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					</table><p>Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has approved Maharashtra State Electricity Distribution Company’s (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) proposed tariff of ₹3.60 (~$0.042)/kWh to procure 13 MW of wind-solar hybrid power for 25 years.</p>
<p><strong>Background</strong></p>
<p>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.</p>
<p>The Commission had <a href="https://www.mercomindia.com/merc-tariffs-1601-mw-hybrid-power" target="_blank" rel="noopener">approved</a> 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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>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.</p>
<p>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.</p>
<p>Last year, MERC <a href="https://www.mercomindia.com/merc-allows-solar-developers-bcd-compensation-claims" target="_blank" rel="noopener">ordered</a> 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.</p>
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MERC Approves Tariff for Procuring 13 MW Wind-Solar Hybrid Power


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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 the tariffs of ₹3.60 (~$0.0428) to ₹3.62 (~$0.0431)/kWh for the Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) to procure 1,601 MW of wind-solar hybrid power.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-71329 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1.png" alt="Tariff Adoption by MERC for MSEDCL's 1,601 MW Solar-Wind Hybrid Power Projects" width="757" height="281" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1.png 757w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1-300x111.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1-650x241.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1-624x232.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/Tariff-Adoption-by-MERC-for-MSEDCLs-1601-MW-Solar-Wind-Hybrid-Power-Projects-1-600x223.png 600w" sizes="(max-width: 757px) 100vw, 757px" /></a></p>
<p><strong>Background </strong></p>
<p>MSEDCL <a href="https://www.mercomindia.com/maharashtra-500-mw-wind-solar-hybrid">issued</a> 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.</p>
<p>In the e-reverse auction, JSW Neo and Juniper Green <a href="https://www.mercomindia.com/msedcl-wind-solar-hybrid-auction-tranche-iii/" target="_blank" rel="noopener">quoted</a> ₹3.60 (~$0.0431)/kWh to win 200 and 75 MW, respectively.</p>
<p>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.</p>
<p>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&#8217;s total capacity to 850 MW and 600 MW, respectively.</p>
<p>Avaada’s final tariff rate was set at ₹3.61 (~$0.0430)/kWh, the weighted average tariff discovered in the e-reverse auction.</p>
<p>With the greenshoe option, the total power offered was 1,601 MW.</p>
<p>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.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>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.</p>
<p>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&#8217;s bidding process—ranging from ₹3.60 (~$0.043) to ₹3.62 (~$0.043)/kWh —were on par with prevailing market trends.</p>
<p>Additionally, since the projects are within Maharashtra, interstate transmission charges and losses do not apply, making the proposed tariffs even more competitive.</p>
<p>The Commission also considered MSEDCL&#8217;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&#8217;s renewable energy goals.</p>
<p>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.</p>
<p>Recently, MERC <a href="https://www.mercomindia.com/maharashtra-regulator-power-procurement/" target="_blank" rel="noopener">gave</a> the green light for the MSEDCL to procure an additional 5,991 MW of solar power through competitive bidding.</p>
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MERC Approves Tariffs for Procuring 1,601 MW of Wind-Solar Hybrid Power


