India’s Renewable Energy Generation Projected to Grow 4.6% in FY 2027

Daily News Wrap-Up: Maharashtra’s Storage Rule Alters Rooftop Solar Economics

CERC Rejects Connectivity Start Date for 700 MW Solar Project

India’s Floating Solar Pipeline Tops 1 GW, But Vast Potential Remains Untapped

Karnataka Proposes Lower Levelized Tariffs for Solar Projects

Create Energy Acquires SOL Components from Kloeckner Metals

Nautilus Solar Renews $600 Million Debt Facility for Community Solar

IIT Palakkad Floats Tender for 1.25 MW Solar Project

UREDA Tenders 6.5 MW Rooftop Solar Projects on Government Buildings

Tripura Tenders 47.5 MW Rooftop Solar Projects for Residential Consumers

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/06/amazon_polly_96488.mp3?version=1781592143">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>REC Power Development and Consultancy (<a href="https://www.recpdcl.in/" target="_blank" rel="noopener">RECPDCL</a>) has announced the winner of its auction to set up a 400/132 kV air-insulated substation (AIS) in Jalna district, Maharashtra, on a build-own-operate-and-transfer basis.
Maharashtra State Electricity Transmission Company (<a href="https://www.mahatransco.in/" target="_blank" rel="noopener">MSETCL</a>) bagged the project at a quoted transmission charge of nearly ₹1.54 billion (~$16.25 million).
The tender was<a href="https://www.mercomindia.com/rec-invites-bids-for-400-132-kv-substation-project-in-maharashtra" target="_blank" rel="noopener"> issued</a> in September 2025.
MSETCL must survey, design, engineer, procure, finance, construction, test, and commission the substation. It must provide operation and maintenance services for 35 years.
The scope of work involves installing three 315 MVA, 400/132 kV interconnecting transformers (ICTs), one 125 MVAr bus reactor at 400 kV, four 400 kV line bays, three 400 kV ICT bays, one 400 kV reactor bay, 12 132 kV line bays, and three 132 kV ICT bays. The substation will provide space for an additional 315 MVA ICT and future bays.
MSETCL must install a loop-in-loop-out (LILO) of the 400 kV Aurangabad-II (Thaptitanda)–Aurangabad-III (Ektuni) double-circuit line at AIS Jalna, and multiple 132 kV outgoing double circuit lines, including connections to Jalna MIDC, Partur, Ghansawangi, and Utwad substations, along with LILO of the Jalna–Nagewadi 132 kV line. The respective utilities will provide bays at existing substations. For LILOs, the conductor and optical ground wire specifications must match existing line parameters.
The projects must be commissioned within 24 months.
This March, Mumbai-based Bajel Projects, an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution infrastructure, <a href="https://www.mercomindia.com/bajel-projects-to-install-400-220-kv-ais-substation-in-maharashtra" target="_blank" rel="noopener">secured</a> an order from MSETCL to set up a 2×500 MVA, 400/220 kV air-insulated switchgear substation at Saswad, Pune district, Maharashtra.
Last October, MSETCL <a href="https://www.mercomindia.com/msetcl-invites-bids-to-empanel-epc-partners-for-2-gw-4-gwh-bess-projects" target="_blank" rel="noopener">invited</a> expressions of interest to empanel EPC partners to set up 2,000 MW/4,000 MWh of battery energy storage systems.
Recently, the Maharashtra Electricity Regulatory Commission <a href="https://www.mercomindia.com/merc-approves-400-220-kv-transmission-project-to-support-data-center-load" target="_blank" rel="noopener">approved</a> the 400/220 kV GIS Ambernath substation at Palava under the dedicated distribution facility framework. Lodha Developers will fund and build the project under MSETCL’s supervision, then transfer it to the state transmission utility for operation and maintenance at no cost.
Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.

