Sourcing Power from Multiple Generators for Open Access not Permissible

MSEDCL had denied open access to GIE after which the matter was taken up by MERC


The Maharashtra Electricity Regulatory Commission (MERC) has dismissed a petition filed by G.I. Energies (GIE) against the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for not signing the energy purchase agreement (EPA) for the purchase of power at a preferential tariff for long term basis.

G.I Energies, in its petition, mentioned that it had applied to MSEDCL  to grant open access for third party consumption. However, MSEDCL denied the permission to GIE, citing a revision of the guidelines for granting open access.

After being denied the permission, GIE wrote to MSEDCL again, expressing its interest to enter into an agreement with MSEDCL for the long-term sale of power and offered to sell power to MSEDCL at preferential tariff.

After making the offer to MSEDCL, GIE received a communication from MERC that directed MSEDCL to process its application to grant open access. Therefore, GIC once again requested MSEDCL to grant open access, while withdrawing the offer for the long-term sale of power.

But MSEDCL once again rejected granting the permission to GIE. In its order, MSEDCL said, “The MERC (Distribution Open Access) Regulations, 2005 provide for open access from a (one) generating company only. It is to inform that open access permission for sourcing power from multiple generators cannot be granted.”

GIE in its reply said that regulations do not bar an open access consumer from purchasing wind power from multiple generators. The option rests with the consumer as to whether supply is to be availed from one single generator or multiple generators, unless there is a specific provision disallowing the open access through more than one source.

After the denial of open access for the second time, GIE opted to revive the proposal for the long-term sale of power to MSEDCL and enquired about the applicable tariff. Subsequently, it expressed its interest to sell power to MSEDCL under a long-term EPA. MSEDCL then informed GIE that the competent authority had accepted its proposal and requested GIE to submit the draft EPA along with documents in a timely manner.

After the consent for the execution of long term EPA, GIE injected power into the grid of MSEDCL.  However, MSEDCL then cancelled the offer for the EPA.

In its plea, GIE also said that MSEDCL has enjoyed the wind power fed into the grid, sold it to its consumers and realized the revenue for the energy injected by GIE during this time.

MSEDCL, however, denied the submission and allegation of GIE. It said that GIE never submitted the draft EPA along with all relevant documents to the office per the required format. Therefore, MSEDCL again cancelled the offer for long term EPA, as there was no executable contract with GIE in place.

MSEDCL stated the energy injected by GIE was without any valid contract or permission, so no payment can be made for the injected power. Additionally, MSEDCL claimed GIE injected unauthorised energy into the system and polluted its power grid by destabilizing the system.

In its ruling, MERC stated that MSEDCL’s denial of open access permissions to GIE on two occasions cannot be grounds for GIE to seek direction against MSEDCL for signing a long-term EPA.

Regarding the proposed long-term EPA between GIE and MSEDCL, MERC noted that GIE did not submit the relevant documents and therefore no valid EPA materialized between MSEDCL and GIE at any stage.

Recently, another ruling by MERC clarified that generators cannot use both open access and net metering simultaneously. The commission also reiterated that benefits of net-metering are limited to rooftop solar installations of only up to 1 MW. For generators who have project capacities of 1 MW and above, open access is the way to go. MERC was responding to a petition filed by CleanMax Solar to grant net metering permission for a 991 kW rooftop solar photovoltaic (PV) project at Asahi India Glass Limited (Asahi) situated at MIDC- Taloja, Raigad, Maharashtra.

In yet another ruling passed a few weeks ago, MERC clarified that the nodal agency will grant medium-term open access (MTOA) or short-term open access (STOA) in the existing distribution system only if it can accommodate the resultant power flow.


Nitin Kabeer


Mercom Research Focus
India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY

India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...

March 15, 2023


Kerala Issues Empanelment Tender for 100 MW of Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...

March 20, 2023

Tenders and Auctions

Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option

Gujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...

March 17, 2023


MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: Interview

Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...

March 17, 2023



Mercom Cleantech Magazine

Get Your Copy Today!


Latest News

Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...

March 21, 2023

Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...

March 21, 2023

NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...

March 21, 2023

Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...

March 21, 2023

India Voices Concern over Europe’s Carbon Tariff Measure at WTO

India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...

March 21, 2023

JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...

March 21, 2023

Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...

March 21, 2023

Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...

March 21, 2023

IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...

March 21, 2023

Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm

The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...

March 21, 2023