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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has adopted a weighted average tariff of ₹4.08 (~$0.049)/kWh for Maharashtra State Electricity Distribution Company&#8217;s (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) composite tender to procure 1,600 MW of thermal power and 5,000 MW of solar power.</p>
<p>The Commission has finalized a tariff of ₹5.39 (~$0.065)/kWh for thermal power, which includes a fixed charge of ₹3.67(~$0.044)/kWh and a fuel charge of ₹1.72 (~$0.021)/kWh. The tariff for solar power is set at ₹2.70 (~$0.033)/kWh.</p>
<p><strong>Background</strong></p>
<p>MSEDCL floated a tender on March 13, 2024, receiving four bids totaling 16,500 MW capacity.</p>
<p>The financial bids were opened on August 7, 2024, with quoted weighted average tariffs ranging from ₹4.38 (~$0.053)/kWh to ₹4.86 (~$0.058)/kWh.</p>
<p>The tender process faced legal challenges, with a Public Interest Litigation filed in the Bombay High Court questioning its validity. However, as no stay was granted, MERC proceeded with its evaluation.</p>
<p>Adani Power emerged as the lowest bidder, quoting ₹5.39 (~$0.065)/kWh for thermal and ₹2.70 (~$0.032)/kWh for solar power.</p>
<p>The composite tender aimed to offset higher thermal costs with cheaper solar tariffs.</p>
<p>An e-reverse auction conducted on September 9, 2024, led to the final discovery of ₹4.08 (~$0.048)/kWh weighted average tariff.</p>
<p><strong>Commission&#8217;s Analysis</strong></p>
<p>The Commission noted that MSEDCL conducted a transparent, competitive bidding process per the guidelines notified by the Government of India.</p>
<p>MSEDCL prepared bidding documents for thermal power procurement based on Guidelines dated March 6, 2019, and Model Bidding documents dated March 5, 2019. For solar power procurement, MSEDCL followed Guidelines dated July 28, 2023.</p>
<p>The Commission approved the concept of composite procurement, noting that the cheaper solar tariff would offset the higher per-unit cost of thermal power. This approach is expected to lead to a reduction in MSEDCL&#8217;s average power purchase cost.</p>
<p>To ensure the weighted average tariff is maintained throughout the PPA period, MSEDCL has provided a compensation mechanism in the solar PPA.</p>
<p>For thermal power, MERC compared the discovered tariff of ₹5.39 (~$0.064)/kWh with recent offers from NTPC (₹5.49/kWh) and Mahanadi Basin Power (₹5.20 (~$0.062)/kWh), concluding that Adani Power&#8217;s bid was competitive.</p>
<p>For solar power, the discovered tariff of ₹2.70/kWh was compared with recent SECI tenders [ranging from ₹2.47 (~$0.029) to ₹2.58 (~$0.030)/kWh] and GUVNL tenders [₹2.62 (~$0.0313) to ₹2.67(~$0.0319)/kWh]. While slightly higher, MERC noted that interest rates and off-taker risk profiles could justify the difference.</p>
<p>The Commission found the overall weighted average tariff of ₹4.08 (~$0.048)/kWh reasonable and reflective of current market conditions.</p>
<p>In June this year, the MERC <a href="https://www.mercomindia.com/merc-compensation-gst-rate-change" target="_blank" rel="noopener">ruled</a> in favor of TPSL, declaring the increase in GST rates as a &#8220;Change in Law&#8221; event for its 300 MW wind-solar hybrid power project.</p>
<p>In July 2024, the Commission also <a href="https://www.mercomindia.com/merc-msedcl-procure-solar-thermal-power" target="_blank" rel="noopener">approved</a> MSEDCL&#8217;s petition to procure 5,000 MW of solar and 1,600 MW of thermal power.</p>