RECPDCL Announces Winner of 400/132 kV Substation Auction

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/06/amazon_polly_96015.mp3?version=1780649387">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has approved the development of the 400/220 kV GIS Ambernath substation at Palava in the Thane district under the dedicated distribution facility framework through Option 1.
Under Option 1, Lodha Developers will develop the substation at its own capital cost under the technical supervision, design standards, inspection, and control of the Maharashtra State Electricity Transmission Company (<a href="https://www.mahatransco.in/" target="_blank" rel="noopener">MSETCL</a>). The asset will then be handed over to the transmission company free of cost for operation and maintenance.
The Commission held that the project must be executed on a priority basis to meet the proposed data center load by 2027.
It said the project is required to serve the Green Integrated Data Center Park at Palava and to meet data center loads in Mumbai, Navi Mumbai, and the Thane corridor.
Background
The Ambernath project was approved by the Empowered Committee for implementation through the tariff-based competitive bidding route at its meeting on July 8, 2025. The project’s stated objective was to cater to the rapidly growing data center load in the Ambernath region.
The Government of Maharashtra appointed REC Power Development and Consultancy as the bid process coordinator for conducting the bidding process.
Six bidders participated in the process and qualified for the opening of initial price offers after technical evaluation. Four bidders later qualified for the reverse auction.
However, during the reverse auction process, the discovered tariff was found to be abnormally low, unrealistic, and commercially unviable compared with the base price and prevailing market conditions. The bid evaluation committee later annulled the bidding process.
The State Transmission Utility (STU) argued that retendering the project through the competitive bidding route could lead to a similar situation and further delay the project&#8217;s implementation.
The Empowered Committee later considered the magnitude of the upcoming load, connectivity timelines, and the project’s  importance. It was observed that establishing the 400/220 kV GIS substation at Ambernath by 2027 had become essential and that the project required priority implementation.
Lodha Developers informed the State Transmission Utility that it was willing to undertake the development of the proposed Ambernath substation at its own cost and transfer the infrastructure to MSETCL free of cost. Lodha also conveyed its willingness to bear and reimburse the substation&#8217;s annual operation and maintenance expenses.
The STU said Maharashtra has already granted grid connectivity for approximately 1,450 MW of load in the Ambernath region, while an additional 1,500 MW of load is under consideration. The total expected load of 2,950 MW is expected to be connected to the Maharashtra State Transmission Grid by 2027.
Commission’s Analysis
The Commission examined whether the project needed priority execution and whether it could be implemented under the Dedicated Distribution Facility framework.
It noted that the project had already been delayed because of the annulled bidding process. It also considered the 2027 timeline for data center connectivity, the need to avoid transmission constraints, and the requirement to ensure grid reliability.
The Commission referred to the Maharashtra Government’s Integrated Green Data Center Park Policy, notified on October 9, 2024.
MERC noted that Lodha had entered into memoranda of understanding with the Government of Maharashtra in September 2024 for investments of approximately ₹300 billion (~$3.13 billion) and in January 2026 for investments of approximately ₹1 trillion (~$10.44 billion) toward the development of a Green Integrated Data Center Park at Palava.
The Commission noted that the development and commissioning of extra-high-voltage transmission infrastructure, including substations and transmission lines, generally requires about two to three years.
It said the proposed transmission arrangement includes infrastructure dedicated exclusively to supplying power to the proposed Green Data Center Park through the 400/220 kV GIS substation.
The arrangement is intended to serve consumers within the data center park and does not form part of the general network used to supply other consumers.
The Commission held that the proposed substation, being infrastructure dedicated exclusively to supplying power to the Green Data Center Park, qualifies as a Dedicated Distribution Facility under the MERC Supply Code Regulations, 2021.
The Commission said the Supply Code Regulations permit a consumer or group of consumers to develop a Dedicated Distribution Facility at their own cost. It also noted that the cost incurred by the consumer for developing such a facility is not reimbursed.
Since Lodha Developers will bear the entire capital cost of the project, the Commission said no capital expenditure would be recovered through transmission tariffs from other consumers in the state. It also said there would be no socialization of the project’s capital cost and no additional tariff burden on other transmission system users.
The Commission directed STU and MSETCL to execute the project under the Dedicated Distribution Facility framework through Option 1.
MERC also directed the utility and the transmission company to comply with the State Grid Code Regulations, 2020, while executing the project under the supervision of MSETCL and while connecting it with inter-state transmission lines.
Recently, MERC <a href="https://www.mercomindia.com/maharashtra-adopts-tariff-for-2-5-gw-round-the-clock-renewable-power-procurement" target="_blank" rel="noopener">approved</a> the Maharashtra State Electricity Distribution Company’s proposal for long-term procurement of 2,500 MW of round-the-clock renewable energy.
Subscribe to Mercom’s real-time <a href="https://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.

