The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company’s (MSEDCL) request for adopting 400 MW of solar power from Avaada Energy at a tariff of ₹2.79 (~$0.0326)/kWh.

Background

In February 2023, the petitioner, MSEDCL, floated a tender to procure 500 MW of solar power from the intra-state transmission projects with a greenshoe option of 500 MW for 25 years.

After receiving the e-reverse auction, MSEDCL  selected SAEL for 100 MW and Avaada Energy for 400 MW capacities at the discovered tariffs of ₹2.87 (~$0.0336)/kWh and ₹2.88 (~$0.0337)/kWh, respectively.

The petitioner asked Avaada Energy to match the L1 negotiated tariff of ₹2.87 (~$0.0336). Avaada accepted this tariff. SAEL did not respond to a similar intimation.

MSEDCL had also signed a power sale agreement of 1,475 MW with NHPC for procuring solar power on a long-term basis at a tariff of ₹2.60 (~$0.0303)/kWh. Therefore, it did not avail of the greenshoe option.

The petitioner approached the Commission to approve the requested tariff of ₹2.79 (~$0.0326)/kWh to purchase 400 MW of solar power from Avaada. It submitted that the tariff approval would help it meet its renewable purchase obligations (RPO).

Commission’s Analysis

MERC observed that the petitioner’s bidding process was competitive, transparent, and adhered to government guidelines. It also noted that the discovered tariff reflected the current market trends.

Additionally, the Commission acknowledged that procuring 400 MW of solar power would help the petitioner meet its RPO.

The Commission approved the requested tariff of ₹2.79 (~$0.0326)/kWh for 400 MW of solar power.

In April this year, MERC directed the MSEDCL and the Braithwaite Nacof Solar Project to resolve a power purchase agreement dispute through arbitration.

In March, MERC approved the adoption of a tariff of ₹3.65 (~$0.0421)/kWh for Adani Electricity Mumbai to procure 250 MW wind power from JSW Neo Energy for 25 years.

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