Maharashtra Adopts ₹4.08/kWh Tariff for 6.6 GW Thermal-Solar Procurement


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					</table><p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/index.html" target="_blank" rel="noopener">CERC</a>) has approved a tariff of ₹2.60 (~$0.03)/kWh for a combined capacity of 600 MW from solar power projects of Solar Energy Corporation of India Limited (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>). The Commission also approved a trading margin of ₹0.07 ($0.00084)/kWh.</p>
<p><strong>Background</strong></p>
<p>SECI filed a petition under Section 63 of the Electricity Act, 2003 for the adoption of tariff for the 600 MW solar power projects (Tranche-XI) connected to the Inter-State Transmission System (ISTS) and selected through the competitive bidding process.</p>
<p>The respondents are <u><a href="https://www.sael.co/" target="_blank" rel="noopener">SAEL Industries</a></u>, SAEL Solar MHP1, SAEL Solar MHP2, and Gujarat Urja Vikas Nigam (<u><a href="https://www.guvnl.com/" target="_blank" rel="noopener">GUVNL</a></u>).</p>
<p>The petitioner also sought approval of a trading margin of ₹0.07 (~$0.0084)/kWh as agreed by distribution companies (DISCOMs).</p>
<p>SECI submitted that it <a href="https://www.mercomindia.com/seci-floats-2-gw-solar-projects-in-india" target="_blank" rel="noopener">released</a> a tender on March 31, 2023, including a draft power purchase agreement (PPA) and power supply agreement (PSA) for selecting 2,000 MW ISTS-connected solar power projects (Tranche-XI).</p>
<p>Ten bidders meeting eligibility criteria participated in the e-reverse auction, resulting in six bidders being <a href="https://www.mercomindia.com/sael-renew-eden-jakson-winners-secis-solar-auction" target="_blank" rel="noopener">awarded</a> 2,000 MW, with letters of award being issued on July 28, 2023. SECI signed two separate PPAs on January 11, 2024, with SAEL solar MHP1 and SAEL solar MHP2 (project companies of the successful bidder, SAEL Industries) for 600 MW each at ₹2.60 (~$0.03)/kWh.</p>
<p>Additionally, a PSA was signed on December 30, 2023, with GUVNL for 600 MW. The projects are expected to be commissioned projects in 2024-25, with a competitive and beneficial price, according to SECI.</p>
<p>The scheduled commissioning date is June 30, 2025, and as per the regulatory framework, solar projects declaring commercial operation by this date are eligible for a 25-year waiver of ISTS charges. To avoid ISTS charges due to any delay in tariff adoption by the Commission, SECI requested a resolution of the petition.</p>
<p>GUVNL and SAEL Industries stated they have no objections to the Commission&#8217;s adoption of the tariff as requested.</p>
<p><strong>Commission’s Analysis </strong></p>
<p>The Commission noted that successful bidder selection has concluded, and tariff discovery occurred through transparent, competitive bidding, complying with Ministry of Power guidelines under Section 63 of the Act. Consequently, the Commission said it was adopting the agreed individual tariff for the 600 MW solar power project, based on executed PPAs and PSAs, remaining valid throughout their respective periods.</p>
<p>The Commission also endorsed a trading margin of ₹0.07($0.00084)/kWh.</p>
<p>The petitioner can approach the Commission for tariff adoption concerning the balance capacity once agreements for such capacity are finalized.</p>
<p>Recently, CERC <a href="https://www.mercomindia.com/cerc-upholds-wind-million-bank-guarantee-release" target="_blank" rel="noopener">ruled</a> that the delay in adopting the tariff order by the Uttar Pradesh Power Corporation is a valid reason to claim an extension in the commissioning date for a wind energy project.</p>
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CERC Approves ₹2.60/kWh Tariff for SECI’s 600 MW Solar Projects


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					</table><p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has given the green light for a tariff of ₹3.26 (~$0.03)/kWh for a 15 MW grid-connected floating solar project linked to the Bhakra Beas Management Board (<a href="https://bbmb.gov.in/index.htm" target="_blank" rel="noopener">BBMB</a>) Inter-State Transmission System (ISTS).</p>
<p>BBMB and SJVN Green Energy, a subsidiary of <a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a>, have inked a power purchase agreement (PPA) to allocate power to BBMB&#8217;s partner states and nominated entities.</p>
<p><strong>Background</strong></p>
<p>BBMB had submitted a petition under Section 63 of the Electricity Act, 2003, seeking tariff approval for their floating solar project connected to its ISTS network.</p>
<p>The Ministry of New &amp; Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) assigned BBMB a target of 500 MW for solar power projects, with BBMB exploring solar installations on vacant land, water bodies, and rooftops to meet renewable purchase obligations of partner states.</p>
<p>BBMB authorized the Solar Energy Corporation of India Limited (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) as a project management agency to solicit proposals for the 15 MW Nangal Pond floating solar project in Himachal Pradesh, adhering to the guidelines.</p>
<p>SECI published the tender document and a draft PPA for the project on July 2, 2020.</p>
<p>Three bids were received in response, and two met the technical requirements. Following an e-reverse auction on February 25, 2022, SJVN emerged as the winning bidder with a tariff of ₹3.26 (~$0.03)/kWh.</p>
<p>After approval from BBMB&#8217;s board, SECI issued a Letter of Intent and an amendment to the successful bidder, SJVN, on October 4, 2022, and December 1, 2022, respectively.</p>
<p>Subsequently, a PPA was executed between BBMB and the successful bidder, SJVN Green Energy, the special purpose vehicle (SPV) of SJVN, on December 23, 2022.</p>
<p>BBMB&#8217;s operational expenses are shared among partner states (Punjab, Haryana, Himachal Pradesh, and Rajasthan) based on a pre-agreed ratio, and energy generated is likewise distributed among these states.</p>
<p><strong>Commission&#8217;s Analysis</strong></p>
<p>The Commission noted that the parties had conducted the bidding process as per the guidelines.</p>
<p>It noted that BBMB, as the petitioner, will procure power through a PPA with SJVN, distributing it to partner states, including Punjab, Haryana, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, according to predefined proportions.</p>
<p>The Commission also noted that BBMB did not function as an intermediary procurer or trader in this transaction, and no power supply agreement was involved, differing from other procurement methods.</p>
<p>Power generated by SJVN Green Energy will be distributed among partner states/nominated entities in proportion to BBMB&#8217;s power generation.</p>
<p>The Commission affirmed the transparency of the competitive bidding process, with the tariff for the floating solar power project being determined in line with the solar guidelines issued by the Ministry of Power under Section 63 of the Act.</p>
<p>Recently, in response to a significant surge in power demand and subsequent reports of load-shedding incidents, the Central Electricity Regulatory Commission (CERC) <a href="https://www.mercomindia.com/cerc-requisition-power-needs" target="_blank" rel="noopener">took</a> a series of strategic measures to mitigate the current power shortage and enhance the grid’s efficiency.</p>
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SJVN to Supply Solar Power at ₹3.26/kWh from a 15 MW Floating Project in Himachal