MERC Approves 400/220 kV Transmission Project to Support Data Center Load

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/03/amazon_polly_91932.mp3?version=1773660123">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Mumbai-based <a href="https://bajelprojects.com/" target="_blank" rel="noopener">Bajel Projects,</a> an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution infrastructure, has secured an order to set up a 2×500 MVA, 400/220 kV air-insulated switchgear (AIS) substation at Saswad, Pune district, Maharashtra, from Maharashtra State Electricity Transmission Company (<a href="http://www.mahatransco.in/" target="_blank" rel="noopener">MSETCL</a>).
The order’s value is over ₹7 billion (~$75.8 million).
Bajel must provide the complete turnkey EPC of the AIS substation. This will include the substation’s design, erection, testing, and commissioning.
The company must also provide the associated transmission lines and undertake the substation’s civil works.
The substation will include a 1×125 MVAr bus reactor at the 400 kV voltage level. Bajel must design the substation with provisions for future expansion. Its scope of work includes providing bays at three other substations to help the Saswad substation integrate into the existing transmission grid.
The company must construct multiple new 400 KV and 200 KV transmission lines and line-in-line-out configurations to connect the substation to the state’s broader grid.
Bajel works in both the power transmission and power distribution sectors. It also provides international EPC services and monopole manufacturing.
The company also secured an EPC order from Tata Power Company to install a 220 kV transmission line using monopoles for the Kalwa Kalyan Pal Line transmission project in Mumbai. The company will execute this order within 10 months.
Bajel’s power transmission portfolio includes transmission lines, extra-high-voltage (EHV) substations, and EHV underground cables. It has laid over 7,000 circuit kilometers of EHV transmission lines and more than 40 EHV AIS/gas-insulated switchgear substations.
The company has over 25 power transmission projects under execution with state, central, and private utilities.
Last July, Bajel Projects <a href="https://www.mercomindia.com/bajel-projects-wins-renewable-energy-transmission-epc-order" target="_blank" rel="noopener">secured</a> an EPC order for package TL04 of the Siwani-Jind 400 kV double-circuit (quad) transmission line from Power Grid Corporation of India. The order’s value was estimated to be between ₹3 billion (~$34.88 million) and ₹4 billion (~$46.51 million).
In the same month, Bajel <a href="https://www.mercomindia.com/bajel-to-expand-galvanizing-capacity-for-steel-module-mounting-structures" target="_blank" rel="noopener">announced</a> it would invest ₹1.7 billion (~$19.78 million) in more than doubling its galvanizing capacity at its Ranjangaon facility in Maharashtra. Galvanized steel is widely used in mounting structures and frames for solar panels, as well as in transmission infrastructure. The investment will also be utilized to enhance its production capabilities in transmission towers, monopoles, lighting towers, and high masts.

