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Maharashtra Regulator Approves Rs 3.65/kWh Tariff for AEML-D's 250 MW Wind Power Procurement

The Maharashtra Electricity Regulatory Commission (MERC) has approved Adani Electricity Mumbai (AEML-D)'s proposal to procure 250 MW of wind power from JSW Neo Energy at a tariff of Rs3.65/kWh for 25 years. AEML-D must finalize its Power Purchase Agreement (PPA) with JSW Neo Energy within 30 days of the approval.

AEML-D filed a petition on September 27, 2024, citing a need for additional wind power to meet its Renewable Purchase Obligation (RPO) and growing electricity demand. Its peak demand is expected to increase from 2,056 MW (FY 2025) to 2,196 MW (FY 2030), with an anticipated shortfall of 450-950 MW during evening peak hours.

The bidding process started on February 29, 2024, and received offers from three companies. JSW Neo Energy submitted the lowest bid at Rs3.78/kWh, which was later negotiated down to Rs3.65/kWh. This rate was found to be lower than the Rs3.60–Rs3.70/kWh range from recent Solar Energy Corporation of India (SECI) auctions and below AEML-D’s long-term power purchase costs.

MERC approved the tariff, considering that SECI’s recent wind energy tariffs ranged from Rs3.60 to Rs3.82/kWh, and noted that additional costs like transmission charges would increase SECI’s landed cost above Rs4/kWh.

Key reasons for approval:

• Transparent bidding process aligned with Ministry of Power guidelines
• Intrastate transmission avoids additional network access charges
• Ensures resource adequacy for reliable power supply
• Supports compliance with MERC’s RPO Regulations, 2024