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					</table>Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) has invited bids to procure 500 MW of power on a long-term basis from 500 MW (Phase IX) of grid-connected intrastate solar power projects.
The last date to submit the bids online is November 9, 2022. Bids will be opened on the same day.
Bidders must submit a non-refundable processing fee of ₹300,000 (~$3,674) to participate in the bidding process. The bidders must also submit ₹472,000 (~$5,781)/MW as an earnest money deposit.
The successful bidder will have to furnish ₹1.29 million (~$15,800)/MW as a performance bank guarantee.
MSEDCL will enter into a power purchase agreement (PPA) with the selected bidders for 25 years from the scheduled commercial operation date.
Only commercially established and operational technologies can be used for these projects to minimize the technology risk and to achieve timely commissioning.
Projects eligible for this tender include projects under construction, projects that are not yet commissioned, and those already commissioned but do not have any long-term PPA with any agency and selling power on a short-term basis. Such projects should not have already been accepted under other central or state programs.
The minimum project capacity must be 25 MW at a single location with a minimum bid capacity of 50 MW for projects. The maximum bidding capacity for a single bidder is 500 MW, subject to satisfying the technical and financial criteria. Further, the project capacity should be in multiples of 25 MW beyond the minimum project capacity of 25 MW.
The net worth of bidders for the last financial year should not be less than ₹10 million (~$122,486)/MW. The minimum annual turnover of bidders during the last financial year should be at least ₹3.52 million (~$43,115)/MW of the quoted capacity.
Bidders should have an internal resource generation capability in the form of profit before depreciation, interest, and taxes for a minimum amount of ₹703,400 (~$8,615)/MW of the quoted capacity as of the last day of the previous financial year.
They should also have approval from lending institutions for a minimum amount of ₹879,000 (~$10.766)/MW of the quoted capacity toward meeting the working capital requirement of the project.
The responsibility of getting the grid connectivity with the state transmission utility, i.e., the Maharashtra State Electricity Transmission Company (MSETCL), will be of the successful bidder.
The declared capacity utilization factor (CUF) should not be less than 19% over a year. The developers should maintain generation to achieve annual CUF within + 10% and -15% of the declared value until the end of 10 years from the commercial operation date, subject to the CUF remaining a minimum of 17% and within +10% and -20% of the CUF after that until the end of 25 years.
The solar modules to be used in the projects must be warranted for peak output wattage, which should not be less than 90% at the end of 10 years and 80% at the end of 25 years from the commercial operation date of the project.
MSEDCL has stated that the modules to be used for the project should be from the approved list of models and manufacturers issued by the Ministry of New and Renewable Energy.
Recently, NTPC Renewable Energy and Avaada Energy were <a href="https://mercomindia.com/ntpc-avaada-winners-msedcls-500-mw-solar-auction/" target="_blank" rel="noopener">declared</a> winners in MSEDCL’s auction to procure power from 500 MW of grid-connected inter or intrastate solar projects (Phase-VIII) on a long-term basis. The state distribution company had <a href="https://mercomindia.com/msedcl-issues-tender-to-procure-power-from-500-mw-of-solar-projects/" target="_blank" rel="noopener">floated</a> the tender in July this year to procure power from 500 MW inter or intrastate grid-connected solar power projects through long-term contracts.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a>, MSEDCL has floated tenders for 19.2 GW of solar projects.

