MERC adopts Rs.5.90/kWh tariff discovered via competitive bidding for MSEDCL's 2500 MW RE-RTC power procurement from Adani Power
Petition of MSEDCL for seeking approval and adoption of discovered tariff through the competitive bidding process held for long-term procurement of 2500 MW Round the Clock (RTC) power from Grid Connected Renewable Energy Projects, complemented with Power from any other source or storage AND Interlocutory Application of Maharashtra State Electricity Distribution Company Limited (MSEDCL) seeking urgent listing in Case No. 82 of 2026.
MSEDCL sought Section 63 approval to adopt the tariff discovered through competitive bidding for long-term (25-year) procurement of 2500 MW Round-the-Clock (RTC) power from grid-connected RE projects complemented with storage/other sources. This followed MERC's prior approval (30 Mar 2026 order) for the procurement to meet resource adequacy, stable RTC supply, rising data-centre/semiconductor demand, and to convert MSEDCL's existing 5000 MW non-firm solar PPA into firm supply via mandatory utilisation by the RTC supplier.
- Petition in Case No. 82 of 2026 allowed; IA 75 of 2026 for urgent listing disposed of.
- Tariff of Rs. 5.90/kWh adopted under Section 63, discovered via bidding + e-reverse auction, for 2500 MW RTC power from Adani Power Limited (L1 bidder).
- Bidding process (tender floated 2 Jan 2026, 4 bidders, 6250 MW offered against 2500 MW tendered) held to be transparent, fair and compliant with RTC Guidelines and Section 63.
- Tariff held market-reflective, benchmarked favorably against thermal RTC levelized tariffs (Rs.6.31-8.90/kWh) and AEML RE-RTC tender (Rs.6.38/kWh).
- MSEDCL directed to submit the final signed PPA copy with Adani Power Ltd for the 2500 MW RE-RTC supply.
- Deviations from RTC Guidelines in bidding documents (earlier approved on 30 March 2026) stand reaffirmed as part of the process validation.
- MSEDCL to submit final signed PPA with Adani Power Ltd for Commission's record.
- PPA implementation to commence per 25-year term with performance-linked penalty regime effective from commercial operation.
- Successful bidder (Adani Power) to assume scheduling/input cost risk and mandatorily utilise 5000 MW existing Solar PPA power.
- Compliance monitoring on monthly/annual CUF, peak-hour supply and 51% traceable green power to begin per PPA terms.
- RPO compliance benefit to accrue to MSEDCL under Regulation 19 of MERC RPO Regulations, 2019 via traceable green component.
- • Establishes a market benchmark (Rs.5.90/kWh) for firm, traceable RTC green power procurement structures relevant to C&I/data-centre buyers seeking 24x7 green power.
- • Signals discom-scale RTC bundling of solar+storage+other sources as a viable, cost-competitive alternative to thermal RTC (which costs Rs.6.31-8.90/kWh levelized).
- • Supply-based (not availability-based) contracting model with steep penalties (up to 400% LD) shifts performance risk to generators, a template developers must price into future RTC bids.
- • MSEDCL's enhanced RTC supply capacity could ease future open-access/green power availability for large C&I/data-centre loads in Maharashtra, though this tariff applies to MSEDCL's own procurement, not directly to open-access consumers.
This is a landmark 'first-of-its-kind' supply-based RTC order that discom-scale buyers and RE/storage developers should study closely for risk-allocation templates - full input-cost and scheduling risk on the supplier, steep LD penalties, and mandatory integration of an existing solar PPA are unusual and aggressive terms that pushed pricing to Rs.5.90/kWh, below thermal RTC levelized costs. For C&I/data-centre developers eyeing green RTC supply, this validates bundled RE+storage+other-source models as commercially viable, but the risk-heavy structure won't suit smaller developers without balance-sheet strength; expect similar tenders to reference this as benchmark going forward.
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.