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In a recent order Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has received approval from the Maharashtra Electricity Regulatory Commission (MERC) for the adoption of tariff for long-term power procurement from 14MW solar projects under the PM-KUSUM Component-A program. Ministry of Natural And Renewable Energy (MNRE) approved 500MW of solar project capacity for Maharashtra under Component-A of PM-KUSUM program. Under Component-A of PM-KUSUM program, from 0.5-2 MW capacity of projects to be connected to the distribution grid.
MSEDCL’s Prayer
MSEDCL received 500MW of capacity under component-A from MNRE on 2021. MSEDCL released a tender for the long-term purchase of 500MW of solar electricity with a ceiling tariff of Rs.3.10/ kwh under PM-KUSUM component-A program in accordance with MNRE rules and standard PPA contracts. After repeated tendering process, only 12 qualified bidders bided for 13MW of capacity.
The details given below.
| Sl No | Tender No | Name Of Bidder | Capacity Per Location (MW) | Quoted Tariff (Rs/Kwh) |
| 1 | T-45 (445MW) | Ashutosh Valmik Rajput | 1 | 3.09 |
| 2 | T-45 (445MW) | Laxmikant Narayanrao Loharekar | 2 | 3.05 |
| 3 | T-45 (445MW) | Majid Rafik Shaikh | 0.5 | 3.10 |
| 4 | T-45 (445MW) | Manda Maruti sanap | 1 | 3.10 |
| 5 | T-45 (445MW) | Pandurang Shankar Gajare | 1 | 3.09 |
| 6 | T-45 (445MW) | Prasen Hemantrao Vinchurkar | 1 | 3.10 |
| 7 | T-45 (445MW) | Rahul Pritamsingh Upwanshi | 1 | 3.10 |
| 8 | T-45 (445MW) | Rajesh Uttamrao Vitekar | 2 | 3.10 |
| 9 | T-45 (445MW) | Ramhari Vyankatrao Mantri | 2 | 3.09 |
| 10 | T-45 (445MW) | Sadashiv Vyankatrao Mantri | 0.5 | 3.09 |
| 11 | T-45 (445MW) | V.D Electricals | 1 | 3.10 |
| 12 | T-45 (445MW) | Varad Electricals & Engineering | 1 | 3.10 |
In view of the above context, MSEDCL asked MERC to accord approval for adoption of tariff as mentioned in above table and signing of PPA with successful bidder for 14MW solar power as discovered through Competitive bidding conducted by MSEDCL. Also, to accord approval to made this procured solar power eligible for meeting the Solar RPO requirement of MSEDCL.
Commission’s Analysis & Order
As per MSEDCL’s submission, commission analyzed that under PM-KUSUM Component-A scheme, MSEDCL will get procurement-based incentive (Rs. 0.40 P.U. or Rs. 6.6 lakh per MW of installed capacity, whichever is less) from MNRE for first 5 years from the commissioning date (CoD) of the project. Thus,the current bidding process reflects market trends and the tariff found in the present bidding process will reflect that. However, the procurement-based incentive will have a further impact on reducing power purchase costs. Subsequently, the commission accords its approval for procurement of 14 MW on long term basis from solar generator as mentioned in the above table. Parties shall sign the PPA based on documents published during bidding process. This signing shall be completed within 30 days from issuance of this Order. MSEDCL shall submit a copy of the PPA to the Commission within 15 days of entering into it.
The Solar Power procured from these projects shall be eligible towards fulfilment of MSEDCL’s Solar RPO for the respective periods.
 has received approval from the Maharashtra Electricity Regulatory Commission (MERC) for the adoption of tariff for long-term power procurement from 14MW solar projects under the PM-KUSUM Component-A program. Ministry of Natural And Renewable Energy (MNRE) approved 500MW of solar project capacity for Maharashtra under Component-A of PM-KUSUM program.){kind=link}