MSEDCL Invites Bids to Procure Power from 500 MW of Intrastate Solar Projects

The Maharashtra Electricity Regulatory Commission (<a href="http://www.mercindia.org.in/" target="_blank" rel="noopener noreferrer">MERC</a>) has 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. (MSETCL) and Maharashtra Energy Development Agency (MEDA).
The company had requested the commission to direct MSETCL to immediately refund the amount of ₹15.517 million (~$0.22 million) and to direct MEDA to refund ₹20 million (~$0.29 million) on or before March 31, 2019.
After going through submissions made, the MERC noted that the company had commissioned its 25.7 MW project on March 6, 2015, connected with 132 kV substation of MSETCL. It had executed its EPA with MSEDCL on June 7, 2004, which was amended on February 22, 2011, for a change of connectivity from 33 kV to 132 kV level. This EPA was further amended on March 18, 2014, for capacity augmentation from 16 MW to 25.7 MW.
The commission found that request for a refund of ₹15.517 million (~$0.22 million) from MSETCL is without taking into consideration the relevant provisions agreed between the parties, especially with regards to the stipulations in the government policies applicable during that period.
As per the policy, the upper limit for the refund for evacuation cost for cogeneration projects is ₹40 million (~$0.58 million). The commission stated that MSETCL has to recover the additional expenditure of ₹2.287 million (~$0.033 million) from the bagasse project company.
For the request for a refund of ₹20 million (~$0.29 million) from MEDA, the commission noted that the electricity agency must act in line with the provisions of the government policy and therefore, the petitioner will approach MEDA with  the documents under provisions of the state government policies for the refund of ₹20 million after settling the dues of MSETCL amounting to ₹2.287 million (~$0.033 million). MEDA must refund the amount within a month of document submission.
<a href="https://mercomindia.com/msedcl-invite-bids-bagasse-projects/" target="_blank" rel="noopener noreferrer">Recently</a>, the Maharashtra commission approved the procurement of bagasse-based co-generation power by MSEDCL for FY 2018-19 for meeting its non-solar renewable purchase obligations.
Image credit: Ulka Industries

Maharashtra Entities Asked to Refund Evacuation Cost Incurred by Bagasse-Based Project

The, <a href="http://www.mercindia.org.in/" target="_blank" rel="noopener">Maharashtra Electricity Regulatory Commission (MERC)</a> has dismissed a petition filed by Olam Agro India Pvt. Ltd. (OAIPL) to directing MSETCL to comply with MERC’s previous impugned order. The commission observed that since the order in question is already under review, the current petition stands dismissed.
OAIPL has established a 20 MW bagasse-based co-generation power plant at Chennati Rajgoli village, Chandgad tehsil, Kolhapur district. It had filed a petition seeking reimbursement of cost of power evacuation arrangement for its bagasse-based plant. MERC passed an order on May 2, 2018.
In this order, the commission directed MSETCL to reimburse the lower of the total cost of power evacuation arrangement for the petitioner’s bagasse-based plant.
The commission stated, “In view of the foregoing, MSETCL shall reimburse the lower of total cost as per its approved estimated cost or the actual verified cost incurred by Olam Agro, net of the amount paid by MEDA, within two months, along with applicable interest from the date the respective installments were due till the date of payment. MSETCL is entitled to the expenses incurred towards the evacuation arrangements through its aggregate revenue requirement, but not to the interest amount arising from the delay in payment,”
However, MSETCL did not comply with the commission’s above directives, despite OAIPL’s follow-up.
The commission also noted that MSETCL had also filed a petition seeking a review of the May 2 2018 impugned order. In its petition, MSETCL requested the commission to consider the Maharashtra government’s policy and the commission’s order in number of various renewable energy projects previously approved by MERC.
The DISCOM argued that deviation from this order will increase the project’s financial burden by ₹5 billion (~$67.6 million) and ultimately the common consumer would bear the brunt in the form of an increase tariff. Further, MSETCL submitted that the delay in compliance with the impugned order was not intended, and apologized for this oversight.
<a href="https://mercomindia.com/maharashtra-200-mw-bagasse-projects/" target="_blank" rel="noopener">Recently,</a> <a href="https://www.merc.gov.in/mercweb/faces/merc/common/outputClient.xhtml" target="_blank" rel="noopener">MERC</a> had approved <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3tv6uoJXYAhVD8IMKHepjCLoQFggpMAA&amp;url=http%3A%2F%2Fwww.mahadiscom.com%2F&amp;usg=AOvVaw2QxivFcdTQaLrnZ2QmlQTP" target="_blank" rel="noopener">MSEDCL</a>’s proposal to procure long-term bagasse-based cogeneration power through competitive bidding. This ruling is expected to pave the way for grid-connectivity and a power purchase agreement (PPA) for 200 MW of bagasse-based cogeneration projects in the state. It will also attract developers active in the bagasse-based cogeneration project sector, as the PPA will be long-term at 20 years, compared to the previously accepted medium-term 13-year PPA.
Delay in the scheduled commissioning date of power projects due to unavailability of evacuation infrastructure has been plaguing the sector across all power generation segments including solar and wind. In a recent <a href="https://mercomindia.com/delay-transmission-system-solar-attract-penalty/" target="_blank" rel="noopener">notification</a> issued by the Ministry of New and Renewable Energy (MNRE), any delay in the scheduled commissioning date of solar projects due to unavailability of internal execution or transmission system by solar park developers will now be liable to a penalty. This step if implemented strictly could prove positive for the sector.

