MERC Approves ₹5.90/kWh Tariff For MSEDCL’s 2,500 MW Round-The-Clock Green Power Procurement In Maharashtra

The Maharashtra Electricity Regulatory Commission (MERC) has approved a tariff of Rs. 5.90 per unit (kWh) for the long-term procurement of 2,500 MW of Round-the-Clock (RTC) power by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). The approval marks a major step toward strengthening Maharashtra’s clean energy supply while supporting the growing demand for reliable green power across the state.

The decision was issued by a Commission bench comprising Chairperson Valsa Nair Singh and Members Anand M. Limaye and Surendra J. Biyani. The approval came after MSEDCL filed a petition on May 13, 2026, seeking adoption of the tariff discovered through a competitive bidding process conducted under Section 63 of the Electricity Act, 2003.

MSEDCL launched the tender on January 2, 2026, to secure round-the-clock power for a period of 25 years. The procurement aims to improve resource adequacy, effectively utilize surplus solar power available with the utility, and meet increasing demand for traceable green energy from sectors such as data centers and semiconductor manufacturing.

The tender introduced a unique supply-based RTC power model, which differs from conventional availability-based contracts. Under this arrangement, payments are linked to the actual energy supplied, reducing procurement risks for the utility. The contract also includes strict performance requirements. Suppliers must maintain a minimum monthly Capacity Utilization Factor (CUF) of 70%, an annual CUF of 80%, and a 90% CUF during peak demand hours. In addition, at least 51% of the supplied energy must be traceable green power on an hourly basis each year.

The bidding process received strong market participation. Four companies—Adani Power Limited, Lalitpur Power Generation Company, MB Power, and Sterlite Grid 42—qualified in the technical evaluation stage. Together, they offered a combined capacity of 6,250 MW against the required 2,500 MW.

Financial bids were opened on March 5, 2026. Adani Power Limited emerged as the lowest bidder with an initial tariff quote of Rs. 6.30 per unit. Following an electronic reverse auction conducted on March 17, 2026, the tariff was further reduced to Rs. 5.90 per unit, with Adani Power retaining its position as the lowest bidder.

After reviewing the bid results, MERC found the discovered tariff to be competitive and reasonable. The Commission noted that comparable long-term thermal power projects in India have tariffs ranging from Rs. 6.31 to Rs. 8.90 per unit. It concluded that the approved tariff is market-based, protects consumer interests, and will help MSEDCL meet its Renewable Purchase Obligations (RPOs). MSEDCL has now been directed to submit the signed Power Purchase Agreement with Adani Power Limited to the Commission.