Bajel Projects to Install 400/220 kV AIS Substation in Maharashtra

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/10/amazon_polly_85948.mp3?version=1778161749">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The Maharashtra State Electricity Transmission Company (<a href="https://www.mahatransco.in/" target="_blank" rel="noopener">MSETCL</a>) has invited expressions of interest (EoI) for empaneling engineering, procurement, and construction (EPC) partners to set up 2,000 MW/4,000 MWh battery energy storage systems.
The last date to submit bids is October 27, 2025, and bids will be opened on the same day.
Bidders must submit an earnest money deposit of 25,000 (~$284.6) and a contract performance guarantee amounting to 10% of the total contract value.
The successful bidder must also furnish an annual maintenance performance bank guarantee amounting to 4% of the total contract value. The bank guarantee will be valid for five years and must be renewed every five years.
In July 2025, the Maharashtra State Electricity Distribution Company (MSEDCL) <a href="https://www.mercomindia.com/maharashtra-floats-tender-for-2000-mw-4000-mwh-battery-energy-storage" target="_blank" rel="noopener">floated</a> a tender to select BESS developers to set up 2,000 MW/4,000 MWh BESS projects.
MSETCL intends to participate in the MSEDCL tender as a bidder and has floated this EoI to empanel EPC contractors, technology providers, and system integrators.
The exact bidding capacity will be communicated to the empanelled EPC partners before the submission of commercial bids.
An EPC developer empaneled by MSETCL must not bid directly or indirectly in the MSEDCL tender through consortiums, affiliates, joint ventures, special-purpose vehicles, or the original equipment manufacturer route.
The scope of work covers the design, engineering, construction, and commissioning of the BESS project.
The project must be set up for charging/discharging for one cycle.
It also covers comprehensive, annual maintenance contracts for the BESS projects for 12 years.
The projects must be completed within 15 months of the issue of the letter of award.
If the selected bidder fails to complete the projects within 15 months, it must pay liquidated damages equal to 0.5% of the total contract value for each week, up to a maximum of 5% of the total contract value.
The project also entails integrating the power conversion system (inverter), as well as the energy management and battery management systems.
The successful bidder must ensure the projects are set up to comply with grid and cybersecurity standards. They must also meet all metering and telemetry obligations to the state load dispatch centers and MSEDCL.
Selected bidders must be responsible for establishing a battery augmentation and replacement protocol and managing all interface responsibilities at the 132/220/400 kV bays of MSETCL.
They must ensure the BESS projects meet the performance requirements specified by MSEDCL..
During the operation and maintenance (O&amp;M) period, the selected bidders must ensure annual system availability of at least 95%.
If the BESS project&#8217;s annual availability falls below the guaranteed level, the selected bidders must pay 0.25% of the annual O&amp;M payment for each 1% shortfall in availability.
The selected bidder must have manufactured and supplied batteries for a cumulative capacity of 20 MWh BESS projects.
At least one of those BESS projects must be of 5 MWh and supplied in a single order. The projects must have been commissioned for at least six months before the date of techno-commercial bid opening.
Alternatively, the successful bidder must have supplied, installed/supervised the installation, and commissioned/supervised the commissioning for a cumulative 20 MWh BESS projects.
At least one of those projects must be 5 MWh and supplied in a single order. The projects must have been commissioned for at least six months before the techno-commercial bid opening date.
Bidders can also qualify if they have executed the supply, erection, testing, and commissioning of at least two extra-high-voltage (EHV) substations with a voltage level of at least 220 kV under EPC or turnkey contracts.
Each substation must comprise at least four level bays of at least 220 kV. It must also include two circuit breaker-equipped interconnecting transformer /transformer bays and two circuit breaker-equipped EHV bays.
The projects must have been completed within the last seven years, and each substation must have been operational for at least one year before the bid submission date.
Additionally, such successful bidders must have a tie-up or a manufacturing licensing agreement with a manufacturer capable of manufacturing and supplying batteries for a 20 MWh BESS project.
Successful bidders must have a minimum annual turnover of at least 2 billion (~$22.7 million) over the last three financial years.
They must have a positive net worth in the last three financial years.
To accelerate BESS projects in India, the Ministry of Power <a href="https://www.mercomindia.com/government-allows-4-hour-1-cycle-bess-operation" target="_blank" rel="noopener">allowed</a> states to implement standalone BESS projects under the viability gap funding program, supported by the Power System Development Fund, in both 2-hour and 4-hour configurations.
Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.

