The Maharashtra Electricity Regulatory Commission (MERC) has drafted the MERC (Distribution Open Access) Regulations, 2026, proposing an updated framework for open access and grid connectivity across distribution licensees in Maharashtra. The draft regulations set out eligibility conditions, connectivity requirements, application procedures, charges, energy banking provisions and scheduling mechanisms for open access consumers and renewable energy projects.
Under the proposed framework, Renewable Energy Generating Stations (REGS) and Energy Storage Systems (ESS) with capacities between 1 MW and 5 MW will be eligible for direct connectivity to distribution networks. Projects of 5 MW and above will remain subject to technical feasibility assessments. The draft also introduces additional storage requirements for new connectivity applications involving variable renewable energy sources such as solar and wind.
Applicants for new connectivity will be required to integrate ESS capacity equivalent to 50% of the applied connectivity capacity with a two-hour discharge duration, or 25% with a four-hour duration. A minimum usable ESS capacity of 1 MWh per MW of sanctioned connectivity will apply through 2030, increasing to 2 MWh per MW thereafter. Hydro-pumped storage projects will be exempt from these mandatory storage integration requirements.
For green energy open access, consumers will need a contracted demand or sanctioned load of at least 100 kW. This requirement can be met through a single connection or by aggregating multiple connections within the same electricity circle. Captive green energy consumers will not face an upper load limit. For open access involving non-renewable energy, the minimum contracted demand will be 1 MVA.
The draft classifies open access into Long-Term Open Access (LTOA) and Short-Term Open Access (STOA). LTOA will cover periods exceeding 11 months and extending up to 25 years, while STOA will apply for periods from one day to 11 months. STOA applications are proposed to be processed entirely through the State Open Access Registry (SOAR), an online platform developed by the Maharashtra State Load Despatch Centre (MSLDC). The platform is intended to provide automated tracking, time-stamping and integrated payment facilities.
The proposed application fee is ₹2 lakh for standard applicants and ₹1 lakh for renewable energy generators and ESS facilities. Where network augmentation is required, applicants will also need to provide bank guarantees of ₹10,000 per MW for general transactions and ₹5,000 per MW for renewable energy projects. LTOA decisions are to be communicated within 120 days where no network augmentation is required and within 180 days where network expansion is necessary.
Open access transactions will continue to attract applicable wheeling charges, cross-subsidy surcharges, additional surcharges and MSLDC fees as determined through MERC tariff orders. However, dedicated ESS facilities used solely for intermediate storage and green energy used for producing green hydrogen or green ammonia will receive exemptions from cross-subsidy and additional surcharges.
The draft also proposes structured banking provisions for non-firm renewable energy, with daily banking divided into four to 24 time slots depending on contracted capacity. Banking will involve fixed monthly charges and variable charges based on banked energy. For consumers with contracted renewable capacity above 5 MW, energy credited against licensee consumption within a slot will be capped at 10%. Such entities will also move to a 15-minute scheduling framework within three years of the regulations’ notification.
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