MERC Sanctions Tariff of ₹3.10/kWh for 117.5 MW Solar Power Procurement, Fulfilling MSEDCL’s Solar RPO Requirements

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The Maharashtra Electricity Regulatory Commission (MERC) has granted approval for a tariff of ₹3.10/kWh for the procurement of 117.5 MW of solar power on a long-term basis. The commission’s decision mandates the signing of a power purchase agreement (PPA) within 30 days by the concerned parties. This power will contribute towards meeting the solar renewable purchase obligation (RPO) targets of the Maharashtra State Electricity Distribution Company (MSEDCL).


Earlier, MSEDCL had filed a petition seeking tariff approval for the procurement of 117.5 MW of solar power under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

After a series of negotiations and revisions, the bidders proposed revised tariffs ranging from ₹3.15/kWh to ₹3.92/kWh. Following deliberations, MERC approved the tariff of ₹3.10/kWh.


MERC also highlighted that the projects under the PM-KUSUM program closely resemble those under the Mukhyamantri Saur Krishi Vahini Yojana, for which a tariff of ₹3.30/kWh had been adopted by the commission.

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To optimize power purchase costs, MSEDCL was instructed to prioritize the PM-KUSUM program and ensure the implementation of monitoring systems alongside the projects. The commission recommended the adoption of an operational expenditure (OPEX) model for metering, with MSEDCL directed to conduct a cost-benefit analysis.

This decision by MERC marks a significant step towards enhancing solar power generation and meeting renewable energy targets in Maharashtra.

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