Avaada Gets Nod From MERC for 250 MW Solar Project PPA With MSEDCL

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In its recent order, MERC had guided both parties i.e. Avaada and MSEDCL to finish the formalities under the RfS as well as execute the PPA by March 2, 2021.

Avaada Energy Pvt Ltd had filed this Case dated 19 January 2021 against Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) seeking issuance of appropriate Order(s)/ directions(s) to MSEDCL inter alia executing the Power Purchase Agreement (PPA)pursuant to the adoption of tariff by the Commission vide its Order dated 15 May 2020 and Letter of Award (LoA) dated 17 June 2020. Further, AEPL was also seeking Orders / directions restraining MSEDCL from taking any coercive action.

AEPL also had requested for orders/directions restraining MSEDCL from taking any forceful action like forfeiting the Earnest Bank Deposit (EMD) or encashment of Bank Guarantee in the direction of EMD.

MSEDCL had issued Request for Selection (RfS), on 27 December 2019, for procurement of power on long term basis through competitive bidding process followed by reverse eauction from 500 MW intra state grid connected solar photovoltaic power projects.

Out of 500 MW capacity tendered, the following capacity was subscribed and allotted to the 2 bidders

  1. Tata Power Renewable Energy Ltd. 100 2.90
  2. Avaada Energy Pvt. Ltd. 250 2.90

The MERC has partially enabled the pleas made by Avaada. The Commission directed both the parties to complete the formalities under the RfS including submission of PBG from the proper entity and sign PPA of 250 MW at a tariff rate adopted by the Commission in Order dated 15 May 2020 within 2 weeks from issuance of the Order.

Out of these two weeks, AEPL has been directed to comply with all its obligations within one week of this order and MSEDCL will thereafter in one-week scrutinise and sign the PPA as per the provisions of the RfS. MERC also ruled that during these two weeks, MSEDCL will not take any coercive action including encashment of Bank Guarantee towards EMD.

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