MERC Approves INR 6.38/kWh Tariff For Adani Electricity Mumbai Limited-Distribution 750 MW RTC Power Procurement

The Maharashtra Electricity Regulatory Commission (MERC) has approved the adoption of a weighted average levelized tariff of Rs 6.38 per kWh for the procurement of 750 MW of Round-the-Clock (RTC) power by Adani Electricity Mumbai Limited-Distribution (AEML-D). The approval, granted under Section 63 of the Electricity Act, 2003, allows AEML-D to sign a 10-year Power Purchase Agreement (PPA) with Powerpulse Trading Solutions Limited (PTSL), the successful bidder selected through a competitive bidding process.

The Commission issued the approval while disposing of Case No. 208 of 2025 along with three related Interlocutory Applications. AEML-D had approached MERC seeking tariff adoption for the power procurement to meet Mumbai’s growing electricity demand and to achieve its Renewable Purchase Obligation (RPO) targets. The utility estimates that the city’s peak electricity demand will increase to around 2,739 MW by FY 2029-30, while its RPO requirement is expected to rise to 43.33 percent during the same period.

Under the approved procurement model, at least 51 percent of the contracted power will come from renewable energy sources, including solar and wind. The remaining requirement will be met through conventional thermal power to ensure uninterrupted 24×7 electricity supply with a minimum annual and peak-month availability of 80 percent. PTSL will be responsible for managing renewable energy variability, along with interstate transmission system (ISTS) charges and transmission losses, and will supply power at the Maharashtra grid boundary.

AEML-D had initially launched the bidding process on December 29, 2022. However, after receiving limited market response, the company revised the bidding documents in January 2025 following Commission-approved deviations to improve participation. Four bidders—MB Power, Powerpulse Trading Solutions Limited, Goldi Solar, and JSW Neo Energy—qualified technically and collectively offered 1,500 MW of capacity.

During the e-reverse auction conducted on April 22, 2025, PTSL emerged as the lowest bidder by reducing its tariff from Rs 6.48 per kWh to Rs 6.38 per kWh. Following the successful bidding process, AEML-D issued a Letter of Award to the company on August 12, 2025.

While reviewing the petition, MERC examined whether the competitive bidding process complied with central government guidelines and whether the discovered tariff reflected prevailing market conditions. AEML-D compared the tariff with recent baseload thermal power tenders in Assam, where tariffs ranged between Rs 6.30 and Rs 6.80 per kWh, and Bihar, where tariffs ranged from Rs 6.075 to Rs 6.205 per kWh.

The Commission also compared the procurement with a separate RTC tender awarded by Maharashtra State Electricity Distribution Company Limited (MSEDCL), which discovered a tariff of Rs 5.90 per kWh at the Central Transmission Utility (CTU) point. After adding estimated transmission charges and losses of Rs 0.56 per kWh, MERC noted that the effective cost at the Maharashtra periphery would be around Rs 6.46 per kWh. Since PTSL’s quoted tariff of Rs 6.38 per kWh already includes transmission charges and losses, the Commission concluded that the tariff was competitive and represented a prudent procurement.

MERC also noted PTSL’s commitment to arrange balancing power from alternate eligible sources, including Mahan Energen Ltd Unit #2 if required, without imposing additional financial burden on AEML-D. The order was passed by Chairperson Valsa Nair Singh and Members Anand M. Limaye and Surendra J. Biyani. The Commission has directed AEML-D to submit the final executed copy of the Power Purchase Agreement for its records.