MSEDCL May Procure Wind Power from Projects with Expired Agreements to Fulfil its RPO

MERC will hear the petition on March 26, 2019

March 18, 2019


The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has filed a petition with the  Maharashtra Electricity Regulatory Commission (MERC) seeking its approval to procure power from wind projects whose energy purchase agreements (EPAs) have expired with the MSEDCL.

In the petition, MSEDCL has asked the commission to allow it to procure power from the wind generators of group II, III, and IV whose EPAs with MSEDCL have expired at the tariff of ₹2.52 (~ $0.036)/kWh for its balance of useful life.

It has also asked that these power procurements should be counted towards the fulfillment of renewable purchase obligation (RPO) of MSEDCL.

The commission will hear the petition on March 26, 2019, and it has asked the Maharashtra Energy Development Agency (MEDA) to be a respondent.

Recently, MERC directed MSEDCL to pay dues to three wind project developers- Hindustan Petroleum Corporation Limited, Shah Promoters & Developers and Mahanagar Developers.

In October 2018, MERC had directed the MSEDCL to pay ₹41.0464 billion (~$0.56 billion) in dues to wind power generators in Maharashtra. The petition was regarding outstanding payments due from MSEDCL for sale of wind energy and interest on delayed payments under various wind energy purchase agreements entered by the members of Windmill Owners Welfare Association of India (WOWAI).

In December 2018, MSEDCL issued a tender to procure 500 MW of wind power from projects in the state that are already in operation or have been commissioned. The MSEDCL has issued the procurement tender to meet its non-solar renewable purchase obligation. MSEDCL has fixed ₹1.97 (~$0.03)/kWh as the ceiling tariff for this tender. The distribution company will enter eight-year power purchase agreements with the successful bidders.

According to Mercom’s India Solar Project Tracker, Maharashtra has a large-scale solar capacity of 1.3 GW to date and also has a project pipeline of 1.4 GW.