MERC allows AEML-D to procure 1000 MW RE+thermal RTC power via competitive bidding, with conditional green shoe option and DTPS PPA extension till Oct 2024
Case of Adani Electricity Mumbai Ltd.-Distribution seeking approval for Long Term procurement of power qua 1000 MW (500 MW + additional 500 MW under green shoe option) from grid connected Renewable Energy Power Projects, complemented with Power from Coal based Thermal Power Projects on RTC basis, under Tariff-based Competitive Bidding process.
AEML-D sought approval to procure 1000 MW (500 MW + 500 MW green shoe option) of RE power complemented with coal-based thermal RTC power via tariff-based competitive bidding, approval of RfS/PPA drafts with deviations, extension of its DTPS PPA (expiring 22 Feb 2023) till 15 Oct 2024, and counting future RE procurement toward RPO compliance. This followed MERC's July 2021 order in Case 140/2020 which had approved only 500 MW and asked AEML-D to justify the additional 500 MW via demand-supply and financial sensitivity analysis.
- Approved 1000 MW procurement (500 MW + 500 MW green shoe) but green shoe to be exercised only if DTPS PPA is not further extended post Oct 2024, and only with prior Commission approval after tariff discovery
- Extended DTPS PPA (500 MW) till 15 October 2024 or actual commissioning of successful bidder, whichever is earlier
- Rejected AEML-D's deviation to evaluate bids on first-year tariff instead of CERC-escalation-based levelized tariff; directed compliance with MoP guidelines
- Accepted deviation allowing 10-year PPA term instead of standard 25 years
- Directed that RE power procured shall count towards AEML-D's RPO targets
- Directed STU/CTU and Maharashtra Transmission Committee to monitor 8 identified transmission schemes (~3872 MW added capacity, targeted by Dec 2024) to ease transmission constraints
- AEML-D to modify bid documents per Commission's rulings (drop first-year tariff evaluation, align with Aug 2022 MoP guideline amendments including 90% availability and First Right of Refusal) and submit to Commission for information
- AEML-D to initiate bidding process for 1000 MW (with green shoe) on RTC basis immediately after document modification
- Post tariff discovery, AEML-D must seek prior Commission approval before exercising the 500 MW green shoe option
- If DTPS PPA is not extended and discovered tariff is higher, AEML-D to file a fresh procurement petition by 31 December 2023
- MTC/STU/CTU to monitor implementation of 8 transmission strengthening schemes as GCC agenda items
- STU to periodically review validity of issued LTA/NOC and act if projects don't materialize
- • C&I consumers of AEML-D face continued near-term dependence on short-term/medium-term power (₹5.98/kWh benchmark) until long-term RTC supply commences around Oct 2024
- • RE developers get a large 500-1000 MW RTC hybrid tender opportunity, but only new (not already commissioned) RE capacity is eligible, and bid evaluation will use CERC escalation-based levelized tariff, not first-year tariff
- • Transmission constraints (CTU-STU ATC shortfall of 3110 MW) may delay ability to bring cheaper out-of-state RE/thermal power into Mumbai, affecting bankability/timelines for winning bidders
- • RPO compliance benefit is available — RE power procured under this scheme will count towards AEML-D's RPO targets, relevant for group captive/REC-linked open access strategies
This order signals MERC's cautious but supportive stance on RTC hybrid procurement, protecting consumers via strict conditionality on the green shoe option and rejecting tariff-evaluation shortcuts that could obscure true cost. Developers should track AEML-D's revised RfS closely—eligibility excludes brownfield RE assets, and transmission bottlenecks remain a real execution risk given STU's flagged 3110 MW ATC gap. The Dec-2023 trigger for a fresh petition also creates near-term regulatory uncertainty for anyone bidding into this tender.
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.