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MERC Rejects CPPA's Request for Wind-Solar-Thermal Hybrid Power Projects

The Maharashtra Electricity Regulatory Commission (MERC) has rejected the Captive Power Producers Association’s (CPPA) petition to amend existing regulations and allow the establishment of wind-solar-thermal hybrid power projects. The CPPA had requested permission to replace captive thermal projects with renewable hybrid power projects in phases and sought interim relief for connectivity from Maharashtra State Electricity Distribution (MSEDCL) and Maharashtra State Electricity Transmission (MSETCL-STU).

MERC acknowledged the validity of the CPPA's request for regulatory amendments but emphasized that significant changes would be needed to integrate renewable and thermal power sources. The Commission noted that the existing regulations treat renewable energy and thermal power separately, which makes their integration complicated. Moreover, the Bundling Scheme issued by the Ministry of Power (MoP) in 2018, which allows power generators to co-locate renewable energy sources with thermal projects, does not specifically address open access or captive transactions, and it lacks provisions for banking, which is essential for renewable energy transactions.

While MERC saw merit in the concept of bundling renewable energy with thermal power generation, it stressed that substantial regulatory changes across various sectors—such as open access, demand-side management, grid code, and renewable energy tariffs—would be required to support such integration at the state level. Therefore, it rejected the petition and instructed the Grid Coordination Committee to conduct a study to explore the possibility of implementing the MoP Bundling Scheme in Maharashtra. The committee is expected to submit a draft framework within six months for MERC’s review, which could lead to the amendment of existing regulations or the introduction of new ones to facilitate the hybrid model.

The Commission's decision underscores the complexity of integrating renewable and non-renewable energy systems, especially under current regulations, and highlights the need for a thorough consultation process before any regulatory changes can be made.