MERC approved MSEDCL's procurement of 1468 MW Firm & Dispatchable RE (FDRE) power from SJVN at CERC-adopted tariff of Rs.4.38-4.39/kWh plus 7 paise trading margin, for 25 years
Application praying for urgent listing of Petition in Case No. 82 of 2024. And MSEDCL seeking approval to long term procurement of 1468 MW Firm and Dispatchable Renewable Energy Power from grid connected Renewable Energy power projects with energy storage systems selected by SJVN Limited.
MSEDCL sought MERC approval under Section 63 of the Electricity Act, 2003 to adopt tariff and approve PSA/PPA for 1468 MW FDRE power from RE projects (solar+wind+storage) selected by SJVN via e-reverse auction, to meet Solar RPO shortfall (6732 MUs cumulative), future Resource Adequacy needs, and replace costly peak-hour power (morning/evening shortfalls of 1000-1200 MW costing Rs.6-10/kWh on exchanges).
- Approved MSEDCL's procurement of 1468 MW FDRE power from SJVN at tariff of Rs.4.38-4.39/kWh (CERC-adopted) plus 7 paise/kWh trading margin, for 25-year PSA tenure
- Approved the Power Supply Agreement (PSA) executed between MSEDCL and SJVN dated 13 March 2024
- Directed that power procured shall count towards MSEDCL's RPO compliance
- Held tariff adoption is CERC's jurisdiction (inter-state project); State Commission's role limited to approving whether MSEDCL should enter into the PPA/PSA at CERC-adopted tariff
- Upheld 7 paise/kWh trading margin as per MoP Competitive Bidding Guidelines 2023 and CERC Trading License Regulations 2020 - no separate MERC approval needed
- Directed MSEDCL to coordinate with MSETCL/STU for timely inter-state transmission corridor augmentation, given MSEDCL bears responsibility for Grid Access/GNA under CERC Connectivity Regulations 2022
- MSEDCL and SJVN to submit signed copy of Power Supply Agreement to Commission for record post this order
- MSEDCL responsible for obtaining Grid Access/GNA under CERC Connectivity Regulations 2022 at its own risk and cost
- MSEDCL directed to coordinate urgently with MSETCL/STU for augmenting inter-state transmission corridor capacity aligned to this procurement
- MSEDCL to seek Government intervention if needed for clearances/Right-of-Way delays impacting transmission scheme implementation
- Scheduled commencement of supply from projects within 24 months of PPA signing (per original RfS terms)
- Power procured to be factored into MSEDCL's Resource Adequacy Plan filing under MERC Resource Adequacy Regulations
- • Validates FDRE (RE+storage) as a viable Section 63 competitive-bidding route for DISCOMs to secure peak-hour firm power at Rs.4.45-4.46/kWh, cheaper than exchange peak rates of Rs.6-10/kWh - relevant benchmark for C&I looking at group captive/FDRE PPAs
- • Confirms with rising Green Open Access uptake by C&I consumers, DISCOMs like MSEDCL will increasingly rely on FDRE-style RTC contracts to serve residual/peak demand, potentially affecting future OA banking/peak-power tariffs
- • Establishes regulatory precedent on trading margin (7 paise/kWh) for intermediary procurer structures - useful for developers structuring multi-state FDRE sales via agencies like SJVN/NHPC/REMCL
- • Highlights transmission corridor/GNA risk allocation to buying entity (DISCOM) - RE/storage developers bidding into inter-state FDRE tenders should track state-level ISTS augmentation commitments as a project risk factor
This order is a template validation for inter-state FDRE procurement via intermediary REIAs (SJVN/NHPC/REMCL model) and confirms MERC will approve such PSAs summarily once CERC has adopted the underlying tariff under Section 63 - reducing state-level regulatory risk for RE+storage developers already selected in central tenders. For C&I and developers, the real signal is DISCOMs' growing appetite for FDRE to hedge peak-hour exchange price volatility (Rs.6-10/kWh), which will shape future peak power availability and possibly OA banking economics. Transmission corridor risk remains the key execution watch-item.
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.