MSETCL Invites Bids to Empanel EPC Partners for 2 GW/4 GWh BESS Projects

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="http://mercomindia.com/wp-content/uploads/2022/10/amazon_polly_42285.mp3?version=1665033588">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) has invited bids to procure 500 MW of power on a long-term basis from 500 MW (Phase IX) of grid-connected intrastate solar power projects.
The last date to submit the bids online is November 9, 2022. Bids will be opened on the same day.
Bidders must submit a non-refundable processing fee of ₹300,000 (~$3,674) to participate in the bidding process. The bidders must also submit ₹472,000 (~$5,781)/MW as an earnest money deposit.
The successful bidder will have to furnish ₹1.29 million (~$15,800)/MW as a performance bank guarantee.
MSEDCL will enter into a power purchase agreement (PPA) with the selected bidders for 25 years from the scheduled commercial operation date.
Only commercially established and operational technologies can be used for these projects to minimize the technology risk and to achieve timely commissioning.
Projects eligible for this tender include projects under construction, projects that are not yet commissioned, and those already commissioned but do not have any long-term PPA with any agency and selling power on a short-term basis. Such projects should not have already been accepted under other central or state programs.
The minimum project capacity must be 25 MW at a single location with a minimum bid capacity of 50 MW for projects. The maximum bidding capacity for a single bidder is 500 MW, subject to satisfying the technical and financial criteria. Further, the project capacity should be in multiples of 25 MW beyond the minimum project capacity of 25 MW.
The net worth of bidders for the last financial year should not be less than ₹10 million (~$122,486)/MW. The minimum annual turnover of bidders during the last financial year should be at least ₹3.52 million (~$43,115)/MW of the quoted capacity.
Bidders should have an internal resource generation capability in the form of profit before depreciation, interest, and taxes for a minimum amount of ₹703,400 (~$8,615)/MW of the quoted capacity as of the last day of the previous financial year.
They should also have approval from lending institutions for a minimum amount of ₹879,000 (~$10.766)/MW of the quoted capacity toward meeting the working capital requirement of the project.
The responsibility of getting the grid connectivity with the state transmission utility, i.e., the Maharashtra State Electricity Transmission Company (MSETCL), will be of the successful bidder.
The declared capacity utilization factor (CUF) should not be less than 19% over a year. The developers should maintain generation to achieve annual CUF within + 10% and -15% of the declared value until the end of 10 years from the commercial operation date, subject to the CUF remaining a minimum of 17% and within +10% and -20% of the CUF after that until the end of 25 years.
The solar modules to be used in the projects must be warranted for peak output wattage, which should not be less than 90% at the end of 10 years and 80% at the end of 25 years from the commercial operation date of the project.
MSEDCL has stated that the modules to be used for the project should be from the approved list of models and manufacturers issued by the Ministry of New and Renewable Energy.
Recently, NTPC Renewable Energy and Avaada Energy were <a href="https://mercomindia.com/ntpc-avaada-winners-msedcls-500-mw-solar-auction/" target="_blank" rel="noopener">declared</a> winners in MSEDCL’s auction to procure power from 500 MW of grid-connected inter or intrastate solar projects (Phase-VIII) on a long-term basis. The state distribution company had <a href="https://mercomindia.com/msedcl-issues-tender-to-procure-power-from-500-mw-of-solar-projects/" target="_blank" rel="noopener">floated</a> the tender in July this year to procure power from 500 MW inter or intrastate grid-connected solar power projects through long-term contracts.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a>, MSEDCL has floated tenders for 19.2 GW of solar projects.