<p>The Gujarat Urja Vikas Nigam Limited (<a href="https://www.gseb.com/guvnl/index.aspx" target="_blank" rel="noopener noreferrer">GUVNL</a>) recently filed a petition with the Gujarat Electricity Regulatory Commission (<a href="http://www.gercin.org/" target="_blank" rel="noopener noreferrer">GERC</a>) to get the tariff approved for purchasing surplus solar power generated by Micro, Small, and Medium Enterprises (MSMEs) at ₹1.75 ($0.025)/kWh.</p>
<p>The effective date of the petition, once approved by the GERC, will be September 26, 2019.</p>
<p>In September 2019, the Gujarat government <a href="https://mercomindia.com/gujarat-relaxes-solar-policy-benefit-msme/" target="_blank" rel="noopener noreferrer">relaxed</a> the state’s solar policy to allow MSMEs to install solar projects that are more than 100% of their sanctioned load or contract demand.</p>
<p>The latest guidelines issued by the Gujarat government say that MSMEs would be able to sell the excess solar energy to the state government at the cost of ₹1.75/kWh.</p>
<p>The petition filed by GUVNL also states that MSMEs would be allowed to set up ground-mounted projects under open access to avail the benefits while also enabling them to procure solar power from a third party.</p>
<p>According to the petition, MSMEs are defined based on the investment in their manufacturing enterprises which is listed as &#8211; not be more than ₹2.5 million ($34,700) for micro-enterprises,  more than ₹2.5 million ($34,700) and less than ₹50 million ($694,000) for small enterprises and ₹50 million ($694,000) and less than ₹100 million ($1.4 million) for medium enterprises.</p>
<p>The petition also states that the transmission and wheeling charges and losses for wheeling of power will apply for both captive use and third-party sale projects under open access. Cross-subsidy surcharge and additional surcharge will apply to normal open access consumers under third-party sale. Also, electricity duty will apply to consumers. The petition also lays down the rules for energy accounting, which clarify that it will be carried out on a 15-minute time block basis.</p>
<p><a href="https://mercomindia.com/gerc-impose-additional-surcharge-open-access/" target="_blank" rel="noopener noreferrer">Earlier this year</a>, the state commission had passed an order stating that no additional surcharge will apply to consumers of four of Gujarat’s DISCOMs for utilizing power through open access between April and September 2019.</p>
<p>In <a href="https://mercomindia.com/gujarat-commission-discoms-power-solar-rpo/" target="_blank" rel="noopener noreferrer">August 2019</a>, the GERC had passed an order allowing GUVNL and other distribution companies in the state to procure power from small solar projects of capacity up to 4 MW to meet their renewable purchase obligations.</p>


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