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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has approved Tata Power Company &#8211; Distribution’s (<a href="https://www.tatapower.com/" target="_blank" rel="noopener">TPC-D</a>) adoption of tariffs of ₹3.27 (~$0.0394)/kWh and ₹3.28 (~$0.0395)/kWh discovered through competitive bidding for the procurement of 225 MW of wind-solar hybrid power along with 150 MW additional capacity under the &#8216;greenshoe&#8217; option to meet its renewable purchase obligations (RPO).</p>
<p><strong>Background</strong></p>
<p>In November 2022, MERC had granted approval to TPC-D to start bidding for 225 MW of hybrid renewable power to meet its future electricity demand and renewable purchase obligations (RPO).</p>
<p>Accordingly, TPC-D <a href="https://www.mercomindia.com/tata-power-bids-225-mw-wind-solar-hybrid-projects" target="_blank" rel="noopener">floated</a> a tender for 225 MW capacity on June 26, 2023, on the central government&#8217;s bidding portal.</p>
<p>On September 5, TPC-D conducted an e-reverse auction, after which tariffs of ₹ 3.27 (~$0.0394)/kWh and ₹3.28 (~$0.0395)/kWh were discovered for the lowest bidders.</p>
<p>TPC-D then <a href="https://www.mercomindia.com/juniper-green-tata-renewable-win-225-mw-hybrid-auction" target="_blank" rel="noopener">awarded</a> Juniper Green Energy (<a href="https://www.junipergreenenergy.com/" target="_blank" rel="noopener">JGEPL</a>) 75 MW capacity at ₹3.27 (~$0.0394)/kWh and Tata Power Renewable Energy (<a href="https://www.tatapowerrenewables.com/">TPREL</a>) 150 MW capacity at ₹3.28 (~$0.0395)/kWh pending power purchase agreement signing.</p>
<p>In August 2023, MERC had published draft regulations raising the RPO obligations on power distribution companies in Maharashtra. To meet this increased RPO and future power demand, TPC-D incorporated the &#8216;greenshoe&#8217; option in the ongoing bidding.</p>
<p>TPREL offered an additional 150 MW capacity under this option at the lowest tariff of ₹3.27 (~$0.0394)/kWh based on TPC-D&#8217;s request. TPC-D then filed a petition with MERC for the adoption of tariffs discovered in the bidding along with the greenshoe capacity.</p>
<p><strong>Commission&#8217;s Analysis</strong></p>
<p>During the regulatory approval proceedings, MERC observed that TPC-D had followed a transparent, competitive bidding process as per guidelines under the Electricity Act 2003.</p>
<p>The discovered tariffs were also found to be lower than recent wind-solar hybrid power tariffs and TPC-D&#8217;s approved power purchase costs. Considering these factors, MERC approved the adoption of tariffs discovered through competitive bidding.</p>
<p>MERC also gave its go-ahead to procure an additional 150 MW hybrid power capacity under the greenshoe option from TPREL at a tariff of ₹3.27 (~$0.0394)/kWh. It then directed TPC-D to sign PPAs with JGEPL and TPREL.</p>
<p>Late last year, MERC <a href="https://www.mercomindia.com/merc-approves-tata-power-for-gst-hike" target="_blank" rel="noopener">directed</a> TPC-D to compensate TPGEL ₹491.2 million (~$5.89 million) against the costs incurred due to the hike in Goods and Service Tax rate for its wind-solar hybrid and wind project. MERC accepted TPGEL’s petition, noting the absence of objections from the TPC-D.</p>
<p>Earlier this year, the commission directed the Maharashtra State Electricity Distribution Company to <a href="https://www.mercomindia.com/merc-orders-discom-refund-excess-penalty" target="_blank" rel="noopener">reimburse </a>Imagicaa World Entertainment, a theme park owner in Maharashtra, for excess demand penalty charges plus interest incurred due to renewable energy open access levies.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


MERC Approves Tariffs for Tata Power’s 225 MW Wind-Solar Hybrid Projects

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