MSEDCL Invites Bids to Procure Power from 500 MW of Intrastate Solar Projects

The Maharashtra Electricity Regulatory Commission (<a href="http://www.mercindia.org.in/" target="_blank" rel="noopener noreferrer">MERC</a>) has ruled in favor of Dr. Babasaheb Ambedkar Sahakari Sakar Karkhana Ltd. which had filed a petition regarding its 25.7 MW bagasse-based cogeneration power project.
The petition was filed for a refund of power evacuation infrastructure expenditure from Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) and Maharashtra Energy Development Agency (MEDA).
The company had requested the commission to direct MSETCL to immediately refund the amount of ₹15.517 million (~$0.22 million) and to direct MEDA to refund ₹20 million (~$0.29 million) on or before March 31, 2019.
After going through submissions made, the MERC noted that the company had commissioned its 25.7 MW project on March 6, 2015, connected with 132 kV substation of MSETCL. It had executed its EPA with MSEDCL on June 7, 2004, which was amended on February 22, 2011, for a change of connectivity from 33 kV to 132 kV level. This EPA was further amended on March 18, 2014, for capacity augmentation from 16 MW to 25.7 MW.
The commission found that request for a refund of ₹15.517 million (~$0.22 million) from MSETCL is without taking into consideration the relevant provisions agreed between the parties, especially with regards to the stipulations in the government policies applicable during that period.
As per the policy, the upper limit for the refund for evacuation cost for cogeneration projects is ₹40 million (~$0.58 million). The commission stated that MSETCL has to recover the additional expenditure of ₹2.287 million (~$0.033 million) from the bagasse project company.
For the request for a refund of ₹20 million (~$0.29 million) from MEDA, the commission noted that the electricity agency must act in line with the provisions of the government policy and therefore, the petitioner will approach MEDA with  the documents under provisions of the state government policies for the refund of ₹20 million after settling the dues of MSETCL amounting to ₹2.287 million (~$0.033 million). MEDA must refund the amount within a month of document submission.
<a href="https://mercomindia.com/msedcl-invite-bids-bagasse-projects/" target="_blank" rel="noopener noreferrer">Recently</a>, the Maharashtra commission approved the procurement of bagasse-based co-generation power by MSEDCL for FY 2018-19 for meeting its non-solar renewable purchase obligations.
Image credit: Ulka Industries

Maharashtra Entities Asked to Refund Evacuation Cost Incurred by Bagasse-Based Project

The, <a href="http://www.mercindia.org.in/" target="_blank" rel="noopener">Maharashtra Electricity Regulatory Commission (MERC)</a> has dismissed a petition filed by Olam Agro India Pvt. Ltd. (OAIPL) to directing MSETCL to comply with MERC’s previous impugned order. The commission observed that since the order in question is already under review, the current petition stands dismissed.
OAIPL has established a 20 MW bagasse-based co-generation power plant at Chennati Rajgoli village, Chandgad tehsil, Kolhapur district. It had filed a petition seeking reimbursement of cost of power evacuation arrangement for its bagasse-based plant. MERC passed an order on May 2, 2018.
In this order, the commission directed MSETCL to reimburse the lower of the total cost of power evacuation arrangement for the petitioner’s bagasse-based plant.
The commission stated, “In view of the foregoing, MSETCL shall reimburse the lower of total cost as per its approved estimated cost or the actual verified cost incurred by Olam Agro, net of the amount paid by MEDA, within two months, along with applicable interest from the date the respective installments were due till the date of payment. MSETCL is entitled to the expenses incurred towards the evacuation arrangements through its aggregate revenue requirement, but not to the interest amount arising from the delay in payment,”
However, MSETCL did not comply with the commission’s above directives, despite OAIPL’s follow-up.
The commission also noted that MSETCL had also filed a petition seeking a review of the May 2 2018 impugned order. In its petition, MSETCL requested the commission to consider the Maharashtra government’s policy and the commission’s order in number of various renewable energy projects previously approved by MERC.
The DISCOM argued that deviation from this order will increase the project’s financial burden by ₹5 billion (~$67.6 million) and ultimately the common consumer would bear the brunt in the form of an increase tariff. Further, MSETCL submitted that the delay in compliance with the impugned order was not intended, and apologized for this oversight.
<a href="https://mercomindia.com/maharashtra-200-mw-bagasse-projects/" target="_blank" rel="noopener">Recently,</a> <a href="https://www.merc.gov.in/mercweb/faces/merc/common/outputClient.xhtml" target="_blank" rel="noopener">MERC</a> had approved <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3tv6uoJXYAhVD8IMKHepjCLoQFggpMAA&amp;url=http%3A%2F%2Fwww.mahadiscom.com%2F&amp;usg=AOvVaw2QxivFcdTQaLrnZ2QmlQTP" target="_blank" rel="noopener">MSEDCL</a>’s proposal to procure long-term bagasse-based cogeneration power through competitive bidding. This ruling is expected to pave the way for grid-connectivity and a power purchase agreement (PPA) for 200 MW of bagasse-based cogeneration projects in the state. It will also attract developers active in the bagasse-based cogeneration project sector, as the PPA will be long-term at 20 years, compared to the previously accepted medium-term 13-year PPA.
Delay in the scheduled commissioning date of power projects due to unavailability of evacuation infrastructure has been plaguing the sector across all power generation segments including solar and wind. In a recent <a href="https://mercomindia.com/delay-transmission-system-solar-attract-penalty/" target="_blank" rel="noopener">notification</a> issued by the Ministry of New and Renewable Energy (MNRE), any delay in the scheduled commissioning date of solar projects due to unavailability of internal execution or transmission system by solar park developers will now be liable to a penalty. This step if implemented strictly could prove positive for the sector.

