MERC adopts Section 63 tariffs for 275 MW (not full 500 MW) medium-term RTC power for AEML-D, FY25-27
Case of Adani Electricity Mumbai Limited- Distribution Business seeking adoption of Tariff for procurement of 500 MW Round the Clock (RTC) power on Medium-term basis for the period starting from 01 April 2025 to 31 May 2027 and Interlocutory Application for urgent hearing in IA No. 40 of 2025.
AEML-D sought MERC's adoption, under Section 63 and MoP's 2019 Bidding Guidelines, of tariffs discovered via DEEP portal competitive bidding for 500 MW Round-the-Clock medium-term power (1 Apr 2025-31 May 2027), needed to bridge a ~617 MW shortfall until AEML-D's long-term RE+RTC/wind/solar contracts materialize (24-30 month lead time). Six bidders qualified; after e-reverse auction and negotiation, only three agreed to supply a reduced 275 MW at revised rates, with AEML-D reserving right to approach again if others revise offers.
- Petition in Case 53 of 2025 allowed; IA 40 of 2025 (urgent hearing) disposed of
- Adopted tariff under Section 63 for 275 MW medium-term RTC power (against 500 MW sought) for 1 April 2025 to 31 May 2027
- Approved PPA/tariff of Rs 5.36/kWh for 100 MW from Jindal Power Ltd (Shirpur TPP)
- Approved PPA/tariff of Rs 5.47/kWh for 125 MW from Dhariwal Infrastructure Ltd
- Approved PPA/tariff of Rs 5.47/kWh for 50 MW from Tata Power Trading Company Ltd, all at Maharashtra State periphery
- Directed AEML-D to submit copies of final executed PPAs to the Commission for record
- AEML-D to execute/finalize PPAs (APP) with DIL and TPTCL (JPL's APP already signed 18 Mar 2025) and submit final copies to MERC
- Supply from JPL (100 MW) to commence from 01 April 2025 pending tariff adoption, now cleared
- DIL and TPTCL supplies to commence once APP execution formalities are completed
- AEML-D permitted to approach Commission again for adoption if other original bidders (SWPGPL, APL Raigarh, APL Raipur) revise tariffs or offer additional quantum
- Residual shortfall (225 MW of the original 500 MW ask) to continue being met via short-term market/bilateral/banking until further tie-ups
- AEML-D to continue pursuing long-term RE+RTC (1500 MW), wind and solar tie-ups already in progress to replace medium-term dependence over time
- • C&I/open-access consumers in AEML-D area benefit from RTC power procured below comparable Mumbai (BEST) and pan-India DEEP portal benchmarks, moderating power purchase cost pass-through
- • Only 275 of 500 MW sought was tied up, meaning AEML-D remains materially exposed to short-term/exchange power for balance requirement — a risk factor for tariff volatility affecting C&I open-access economics
- • Precedent reinforces MERC's consistent Section 63 adoption practice for competitively bid RTC power, useful reference for other Maharashtra discoms/developers structuring medium-term RTC bids
- • RTC thermal-based medium-term contracts (not RE) fill near-term gap; large long-term RE+RTC (1500 MW) and wind/solar tenders remain the bigger opportunity pipeline for RE developers to track
MERC's readiness to adopt Section 63 tariffs quickly (LOA to order in ~5 months) despite AEML-D falling short of its 500 MW target signals continued tight medium-term RTC supply and firming prices (5.36-5.47 vs BEST's 5.56 last year). Developers with flexible RTC/thermal capacity in Maharashtra/neighboring states can expect discoms to keep tapping DEEP-portal bids as bridge arrangements until long-term RE+RTC PPAs mature; C&I buyers should watch AEML-D's residual 225 MW short-term exposure as a cost pass-through risk.
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.