MERC approves MSEDCL's procurement of additional 500 MW Pumped Hydro Storage capacity from Torrent Power Ltd at the already-adopted tariff, as an exceptional, non-precedential case.
Maharashtra State Electricity Distribution Company Ltd. seeking approval for procurement of additional 500 MW from the successful bidder in the competitive bidding process held for procurement of 2000 MW (2000 MW under green shoe option) energy storage capacity from InSTS connected pumped hydro storage plant/s.
MSEDCL floated a tender (09.03.2024) for 2000 MW (plus green shoe options) InSTS-connected Pumped Hydro Storage capacity for 40 years. After successive approvals, total permissible capacity became 4000 MW (2000 MW base + 2000 MW green shoe), of which 3000 MW was already allotted to JSW Neo Energy and Torrent Power (1500 MW each) at Commission-adopted tariffs (Order dated 26.09.2024). Torrent Power sought additional 500 MW from the remaining 1000 MW base capacity at the same discovered tariff, citing competitive pricing and MSEDCL's need for storage to support large-scale solar procurement (MSKVY/MSKVY 2.0) and meet its Energy Storage Obligation under RPO Regulations.
- Petition in Case No.171 of 2024 allowed.
- Approved procurement of additional 500 MW Pumped Hydro Storage capacity from Torrent Power Ltd. at the tariff already adopted vide Order dated 26 September 2024 (AFC Rs. 83,98,400/MW/Annum, 25% cycle loss).
- Total PSP capacity contracted with Torrent Power now stands at 2000 MW (1500 MW + 500 MW additional); overall PHSP tender allocation rises to 3500 MW out of permissible 4000 MW.
- Capacity/power procured under this order to count towards MSEDCL's Energy Storage Obligation requirement.
- Clarified this approval is an exceptional case and shall not be treated as precedent for future power procurement.
- Directed MSEDCL to file signed Energy Storage Facility Agreements (ESFAs) with the Commission.
- MSEDCL to execute and file signed Energy Storage Facility Agreements (ESFAs) with Torrent Power Ltd. for the additional 500 MW.
- MSEDCL to account for the additional 500 MW capacity towards its Energy Storage Obligation compliance under RPO Regulations.
- Any future additional procurement by any Discom must go through a fresh competitive bidding round; this order's tariff carry-over is not to be relied upon as precedent.
- MSEDCL to continue integrating PSP storage capacity planning with large-scale solar rollout under MSKVY/MSKVY 2.0.
- • C&I buyers and RE developers should note MERC's reluctance to allow tariff carry-over beyond adopted bids in future - fresh procurements will need fresh competitive bidding, limiting scope for negotiated top-ups.
- • Growing PHSP storage capacity (now 3500 MW contracted) signals increasing grid-level storage support for RE integration, which may improve schedulability and reduce curtailment risk for RE generators selling to MSEDCL.
- • Storage capacity counted towards Energy Storage Obligation could ease MSEDCL's compliance burden, indirectly supporting continued large-scale solar/RE procurement (MSKVY 2.0) relevant to C&I open-access and group captive RE off-takers.
- • Developers eyeing long-term storage PPAs with Maharashtra Discoms should benchmark tariffs against the Rs. 83.98 lakh/MW/annum (25% cycle loss) level treated as reasonable and market-reflective by MERC.
This is a narrow, fact-specific approval - MERC explicitly flags it as non-precedential, so developers shouldn't expect similar post-facto tariff extensions in other cases. For C&I and RE developers, the real signal is MERC's continued push to lock in PHSP capacity (3500 MW now) to firm up RE and meet storage obligations, which should support grid reliability for open-access RE consumers, but any new capacity asks will require competitive re-bidding, not negotiated add-ons.
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.