The Maharashtra Electricity Regulatory Commission (MERC) has approved the tariffs of ₹3.60 (~$0.0428) to ₹3.62 (~$0.0431)/kWh for the Maharashtra State Electricity Distribution Company (MSEDCL) to procure 1,601 MW of wind-solar hybrid power.

Background

MSEDCL issued a tender to procure 2,000 MW of hybrid power, with an additional greenshoe option for up to 2,000 MW in March this year. The tender was initially floated for 500 MW but was later increased to 2,000 MW.

In the e-reverse auction, JSW Neo and Juniper Green quoted ₹3.60 (~$0.0431)/kWh to win 200 and 75 MW, respectively.

BN Peak Power (BrightNight) won 76 MW at a tariff of ₹3.62 (~$0.0431)/kWh. Avaada Energy won 75 MW out of the quoted capacity of 500 MW at a tariff of ₹3.69 (~$0.0438)/kWh under the bucket-filling method.

Following this, bidders were invited to offer more capacity under the greenshoe option, provided they matched the L1 tariff. Accordingly, JSW Neo offered an additional 400 MW, while Avaada offered 775 MW wind-solar hybrid power at L1 tariff. This took Avaada and JSW’s total capacity to 850 MW and 600 MW, respectively.

Avaada’s final tariff rate was set at ₹3.61 (~$0.0430)/kWh, the weighted average tariff discovered in the e-reverse auction.

With the greenshoe option, the total power offered was 1,601 MW.

MSEDCL emphasized the need for this procurement to meet its renewable purchase obligation targets and to secure power at competitive rates in a growing renewable energy market.

Commission’s Analysis

The Commission noted that the competitive bidding process was conducted transparently and under the Ministry of New and Renewable Energy guidelines. The tender documents were well-prepared, and the procurement was based on market-competitive tariffs.

In evaluating the tariffs, the Commission compared them with those discovered in similar tenders from other agencies, such as the Solar Energy Corporation of India. The tariff rates in MSEDCL’s bidding process—ranging from ₹3.60 (~$0.043) to ₹3.62 (~$0.043)/kWh —were on par with prevailing market trends.

Additionally, since the projects are within Maharashtra, interstate transmission charges and losses do not apply, making the proposed tariffs even more competitive.

The Commission also considered MSEDCL’s growing renewable energy capacity and its need to comply with future RPO targets. Combined with wind and solar, hybrid power provides higher capacity utilization and is aligned with the state’s renewable energy goals.

Based on these considerations, the Commission approved the adoption of the proposed tariffs for the long-term procurement of 1,601 MW of wind-solar hybrid power over 25 years.

Recently, MERC gave the green light for the MSEDCL to procure an additional 5,991 MW of solar power through competitive bidding.

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