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MERC Approves 400 MW Solar Power Procurement by MSEDCL from Avaada at Rs2.79/kWh

The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company Limited’s (MSEDCL) request to procure 400 MW of solar power from Avaada Energy at a tariff of Rs2.79 per kWh. This decision follows a competitive and transparent tender floated by MSEDCL in February 2023 to procure 500 MW of solar power with a greenshoe option of an additional 500 MW, both for a 25-year duration.

Initially, MSEDCL selected Solar Arise Energy Limited (SAEL) for 100 MW at Rs2.87 per kWh and Avaada Energy for 400 MW at Rs2.88 per kWh. After negotiations, Avaada matched the lowest tariff of Rs2.87, while SAEL did not respond to the request for tariff matching. MSEDCL opted not to utilize the greenshoe option due to a separate 1,475 MW long-term solar power agreement with NHPC at Rs2.60 per kWh.

MERC noted that the bidding process complied with government regulations and reflected current market tariffs. The Commission also recognized that this procurement supports MSEDCL’s renewable purchase obligation (RPO) targets.

This approval follows other recent MERC tariff decisions, including a Rs3.65 per kWh tariff for 250 MW wind power procurement by Adani Electricity Mumbai from JSW Neo Energy.