MERC Approves Tariff Proposed by MSEDCL for 500 MW of Wind Projects

MSEDCL had auctioned the 500 MW of grid-connected wind projects in March 2018

June 18, 2018


The Maharashtra Electricity Regulatory Commission (MERC) has approved the tariff proposed by Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) for long term procurement of 500 MW of wind power under non- solar renewable purchase obligations (RPO).

In March 2018, MSEDCL had auctioned the 500 MW of grid-connected wind projects to meet its non-solar RPO. The lowest quoted (L1) tariff quoted in the auction was ₹2.85 (~$0.043)/kWh. Two bidders, namely Adani Green Energy and KCT Renewable Energy Private Limited, had quoted the L1 tariff of ₹2.85 (~$0.043)/kWh to develop 75 MW of wind projects each. Inox Wind, Mytrah Energy, and Hero Wind Energy Private Limited quoted a tariff of ₹2.86 (~$0.044)/kWh. While Inox Wind won the bid to develop 50 MW, Mytrah Energy Private won the bid to develop 100 MW and Hero Wind Energy Private Limited won the bid to develop 75.60 MW.

MSEDCL had earlier asked for the Commission’s approval of Torrent Power’s full offered capacity of 146 MW but later went back to request the Commission for approval of Torrent Power’s bucket filling capacity of 124.4 MW only instead of the full offered capacity of 146 MW.

MSEDCL had then filed a petition on July 4, 2018 seeking approval for the adoption of tariff discovered in the e-reverse auction conducted on March 6, 2018.

In its letter dated June 14, 2018, the Commission has given approval to consider the proposed wind power generation towards fulfilment of its non-solar RPO.

It may also be noted that in an auction held by MSEDCL in May, lowest (L1) tariff of ₹2.71 (~$0.0401)/kWh was quoted by JLTM Energy India Private Limited to develop 20 MW. The auction was for the development of 1 GW of grid-connected solar photovoltaic (PV) projects in the state. This was the lowest solar tariff for a grid-connected solar PV project in Maharashtra. Mahoba Solar (UP) Private Limited (Adani) also matched the L1 tariff to develop 200 MW.

Earlier, Mercom reported that (MSEDCL)’s 1 GW grid-connected solar PV tender had been oversubscribed by 450 MW. The MSEDCL had retendered 1,000 MW of grid-connected solar PV projects to meet its Renewable Purchase Obligation (RPO) in April 2018.