Maharashtra Regulatory Commission Addresses Renewable Energy Tariff Determination For FY 2024-25

In a recent development, the Maharashtra Electricity Regulatory Commission (MERC) addressed the issue of determining the Generic Renewable Energy Tariff for the financial year 2024-25. This matter falls under the purview of the MERC (Renewable Energy Tariff) Regulations, 2019. These regulations were initially notified on December 30, 2019, with applicability starting from April 1, 2020, for the determination of tariffs for various renewable energy (RE) technologies.

Under Regulation 7.1 of these regulations, tariffs for certain types of RE projects, including wind energy, solar PV, non-fossil fuel-based co-generation, biomass-based projects, and hybrid RE power projects, are determined through a competitive bidding process. Therefore, the commission does not determine generic tariffs for these technologies but adopts tariffs discovered through competitive bidding.

However, the scope of determining generic tariffs under these regulations is limited to certain aspects. For instance, Regulation 64 specifies the notification of generic tariffs for solar rooftop PV projects. However it’s important to note that the process of tariff determination for rooftop PV projects is not outlined in the regulations; instead, tariffs are notified as per specific provisions.

The commission also addresses the determination of variable charges for biomass and non-fossil fuel-based co-generation projects. These charges apply only to existing projects with Energy Procurement Agreements (EPAs) signed based on previously determined generic tariffs. For projects covered under competitive bidding or EPAs linked to competitively discovered tariffs, these variable charges do not apply.

To address the issue at hand, the commission issued a Suo-motu Order, notifying the generic tariff rates for rooftop PV projects for FY 2024-25. This order also initiates the process of determining variable charges for biomass and non-fossil fuel-based co-generation projects for the same period.

To gather public feedback, the commission invited comments on its draft RE Tariff Order through a public notice published in various newspapers. Following this, an e-public hearing was held where stakeholders submitted their comments and suggestions. After considering the responses received, the commission proceeded with the determination of generic tariff rates and variable charges based on financial principles and technology-specific parameters. During the process, the commission received suggestions and objections, with MSEDCL, who suggested considering the latest tariff adopted for similar projects.

In response, the commission noted that considering the latest tariff adopted for similar projects is feasible, it decided to notify a generic tariff of ₹2.90/kWh for procurement of surplus power from rooftop PV projects. Regarding the suggestion for grossing up the tariff, the commission explained that such a practice is not applicable in the case of rooftop PV systems under net metering arrangements. The commission’s decision ensures clarity and consistency in determining renewable energy tariffs, aligning with the regulatory framework, and addressing stakeholders’ concerns effectively.

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