MERC approves Rs 2,19,001/MW/month tariff for MSEDCL's 750 MW/1500 MWh standalone BESS procurement via competitive bidding, for 12 years
Petition of Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for seeking adoption of tariff for procurement of storage capacity from 250 MW/ 500 MWh with additional Green Shoe capacity upto 500 MW/1000 MWh standalone Battery Energy Storage System under competitive bidding process to be installed in MSEDCL sub-stations through competitive bidding under Section 63 of the Electricity Act, 2003 for meeting Renewable Purchase Obligations. And Interlocutory Application of MSEDCL for seeking urgent hearing in Case No. 173 of 2024.
MSEDCL sought Commission adoption under Section 63 of Electricity Act 2003 of tariff discovered via competitive e-bidding for 250 MW/500 MWh base standalone BESS plus Green Shoe option up to 500 MW/1000 MWh, to be installed at 25 MSEDCL substations, to integrate excess solar from MSKVY 2.0, reduce peak power purchase cost, and meet Energy Storage Obligation under RPO Regulations.
- Approved MSEDCL's procurement of 250 MW/500 MWh base capacity plus 500 MW/1000 MWh Green Shoe capacity (total 750 MW/1500 MWh) BESS
- Adopted tariff of Rs 2,19,001 per MW per month, discovered by L1 bidder Pace Digitek Pvt Ltd, for a 12-year contract period
- Held that MSEDCL followed a fair, transparent competitive bidding process under Section 63
- Ruled discovered tariff is reflective of current market trends, being lowest among recent BESS tenders (SECI, GUVNL) and benefiting from VGF and no inter-state transmission charges
- Directed that power procured be eligible for meeting MSEDCL's Energy Storage Obligation under RPO Regulations
- IA No. 85 of 2024 for urgent hearing disposed of along with the main petition
- BESPA to be executed with successful bidders within 30 days from date of order (i.e., by ~19 April 2025)
- Copy of executed BESPA to be submitted to the Commission for records
- Projects to achieve minimum 85% annual system availability as per RfS terms
- BESS commissioning expected in FY 2026-27, aligning with MSKVY 2.0 solar rollout by September 2025
- Energy stored/discharged to be tracked for Energy Storage Obligation compliance (85% RE-sourced charging requirement)
- MSEDCL to integrate this capacity into its MYT petition (already factored per submission)
- • C&I open-access and RE developers should note MSEDCL's benchmark BESS tariff (Rs 2,19,001/MW/month) is now the lowest discovered rate in India, useful as a reference for future storage tenders/PPAs
- • BESS paired with decentralized solar (MSKVY 2.0) at substation level signals growing distribution-level storage integration relevant for C&I captive/group captive RE-plus-storage models
- • Storage capacity procured counts toward Energy Storage Obligation, relevant for C&I consumers and obligated entities tracking RPO/ESO compliance pathways
- • Reduced peak power purchase cost (~Rs1.07/unit saving) may moderate future peak tariff pressure on C&I consumers on MSEDCL network
This order sets a new pan-India benchmark for standalone BESS tariffs (Rs 2.19 lakh/MW/month), meaningfully lower than SECI/GUVNL discoveries, aided by VGF and zero inter-state transmission charges. For developers, it signals aggressive price competition in state-level BESS tenders; for C&I buyers, it validates solar-plus-storage economics at distribution level and offers a reference point for negotiating storage-backed RE or hybrid PPAs in Maharashtra.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.