Maharashtra Floats Tender to Procure 50 MW of Bagasse-Based Power

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has invited request for selection (RfS) for the procurement of 50 MW of power generated from bagasse-based co-generation power projects in the state.

The minimum capacity of the project should 5 MW to be eligible to participate in this tender while the least exportable bid capacity is 3 MW.

The projects which are already supplying power to MSEDCL under an existing energy purchase agreement (EPA) which has already expired or is going to expire by March 31, 2020, will be eligible to participate in the bidding process.

The last date for the submission of the bids is October 10, 2019, while the technical bid opening date has been scheduled for October 11, 2019.



Interested bidders need to pay a sum of ₹100,000 (~$1,417)/ MW as the earnest money deposit (EMD). According to the MSEDCL, the ceiling tariff for the bid is ₹3.56 (0.050)/kWh.

The bidder should supply the entire power generated from its project to MSEDCL as per the terms and conditions of the power purchase agreement (PPA). Also, the use of fossil fuels should be limited to the extent of 15% of the total fuel consumption every month. The compliance regarding usage of fossil fuels by the generator will be monitored by the MSEDCL.

The levelized tariff will be considered for the bidding process and will remain constant throughout the term of the PPA, and there will be no escalation during the contractual period.

In May 2019, MSEDCL had filed a petition before the Maharashtra Electricity Regulatory Commission for the approval of procurement of bagasse-based co-generation power for FY 2018-19 for meeting its non-solar renewable purchase obligation.

In December 2018, the state commission approved a petition filed by the Maharashtra State Electricity Distribution Company Limited for the long-term procurement of 50 MW biomass power for a period of 20 years through competitive bidding.  MSEDCL had petitioned MERC to approve the competitive bidding process followed by an e-reverse auction for the procurement of 50 MW of biomass-based power and the same to be made eligible for meeting MSEDCL’s non-solar renewable purchase obligation requirement.

Then in July 2019, it was reported that Maharashtra Electricity Regulatory Commission 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. and Maharashtra Energy Development Agency.

Image credit: Jonathan Wilkins [CC BY-SA 3.0]