Maharashtra Regulator Clears 250 MW Firm And Dispatchable Renewable Power Procurement With Storage

In a significant step to strengthen its long-term power supply portfolio, Tata Power Company Limited – Distribution (TPC-D) has received regulatory approval to procure 250 MW of clean and reliable power. The Maharashtra Electricity Regulatory Commission (MERC), through an order dated January 1, 2026, approved TPC-D’s proposal to procure “Firm and Dispatchable” renewable energy along with energy storage systems for a period of 25 years. This approval is expected to support the utility in meeting its future demand while ensuring cost efficiency and grid reliability.

The move follows a direction issued by MERC in March 2025, wherein the Commission acknowledged that firm and schedulable renewable power could help distribution utilities better align generation with their load requirements. Such power, backed by energy storage, was also seen as a way to optimize overall power purchase costs. Acting on this guidance, TPC-D initiated a competitive bidding process in April 2025 to source the required capacity, which attracted participation from several prominent renewable energy developers.

The bidding process involved multiple stages, including detailed technical evaluations and a competitive electronic reverse auction conducted in August 2025. After completion of the process, four companies emerged as successful bidders. Juniper Green Energy Limited was awarded 70 MW, Navayuga Engineering Company Limited secured 50 MW, ACME Solar Holdings Limited was allotted 50 MW, and Tata Power Renewable Energy Limited received the highest allocation of 80 MW.

The tariffs discovered through the bidding were in a narrow and competitive range of Rs. 4.76 to Rs. 4.77 per unit. MERC observed that these tariffs were in line with prevailing market trends across India for similar firm and dispatchable renewable energy projects, where prices have ranged between Rs. 4.25 and Rs. 4.98 per unit. The Commission noted that the discovered rates were reasonable and reflective of market conditions.

During the bidding process, a key development related to solar equipment norms emerged. The Ministry of New and Renewable Energy issued revised guidelines concerning the Approved List of Models and Manufacturers for solar cells. In response, TPC-D asked bidders to revise their price offers, considering the updated guidelines. This step resulted in a reduction in the final quoted tariffs, benefiting the overall procurement process.

There was also a dispute related to the project location. Navayuga Engineering sought permission to shift its project from Andhra Pradesh to Maharashtra. Since the original bid was based on an out-of-state project, its tariff had been adjusted to Rs. 4.43 per unit after accounting for interstate transmission charges and losses. The company requested restoration of the higher tariff of Rs. 4.76 per unit for the new in-state location. However, TPC-D rejected the request, stating that the bidding conditions did not allow any upward revision in tariff after a change in project location.

After reviewing all aspects, MERC approved the procurement, emphasizing the transparent and competitive nature of the bidding process. The Commission stated that the approved contracts would help ensure a stable supply of renewable energy in Maharashtra and assist TPC-D in meeting its Renewable Purchase Obligations. TPC-D has been directed to execute the power purchase agreements with the selected developers within 30 days of the order.