Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company’s (MSEDCL) proposed tariff of ₹3.60 (~$0.042)/kWh to procure 13 MW of wind-solar hybrid power for 25 years.

Background

MSEDCL floated a tender for procuring 2,000 MW of power from wind-solar hybrid projects with an additional 2,000 MW through the greenshoe option.

The Commission had approved tariffs ranging from ₹3.60 (~$0.0428) to ₹3.62 (~$0.0431)/kWh for MSEDCL to procure 1,601 MW of wind-solar hybrid power.

MSEDCL said it had submitted the wrong file on the e-file portal, resulting in the Commission not considering 13 MW capacity in its October 2024 order.

The distribution company (DISCOM) filed a petition to adopt a tariff to procure 13 MW wind-solar hybrid power and filed for the matter’s urgent listing in November last year.

Correcting the quantum of power procurement, MSEDCL requested the Commission to consider the 13 MW greenshoe capacity at a tariff of 3.60 (~$0.042)/kWh, along with the approved capacity of 1,601 MW.

Commission’s Analysis

The Commission noted that MSEDCL accepted that due to an inadvertent error, the correct submission was not uploaded on the e-filing portal, leading it to file a fresh petition to adopt the additional 13 MW capacity.

It was satisfied that the proposed tariff is part of the same bid process and within the bid capacity of 2,000 MW with a 2,000 MW green shoe option. It approved the proposed tariff for the additional capacity from the BN Peak Power-1 private DISCOM.

Last year, MERC ordered MSEDCL to compensate a developer for the increased cost of the project due to the basic customs duty on solar cells and modules. The Commission ruled that any event can be considered a ‘change in law’ if it is categorically mentioned in the power purchase agreement. If a project cost increases due to such events, it must be compensated.

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