Maharashtra Electricity Commission Dismisses Bagasse-Based Developer’s Petition

The <a href="http://www.mercindia.org.in/" target="_blank" rel="noopener">Maharashtra Electricity Regulatory Commission (MERC)</a> has passed an order directing the Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) to pay a total sum of ₹5.5 million (~ $0.075 million) to a hydro power project developer. MSETCL must pay the amount to Mahati Hydro Power Projects Pvt. Ltd. towards the balance payment for the construction of the evacuation arrangement beyond the inter-connection point. The payment has to be made within three months from the date of the order (October 26, 2018).
The commission passed the order in response to the review petition filed by MSETCL, seeking a review of commission’s order dated April 10, 2018.
It should be noted that the original petition was filed by Mahati before the commission, seeking few reliefs. Mahati had requested the commission to direct MSETCL and/or Maharashtra Energy Development Authority to pay ~ ₹14.4 million (~ $0.197 million) towards the balance payment for the construction/creation of the evacuation arrangement beyond the inter-connection point, and to pay interest on the unpaid dues from their respective due dates. To this petition, the commission passed the following ruling on April 10, 2018.
“In view of the foregoing, MSETCL shall reimburse ₹8.998 million (~ $0.123 million), which is the approved cost of the evacuation arrangements (₹ 17.536 million) minus the metering cost (₹ 3.038 million), and minus ₹ 5.5 million (~ $ 0.0752 million) provided by Maharashtra Energy Development Authority to Mahati within two months, along with applicable interest from the date the respective installments were due till the date of payment. MSETCL is entitled to the expenses incurred towards the evacuation arrangements through its aggregate revenue requirement, but not to the interest amount arising from the delay in payment.”
Post the above order, MSETCL had filed a review petition, stating that the developer’s refund request was not processed as it had failed to submit a long-term energy purchase agreement.
<a href="https://mercomindia.com/small-hydro-developer-relief-discoms-non-compliance/" target="_blank" rel="noopener">Recently,</a> <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjA_q--oJXYAhWI2YMKHfUxA-EQFggpMAA&amp;url=http%3A%2F%2Fwww.mercindia.org.in%2F&amp;usg=AOvVaw1c9yQPF60gFUZwOCtJu29q" target="_blank" rel="noopener">MERC</a> had provided relief to another small hydro project developer of a 10 MW Radhanagari small hydro power project in Maharashtra. MERC had provided this relief due to non-compliance by the Maharashtra State Electricity Distribution Company Limited (<a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3tv6uoJXYAhVD8IMKHepjCLoQFggpMAA&amp;url=http%3A%2F%2Fwww.mahadiscom.com%2F&amp;usg=AOvVaw2QxivFcdTQaLrnZ2QmlQTP" target="_blank" rel="noopener">MSEDCL</a>).
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