The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has tendered 250 MW of wind power projects to be developed in the state. The bid-submission deadline is May 10, 2018.

MSEDCL tendered the capacity to fulfill its non-solar renewable purchase obligation (RPO) and to meet future power requirements. MSEDCL has fixed a very aggressive upper tariff ceiling at ₹2.52 (~$0.0386)/kWh for this tender. The lowest wind power tariff is ₹2.43 (~$0.038)/kWh, quoted in the Gujarat Urja Vikas Nigam Ltd. (GUVNL) 500 MW auction in Gujarat.

MSEDCL will enter power purchase agreements (PPA) with the successful bidders for a period of eight years from the date of commercial operations. The bidders are required to obtain necessary clearances and permits as required for setting up the wind power projects. The minimum bid capacity is 1 MW, a single bidder can bid for the entire capacity being tendered.

During the duration of the PPA, if for any year it is found that the developer was unable to generate the minimum energy corresponding to the lower limit of the capacity utilization factor (CUF) declared by the developer, the developer will pay compensation to MSEDCL for the performance shortfall. In case of grid unavailability, the developer would not need to pay compensation.

In case there is an over generation of power, the wind power generator will be free to sell to any other entity provided the first right of refusal vests with the procurer (MSEDCL). In cases where MSEDCL agrees to procure the excess power generated, it will be done at a tariff equal to 75 percent of the PPA tariff.

The project developer must tie-up financing arrangements for the projects within seven months of signing the PPA.

The projects shall be commissioned on or before March 31, 2019, in line with the procedure elaborated in PPA document.

In case of delay in project commissioning beyond the scheduled timeframe; MSEDCL will encash a performance bank guarantee on per day basis proportionate to the balance of capacity not commissioned.

If project commissioning is delayed beyond three months, the maximum time period allowed for commissioning of the full project capacity with encashment of PBG will be limited to three months from the scheduled commercial operation date (SCOD), whichever is earlier. In cases where project commissioning is delayed by more than three months, the PPA for the entire capacity will be terminated.

Recently, MSEDCL also retendered 1,000 MW of grid-connected solar photovoltaic (PV) projects in order to meet its solar RPO, and invited Expressions of Interest (EoI) from prospective solar project developers to set up a 1 GW floating solar PV project on Ujjani Dam reservoir in Solapur district of Maharashtra.

In March 2018, the Maharashtra Electricity Regulatory Commission (MERC) has issued draft regulations for the forecasting, scheduling, and deviation settlement for solar and wind power generation in the state.