MERC adopts Rs.6.38/kWh 10-year tariff for AEML-D's 750 MW RE-RTC procurement from Powerpulse Trading Solutions Ltd under Section 63
Petition of Adani Electricity Mumbai Limited-Distribution seeking adoption of tariff discovered through tariff-based competitive bidding for procurement of 750 MW power from grid-connected Renewable Energy Power Projects, complemented with power from any other source on a Round-the-Clock (RTC) basis, under Section 63 read with Section 86 (1) (b) of the Electricity Act, 2003 for meeting demand and the Renewable Purchase Obligation requirements. AND Interlocutory Application of Adani Electricity Mumbai Limited - Distribution for seeking urgent listing of Case No. 208 of 2025. AND Interlocutory A
AEML-D sought adoption of a Section 63 competitively-bid tariff for 750 MW RE-RTC power (RE complemented with any-other-source power) to meet rising peak demand (2056 MW to 2739 MW by FY29-30, driven by data centres, EVs, commercial load) and escalating RPO targets (29.91% to 43.33% by FY2029-30). Earlier 2022 bidding attempts for 1000-1500 MW RTC power failed due to bidder concerns over PPA tenure, availability and RE-mix conditions; MERC approved deviations (10-year PPA, STU periphery delivery, no payment security fund) in Dec 2024, enabling a fresh bid in which 4 bidders offered 1500 MW.
- Petition in Case 208 of 2025 allowed; IA 152/2025, IA 10/2026 and IA 90/2026 disposed of
- Adopted weighted-average levelized tariff of Rs.6.38/kWh for 750 MW RE-RTC supply from PTSL for 10 years under Section 63
- Held that AEML-D's competitive bidding process complied with MoP Guidelines and was transparent, with adequate participation (4 bidders, 1500 MW)
- Found tariff market-reflective, benchmarking against MSEDCL's Rs.5.90/kWh (CTU periphery, 25-yr PPA) which translates to ~Rs.6.46/kWh at Maharashtra periphery, and Assam/Bihar thermal RTC tenders (Rs.6.075-6.8/kWh)
- Took on record PTSL's confirmation of alternate non-RE source (Mahan Energen Unit#2) under PPA Article 4.11, providing supply assurance despite VIPL capacity overlap with MSEDCL
- Directed AEML-D to submit the final executed PPA with PTSL to the Commission
- AEML-D to submit final executed PPA with PTSL to MERC
- PTSL to maintain 80% annual and peak availability with minimum 51% RE supply obligation, failing which 400% compensation penalty applies
- PTSL to ensure non-RE balancing power supply via VIPL Butibori (540 MW) and/or alternate source Mahan Energen Unit#2 per PPA Article 4.11
- Supplier bears full risk of RE variability, ISTS charges, transmission losses, and cost of maintaining uninterrupted RTC supply to Maharashtra periphery
- Procurement to be factored into AEML-D's Resource Adequacy plans (ST-DRAP/MT-DRAP) and MYT power procurement from FY2027-28 onwards
- • C&I consumers in AEML-D's licence area gain firmer RE-RTC supply from FY2027-28, reducing exposure to short-term/exchange price volatility as this capacity displaces open-market purchases
- • Benchmark tariff of Rs.6.38/kWh (with supplier bearing RE variability, ISTS charges and losses) sets a useful reference point for other discoms' upcoming RE-RTC or hybrid RTC bids in Maharashtra
- • RE developers and traders bidding into RTC/complemented-power tenders should note MERC's acceptance of non-RE balancing flexibility (PPA Article 4.11 alternate source clause), which eases supply-side risk for suppliers juggling multiple discom contracts
- • Storage (BESS/PSP) developers should note MERC found their tariffs (~Rs.10.1-10.34/kWh) not comparable/benchmarkable against thermal-balanced RE-RTC tenders, reinforcing thermal-complemented RTC as the cheaper near-term reliability solution
This order reaffirms MERC's willingness to adopt Section 63 RTC tariffs benchmarked against comparable discom tenders (MSEDCL, Assam, Bihar) rather than in isolation, and validates supplier-side flexibility clauses (Article 4.11) even when overlapping commitments raise supply-assurance questions. For developers, the takeaway is that RE-RTC tenders with thermal balancing remain commercially viable near Rs.6-6.5/kWh in Maharashtra, but bidders must build in alternate-source flexibility to manage multi-discom obligations. C&I buyers should track PTSL's actual delivery performance given the VIPL/MSEDCL overlap flagged in the order.
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.