MERC adopts Rs.5.56/kWh tariff and approves 7-year PPA for BEST's 125 MW RTC power procurement from SWPGPL under Section 63
Petition of Brihanmumbai Electric Supply and Transport Undertaking seeking approval of Agreement for procurement of power and adoption of Tariff discovered through competitive bidding for procurement of 125 MW round the clock power for medium term and Interlocutory Application for urgent listing of the Case No. 135 of 2024.
BEST sought Commission approval under Section 63/86(1)(b) of the EA 2003 and MoP medium-term guidelines to procure 125 MW Round-the-Clock power for 7 years from SWPGPL, discovered via competitive e-reverse auction (DEEP portal) for an original 350 MW RTC requirement. This followed expiry/uncertainty of TPC-G and Manikaran PPAs, TPC-G's refusal to extend without Rs.900 Cr investment, cancellation of two earlier long-term tenders (200 MW and 500 MW), and BEST's need to replace costly TPC-G thermal generation (Rs.8-11/kWh) with cheaper power while managing Mumbai's transmission corridor constraints.
- Petition in Case 135 of 2024 allowed; IA No. 43 of 2024 disposed of
- Adopted tariff of Rs.5.56/kWh for 125 MW RTC power from SWPGPL under Section 63 for 7 years (FY2024-25 to FY2030-31)
- Held that transmission constraints do not apply since BEST has not reduced embedded TPC-G capacity; power can flow via Short Term Open Access if Medium Term Open Access unavailable
- Found discovered tariff reasonable and consistent with market trend, benchmarked against Haryana, KSEBL, GRIDCO DEEP portal tariffs (Rs.5.78-6.88/kWh range)
- Approved medium-term procurement as justified, citing projected savings of ~Rs.569 Crore over 7 years by backing down costlier TPC-G Unit 5/8 generation
- Directed BEST to sign PPA with SWPGPL on priority, commence scheduling immediately, and file signed PPA copy within 15 days
- BEST Undertaking to sign PPA with SWPGPL on priority basis
- Commence scheduling of 125 MW power immediately after PPA execution
- File signed PPA copy with MERC within 15 days of order (i.e., by ~5 October 2024)
- Use Short Term Open Access for power scheduling if Medium Term Open Access corridor is unavailable
- BEST's separate petition (Case No. 134 of 2024) to terminate PPA with TPC-G Unit 5 to be decided independently with STU/Discoms as parties
- STU/MSLDC to accord necessary scheduling approvals for SWPGPL power flow into Mumbai
- • Confirms MERC's continued reliance on Section 63 competitive bidding for discovering medium-term RTC tariffs, reinforcing bankability of such structures for C&I-linked distribution licensees
- • Recently commissioned 400kV Kharghar-Vikhroli line signals easing of Mumbai transmission constraints, potentially improving Open Access feasibility for external generators/developers serving Mumbai load centers
- • Benchmark tariff of Rs.5.56/kWh for RTC power (against DEEP portal range of Rs.5.78-6.88/kWh) sets a useful market reference for RE/thermal RTC developers and off-takers negotiating medium-term PPAs in Maharashtra
- • Commission's willingness to allow STOA fallback when MTOA/LTOA is constrained offers a template for storage/RE-RTC hybrid developers seeking flexible evacuation arrangements
This order reaffirms MERC's consistent stance that Section 63 tariffs discovered via transparent bidding will be adopted with limited scrutiny beyond market-comparability and prudence checks, and that transmission constraints are assessed narrowly (only where embedded PPAs are reduced). Developers bidding into distribution licensee medium-term tenders in Maharashtra should note the Rs.5.56/kWh RTC benchmark and the Commission's comfort with STOA as a fallback for evacuation, which reduces execution risk even amid grid corridor constraints. The linked TPC-G Unit 5 termination case (134/2024) is worth tracking as it will reshape Mumbai's embedded generation mix and open further replacement opportunities.
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.