Maharashtra Electricity Commission Dismisses Bagasse-Based Developer’s Petition

The <a href="http://www.mercindia.org.in/" target="_blank" rel="noopener">Maharashtra Electricity Regulatory Commission (MERC)</a> has passed an order directing the Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) to pay a total sum of ₹5.5 million (~ $0.075 million) to a hydro power project developer. MSETCL must pay the amount to Mahati Hydro Power Projects Pvt. Ltd. towards the balance payment for the construction of the evacuation arrangement beyond the inter-connection point. The payment has to be made within three months from the date of the order (October 26, 2018).
The commission passed the order in response to the review petition filed by MSETCL, seeking a review of commission’s order dated April 10, 2018.
It should be noted that the original petition was filed by Mahati before the commission, seeking few reliefs. Mahati had requested the commission to direct MSETCL and/or Maharashtra Energy Development Authority to pay ~ ₹14.4 million (~ $0.197 million) towards the balance payment for the construction/creation of the evacuation arrangement beyond the inter-connection point, and to pay interest on the unpaid dues from their respective due dates. To this petition, the commission passed the following ruling on April 10, 2018.
“In view of the foregoing, MSETCL shall reimburse ₹8.998 million (~ $0.123 million), which is the approved cost of the evacuation arrangements (₹ 17.536 million) minus the metering cost (₹ 3.038 million), and minus ₹ 5.5 million (~ $ 0.0752 million) provided by Maharashtra Energy Development Authority to Mahati within two months, along with applicable interest from the date the respective installments were due till the date of payment. MSETCL is entitled to the expenses incurred towards the evacuation arrangements through its aggregate revenue requirement, but not to the interest amount arising from the delay in payment.”
Post the above order, MSETCL had filed a review petition, stating that the developer’s refund request was not processed as it had failed to submit a long-term energy purchase agreement.
<a href="https://mercomindia.com/small-hydro-developer-relief-discoms-non-compliance/" target="_blank" rel="noopener">Recently,</a> <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjA_q--oJXYAhWI2YMKHfUxA-EQFggpMAA&amp;url=http%3A%2F%2Fwww.mercindia.org.in%2F&amp;usg=AOvVaw1c9yQPF60gFUZwOCtJu29q" target="_blank" rel="noopener">MERC</a> had provided relief to another small hydro project developer of a 10 MW Radhanagari small hydro power project in Maharashtra. MERC had provided this relief due to non-compliance by the Maharashtra State Electricity Distribution Company Limited (<a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3tv6uoJXYAhVD8IMKHepjCLoQFggpMAA&amp;url=http%3A%2F%2Fwww.mahadiscom.com%2F&amp;usg=AOvVaw2QxivFcdTQaLrnZ2QmlQTP" target="_blank" rel="noopener">MSEDCL</a>).
&nbsp;

msetcl

Get the most relevant India solar and clean energy news.

RECENT POSTS