to meet its renewable purchase obligation (RPO).

Maharashtra has identified 277.32 hectares of land for the development of these wind-solar hybrid projects. The land is owned by the Maharashtra Energy Development Agency (MEDA). The MSEDCL will enter 25-year long power purchase agreements (PPAs) with the successful bidders.

This tender has been issued after getting approved from the Maharashtra Electricity Regulatory Commission (MERC). In December 2018, the commission had approved the competitive bidding process for the long-term procurement of power from wind-solar hybrid projects in the state.

Recently in the first mega solar-wind hybrid auction conducted in the country by the Solar Energy Corporation of India (SECI), a tariff of ₹2.67 (~$0.03794)/kWh emerged as the lowest (L1) one.

In May 2018, the MNRE announced new wind solar hybrid policy which aims at providing a framework for the expansion of grid-connected wind-solar hybrid systems in the country. The main objective of the policy is to provide a framework for promotion of large grid connected wind-solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability. The policy also aims at encouraging new technologies, methods and way-outs involving combined operation of wind and solar PV projects.