MERC Approves 780 MW Wind-Solar Hybrid Power Procurement By MSEDCL From NTPC In Maharashtra

The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of 780 MW of wind-solar hybrid power by the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) from NTPC Ltd. This decision was formalized in an order dated 10 September 2025, following MSEDCL’s petition filed on 24 July 2024 to adopt a tariff for long-term power purchase. Initially, MSEDCL sought to procure 480 MW, but later, on 22 November 2024, it requested an additional 300 MW, bringing the total capacity to 780 MW.

The discovered tariff for this renewable energy is in the range of Rs. 3.42 to Rs. 3.43 per kWh, which includes a trading margin of 7 paise per kWh. The petition was considered by a Coram consisting of Chairperson Sanjay Kumar and Members Anand M. Limaye and Surendra J. Biyani. MSEDCL was represented by its advocate, Ms. Deepa Chawan. The commission evaluated the petition by examining key factors, including the quantum of power procurement, the competitiveness of the proposed tariff, the trading margin, and the availability of the interstate transmission corridor.

MSEDCL justified the procurement by highlighting the need to meet future power demand and to comply with its Renewable Purchase Obligation (RPO) targets. The commission noted that the proposed 780 MW of wind-solar hybrid power had already been considered in the Central Electricity Authority’s (CEA) Resource Adequacy Study, which supported the justification for the quantum of power. The commission also reviewed MSEDCL’s cumulative RPO shortfall up to FY 2023-24, which stands at 37,154 MU, emphasizing the importance of this renewable energy procurement in fulfilling regulatory obligations.

The commission found the proposed tariff to be competitive and reasonable when compared to tariffs discovered in recent similar tenders. After accounting for transmission losses and the trading margin, the landed cost of the power to MSEDCL is estimated at around ₹3.52 per kWh, which is lower than the ₹3.60 per kWh tariff approved in an earlier case for MSEDCL’s solar-wind hybrid tenders. The 7 paise per kWh trading margin was also deemed acceptable as it aligns with the Competitive Bidding Guidelines, 2023.

Regarding transmission, MERC emphasized that MSEDCL is responsible for obtaining the necessary clearances and ensuring grid access. The order directs MSEDCL to coordinate closely with the State Transmission Utility (STU) to implement transmission capacity schemes in a timely manner to prevent potential delays or bottlenecks in power evacuation.

The approved procurement will be sourced from three developers: Sprng Vayu Vidyut Private Limited, Juniper Green Beta Pvt. Ltd., and ACME Renewtech Private Limited. The commission noted that this initiative would help MSEDCL meet its RPO targets over the next 25 years. By securing long-term contracts for wind-solar hybrid power, MSEDCL aims to strengthen its renewable energy portfolio while ensuring a reliable power supply for Maharashtra.

This move marks a significant step in Maharashtra’s renewable energy expansion, reflecting the state’s commitment to sustainable energy development. The approval of 780 MW of wind-solar hybrid power demonstrates a proactive approach to addressing both future energy demand and regulatory RPO requirements while maintaining competitive tariffs and robust grid planning.