MERC Approves MSEDCL’s Combined Bidding For 1,600 MW Thermal And 5,000 MW Solar Power

The Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) recently filed a petition with the Maharashtra Electricity Regulatory Commission (MERC), seeking directions and clarification regarding an earlier order. This petition, submitted on July 19, 2024, requested the Commission’s approval to proceed with a combined bidding process for the procurement of 1,600 MW of thermal power and 5,000 MW of solar power.

MSEDCL had previously planned to procure power through a combined bidding process that included both thermal and solar power. However, the Commission observed some deviations from the competitive bidding guidelines in the initial petition. Specifically, MSEDCL had proposed a minimum capacity of 2,500 MW for solar power bids, whereas the guidelines stipulated a minimum offer capacity of 50 MW.

To address this issue, MSEDCL issued an addendum to the bid documents on June 30, 2024, ensuring compliance with the guidelines. The addendum allowed a single bidder to bid for a capacity of up to 2,500 MW, aligning with the guidelines’ requirement of a minimum capacity of 50 MW per bid. MSEDCL clarified that the only deviation was the combination of thermal and solar bids, which the Commission had already approved in an earlier order.

During the e-hearing held on July 23, 2024, MSEDCL’s advocate highlighted that, with the addendum, there were no deviations from the competitive bidding guidelines for solar power procurement. The Commission acknowledged this and noted that MSEDCL had followed the guidelines for solar power procurement. As a result, the Commission allowed MSEDCL to proceed with the competitive bidding process for solar power.

In its analysis, the Commission reiterated that it had approved the combined thermal and solar power procurement in its order dated July 12, 2024. The Commission had provided detailed approval for the scheme and the associated deviations for thermal power procurement. However, it directed MSEDCL to seek approval from the appropriate government authority for any deviations related to solar power procurement.

MSEDCL emphasized that, following the issuance of the addendum, there were no deviations from the competitive bidding guidelines for solar power procurement. The Commission concurred, allowing MSEDCL to move forward with the competitive bidding process as per the guidelines.

The Commission concluded by allowing the petition and granting MSEDCL permission to proceed with the competitive bidding process. This decision enables MSEDCL to advance its plans for the procurement of 1,600 MW of thermal power and 5,000 MW of solar power, contributing to the state’s energy needs and supporting renewable energy initiatives.