The Maharashtra Electricity Regulatory Commission (MERC) has given the green light for a major long-term solar power procurement by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). This approval allows MSEDCL to purchase 1,475 MW of solar energy from NHPC Limited, a move aimed at meeting the state’s growing electricity demand and fulfilling its renewable purchase obligations. The decision was issued under Case No. 81 of 2024 and represents an important step in Maharashtra’s commitment to increasing its share of renewable energy in the power mix.

MSEDCL had filed the petition on April 24, 2024, seeking approval for the adoption of a tariff under Section 63 of the Electricity Act, 2003. The tariff was determined through a competitive e-reverse auction conducted by NHPC. After the bidding process, the final rate was fixed at ₹2.60 per unit, which includes a trading margin of Rs. 0.07 per unit payable to NHPC. The agreement covers a period of 25 years from the commercial operation date of the projects, ensuring a long-term supply of clean energy to the state.

In reviewing the petition, MERC analyzed several critical factors. The commission examined the quantity of power proposed for procurement, the competitiveness of the tariff, the trading margin, and the availability of the inter-state transmission corridor for the evacuation of power. It found that MSEDCL’s plan aligns with the Central Electricity Authority’s Resource Adequacy Study, which indicates the need for significant additions of solar and wind capacity by 2033-34. The procurement is also expected to help MSEDCL address both current and future shortfalls in meeting its renewable purchase obligations.

MERC emphasized that the tariff discovered through the competitive bidding process and adopted by the Central Electricity Regulatory Commission (CERC) is final and does not require re-determination. The trading margin of Rs. 0.07 per unit was approved as it conforms with the Competitive Bidding Guidelines, 2023. This approach ensures transparency and fairness while supporting a cost-effective procurement strategy for renewable energy.

The commission also highlighted the importance of a reliable transmission corridor. While the power supply agreement defines the delivery point, MSEDCL is responsible for evacuating the power beyond that point. MERC directed MSEDCL to coordinate closely with the State Transmission Utility (STU) to ensure the timely implementation of necessary transmission capacity enhancements. This is critical for maintaining the stability of the power supply and avoiding any delays or disruptions in the distribution of the procured solar power.

By approving this long-term procurement and the corresponding Power Supply Agreement with NHPC, MERC has enabled MSEDCL to secure a substantial portion of renewable energy for the state. The 1475 MW of solar power will contribute directly to the fulfillment of Maharashtra’s renewable purchase obligations, supporting the state’s broader energy transition goals. This procurement not only strengthens the state’s clean energy portfolio but also reinforces its commitment to sustainable development and the promotion of renewable energy sources for a greener future.

This development marks a significant milestone in Maharashtra’s journey toward renewable energy expansion, providing a long-term, cost-effective, and reliable solution to meet the growing electricity needs of the state while advancing its environmental and sustainability objectives.