MERC partly allows AEML's 1000 MW RTC RE+thermal bid plan; permits only 500 MW in phase 1, approves most bidding deviations
Case of Adani Electricity Mumbai Limited for seeking approval of procurement of 1000 MW of Power from grid connected Renewable Energy Power Projects, complemented with Power from Coal based Thermal Power Projects in India on Round the Clock (RTC) basis, under Tariff-based Competitive Bidding process
AEML sought approval to procure 1000 MW of Round-the-Clock (RTC) power via long-term PPA under MoP's Tariff-Based Competitive Bidding Guidelines, combining grid-connected RE (≥51%) with firm thermal power on domestic coal, to reduce heavy reliance on short-term/spot power (30-40% of purchase) following termination of the VIPL PPA and MERC's earlier direction (Case 325/2019) to cap short-term reliance at 10-12%. AEML also sought approval of draft RfS/PPA with several deviations from Standard Bidding Guidelines (SBG) and sought RPO credit for RE procured.
- Petition partly allowed; AEML permitted to bid for only up to 500 MW RTC capacity in Phase 1, not the full 1000 MW sought
- AEML's demand projections found overstated (5% YoY growth vs MERC's approved 2%; FY21 actuals 16% below MYT projection), requiring revisit/justification
- Deviation allowed: Delivery point at Maharashtra STU periphery instead of CTU Interconnection Point
- Deviation allowed: Deletion of Payment Security Fund and State Government Guarantee clauses, given AEML's LC-based security and payment track record
- Deviation rejected: Restricting non-RE firm power to domestic coal only; Commission directed AEML to keep bidding technology-agnostic per amended MoP guidelines
- Deviation allowed: Variable tariff component for non-RE power to be quoted as on bid submission date (not COD), escalated per CERC index; but rejected AEML's proposal to skip CERC escalation index in evaluation
- AEML to modify bidding documents (RfS/PPA) per Commission's rulings on deviations (paras 13,14,15,18) and submit to Commission for information
- AEML to initiate bidding for up to 500 MW RTC power in Phase 1, incorporating technology-agnostic non-RE source eligibility and 60% fixed-tariff ceiling for non-RE component
- Alternatively, AEML may resubmit a fresh petition with detailed demand-supply/financial sensitivity analysis justifying full 1000 MW, potentially with a Green Shoe option (500+500 MW)
- AEML must redo demand-supply projections using realistic growth rates and factor in COVID-19 demand impact before further procurement
- Financial Closure required within 12 months of PPA signing (per original bid terms)
- Post-bid discovered tariff to be benchmarked against Rs. 3.50/kWh short-term rate; if higher, AEML to explore cheaper alternatives before proceeding
- • C&I open-access and RE developers gain a new 500 MW RTC bidding opportunity in Maharashtra with 25-year PPA, ISTS waiver eligibility if commissioned by 30 June 2025
- • Non-RE (firm/balancing) capacity bidding is now open to any technology (not just domestic coal), widening participation for storage, gas, hydro or other firm-power providers
- • RE power procured under this PPA will count toward AEML's RPO compliance, relevant for obligated entities tracking discom RE trajectories
- • Discovered tariff will be benchmarked against Rs.3.50/kWh short-term reference; C&I consumers of AEML may see power purchase cost impact depending on bid outcomes and phased 500 MW rollout
MERC's phased approach (500 MW now, rest via fresh justified petition) is a prudent check against locking DISCOM consumers into 25-year surplus capacity based on inflated demand forecasts. Developers should track AEML's Phase-1 RfS closely — technology-agnostic non-RE eligibility and dropped Payment Security Fund/Guarantee lower entry barriers, but the 60% fixed-tariff cap and Rs.3.50/kWh benchmark will shape competitive bid strategy.
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.