Maharashtra Approves 250 MW Dispatchable Renewable Energy Projects With Storage

Tata Power Company Limited – Distribution (TPC-D) has taken a major step toward strengthening its long-term energy supply after receiving approval from the Maharashtra Electricity Regulatory Commission (MERC) to adopt a competitive tariff for 250 MW of power. This power will be sourced from “Firm and Dispatchable” Renewable Energy (FDRE) projects, which are paired with energy storage systems to ensure a more reliable and stable flow of electricity compared to conventional solar or wind power. The approval covers a 25-year procurement plan finalized through a transparent e-bidding and reverse auction process completed in late 2025.

Four leading energy companies were selected to supply the power under this plan. Juniper Green Energy Limited will provide 70 MW, Navayuga Engineering Company Limited 50 MW, ACME Solar Holdings Limited 50 MW, and Tata Power Renewable Energy Limited 80 MW. The final discovered tariffs for these projects range from ₹4.76 to ₹4.77 per unit, reflecting competitive pricing for dispatchable renewable energy in line with national market trends.

During the bidding process, TPC-D and the developers faced a key technical challenge related to a policy change regarding solar PV cells. Initially, the Ministry of New and Renewable Energy (MNRE) required developers to source modules from specific domestic manufacturers. However, a subsequent amendment relaxed these rules, allowing bidders to revise their price offers downward before the final auction. TPC-D ensured that these cost savings were passed on to the company, preventing developers from later claiming higher tariffs under “Change in Law” provisions.

Another point of discussion during the hearing involved a dispute with Navayuga Engineering regarding the project location. The company requested to move its project from Andhra Pradesh to Maharashtra and sought a higher tariff by removing the 33-paise deduction normally applied to interstate projects to cover transmission costs. TPC-D opposed this, emphasizing that the bidding rules do not allow any increase in tariffs, even if the project is relocated closer to the delivery point. MERC noted that its role was limited to approving the overall bidding results and asked both parties to resolve this issue amicably.

With this approval, TPC-D aims to meet its Renewable Purchase Obligations while optimizing power costs through better load matching starting in the 2027-28 financial year. The company is now required to sign formal Power Purchase Agreements with the selected developers within 30 days. By securing this 250 MW capacity from FDRE projects with integrated storage, TPC-D is positioning itself to provide more dependable and cost-effective renewable energy to its consumers, while also setting an example of transparent procurement and policy compliance in the evolving energy sector. This initiative reflects the growing importance of dispatchable renewable energy in India’s efforts to balance sustainability with grid reliability and economic efficiency.

This step is expected to strengthen Maharashtra’s energy infrastructure and contribute to a cleaner, more reliable power supply for both households and industries across the state.