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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has approved a short-term power purchase for 3 MW of non-solar, non-wind power on a round-the-clock (RTC) basis by Nidar Utilities Panvel (<a href="https://www.tuco.in/about.html" target="_blank" rel="noopener">NUPLLP</a>) from February 1, 2024, to January 31, 2025, at ₹5 (~$0.06)/kWh at the state periphery.</p>
<p>The Commission also directed Nidar Utilities to initiate the process for long-term power procurement through a tender or open access in advance so that it can tie up its base load requirement through a long-term power purchase agreement (PPA).</p>
<p><strong>Background</strong></p>
<p>Nidar Utilities, a distribution licensee serving the Panvel Special Economic Zone (SEZ) area in Raigad District, meets its 5.5 MW power demand through two short-term PPAs.</p>
<p>One PPA, with Vindhyachal Hydro Power (VHPPL), provides 3 MW of power from February 2023 to January 2024. The other, with GMR Energy Trading, offers 3 MW RTC power from July 2023 to June 2024.</p>
<p>As the PPA with VHPPL expired on January 31, 2024, Nidar Utilities sought a new power source to sustain its 5.5 MW base load from February 1, 2024. To address this, Nidar Utilities issued a tender on September 12, 2023, aiming to procure 3 MW of non-solar, non-wind power for continuous delivery from February 1, 2024, to January 31, 2025.</p>
<p>Following public notice, VHPPL submitted a bid for power from its small hydro project in Maharashtra. The bid concluded with a final price of ₹5 (~$0.06)/kWh, lower than previous rates approved by the Commission.</p>
<p>Consequently, the contract was awarded to VHPPL, with a letter of award issued on October 5, 2023, and the PPA executed on October 11, 2023, pending Commission approval.</p>
<p>Anticipating a potential demand increase to 7 MW by March 2024 and with the existing PPA of 3 MW with GMRETL ending in June 2024, NUPLLP will initiate the process of short-term power procurement for the additional quantum based on the demand of power starting April 2024 and will approach the Commission for adoption of tariff.</p>
<p>In response to queries about procuring renewable power from the Solar Energy Corporation of India (SECI) at potentially lower rates, Nidar Utilities explained that its primary consumer, a data center accounting for 90% of its power consumption, requires dependable RTC power due to high energy needs.</p>
<p>Lower rates from SECI tenders, typically for larger solar or solar-wind hybrid projects, do not align with Nidar Utilities’ 3 MW RTC requirement, particularly during peak demand times.</p>
<p>Additionally, wind energy’s variability poses operational challenges. VHPPL’s 3 MW plant, with a projected annual generation of around 15 MU and a capacity utilization factor of 60%, better matches Nidar Utilities&#8217; demand profile and operational needs.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission acknowledged NUPLLP&#8217;s efforts to address its 5.5 MW demand through existing and proposed PPAs. With the ongoing 3 MW PPA with VHPPL expiring on  January 31, 2024, and a short-term PPA with GMR ETL concluding in June 2024, NUPLLP&#8217;s proposal to secure 3 MW of RTC power assures a steady power supply for its consumers.</p>
<p>NUPLLP&#8217;s competitive bidding process resulted in a rate of ₹5 (~$0.06)/kWh, aligning with the existing rate from VHPPL. Despite varying rates on the Discovery of Efficient Electricity Price (DEEP) portal (₹5 (~$0.06) to ₹7.9 (~$0.095)/ KWh) and the power exchange (₹5.45 (~$0.066) to ₹5.8 (~$0.07)/ KWh), the Commission found the ₹5 (~$0.06) reasonable and reflective of the current market conditions.</p>
<p>Furthermore, NUPLLP&#8217;s selection of VHPPL, offering power with a Capacity Utilization Factor of 60%, complements NUPLLP&#8217;s load profile, minimizing variability in generation while meeting renewable purchase obligation targets efficiently.</p>
<p>Based on these considerations, the Commission approved NUPLLP&#8217;s short-term power purchase from February 1, 2024, to January 31, 2025, at ₹5 (~$0.06)/kWh. The Commission approved the PPA between NUPLLP and VHPPL.</p>
<p>Recognizing NUPLLP&#8217;s intention to explore long-term power procurement, the Commission permitted NUPLLP to continue short-term procurement against the expiring PPA. However, NUPLLP was urged to initiate the long-term procurement process promptly to secure its base load requirement through future PPAs.</p>
<p>In August, the Commission <a href="https://www.mercomindia.com/maharashtra-amendments-rpo-compliance-regulations/" target="_blank" rel="noopener">proposed</a> amendments to the RPO, its Compliance and Implementation of Renewable Energy Certificate Framework Regulations, 2019.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to stay informed about critical updates from the renewable industry.</p>


Maharashtra Approves Nidar Utilities’ 3 MW RTC Renewable Power Procurement

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