MSEDCL Awards 3,251 MW Hybrid Power Projects With Tariffs As Low As ₹3.60/kWh

The Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) initiated tenders to procure wind-solar hybrid power through a competitive bidding process. This was done to meet the growing power demand and ensure compliance with Renewable Purchase Obligations (RPO). Two key petitions were filed by MSEDCL, seeking approval for tariffs for 1,601 MW and 1,000 MW of wind-solar hybrid power, discovered through e-reverse auctions.

The bidding process began in March 2024, with MSEDCL floating tenders for the procurement of 2,000 MW of wind-solar hybrid power, including an option to increase capacity by another 2,000 MW under a Greenshoe option. Several companies, including JSW Neo Energy, Avaada Energy, and BN Peak Power, participated in the bidding. After technical and financial evaluations, a competitive tariff ranging from ₹3.60 to ₹3.62 per kWh was discovered.

MSEDCL accepted bids from four companies for a total of 1,601 MW, with JSW Neo Energy and Avaada Energy offering additional capacity under the Greenshoe option. Similarly, a second round of tenders was initiated in July 2024 for the procurement of 1,650 MW of wind-solar hybrid power, again with the option to increase capacity. The final round of bidding resulted in 1,000 MW being awarded at a tariff of ₹3.60 per kWh, with Tata Power Renewable Energy and Avaada Energy matching the lowest tariff rate.

These tariffs were deemed reflective of current market conditions, with MSEDCL citing comparisons with other recent wind-solar hybrid power tenders conducted by entities like the Solar Energy Corporation of India (SECI). The final tariffs were found to be competitive and in line with industry standards.

In total, MSEDCL secured 3,251 MW of wind-solar hybrid power at tariffs between ₹3.60 and ₹3.62 per kWh. This power will contribute to MSEDCL’s efforts to meet its RPO targets, which are essential for fulfilling renewable energy commitments. The Commission approved the tariffs and instructed MSEDCL to execute the necessary power purchase agreements within 30 days.

The successful procurement of this hybrid power will help Maharashtra reduce its reliance on traditional energy sources while moving towards a cleaner energy mix. The competitive tariffs will also provide cost-effective power to the state, benefiting both the distribution company and consumers in the long run.