Maharashtra’s Generic Renewable Energy Tariff Insights for 2024-25 and Beyond

The Maharashtra Electricity Regulatory Commission (MERC) has been actively involved in determining tariffs for renewable energy projects in the state. Recently, the Commission issued guidelines regarding the Generic Renewable Energy Tariff for the fiscal year 2024-25 under the MERC (Renewable Energy Tariff) Regulations, 2019.

These regulations, established in December 2019, set the framework for determining tariffs for various renewable energy technologies such as wind energy, solar PV, biomass, and hybrid projects. According to Regulation 7.1, tariffs for these projects must be determined through a transparent competitive bidding process, as guided by the Central Government.

For certain projects like Solar Roof-top PV and Biomass-based projects, the Commission is responsible for setting generic tariffs or determining variable charges. In the case of Solar Roof-top PV, the Commission has specified that tariffs will be notified according to the approach outlined in Regulation 7.3.

However, it’s noted that there hasn’t been a competitive bidding process for Rooftop PV projects among Distribution Licensees in Maharashtra. Hence, the Commission has decided to adopt the latest tariff discovered for grid-scale solar projects as the Generic Tariff for procuring surplus energy from Rooftop PV projects. The rate has been set at ₹3.30/kWh for FY 2024-25.

Regarding Biomass and Non-fossil fuel-based Co-generation Projects, the Commission determined variable charges based on a study conducted by The Energy and Resource Institute (TERI). The study assessed Biomass and Bagasse fuel availability and prices in Maharashtra. The Commission has followed a formula stipulated in the regulations to compute variable charges for these projects, with a 5% escalation factor per annum.

Stakeholder engagement is crucial in this process. The Commission has invited objections, comments, and suggestions on the draft order from various parties, including RE developers, Distribution Licensees, Maharashtra Energy Development Agency (MEDA), and consumers. The final order will be issued after considering all submissions.

It’s important to note that the Commission aims to ensure transparency and fairness in tariff determination, aligning with the state’s renewable energy goals. The regulations provide a framework for promoting renewable energy adoption while addressing concerns related to pricing and procurement. The Maharashtra Electricity Regulatory Commission continues its efforts to facilitate the growth of renewable energy in the state through well-defined tariff mechanisms and stakeholder engagement processes.

Please view the document below for more details.