MERC allows AEML-D's bid-document deviations for 1500 MW RE-RTC procurement but rejects PPA-free gap; directs ADTPS PPA extension to 31 Mar 2030
Case of Adani Electricity Mumbai Ltd.-Distribution seeking approval for deviations under Long-Term procurement of power 1500 MW (750 MW + additional 750 MW under Green Shoe Option) from grid connected RE Projects, complemented with power from any other Source on Round the Clock (RTC) basis, under Tariff-based Competitive Bidding process
AEML-D sought MERC approval to deviate from Standard Bidding Documents for its Long-Term 1500 MW (750+750 MW Green Shoe) RE+RTC tender (Section 63/86(1)(b)), after repeated bid extensions attracted zero bidders. Proposed relaxations covered availability norms, mandatory RE share, change-in-law cutoff, clipped energy sale, eligibility of commissioned RE plants, single-component early supply, trader participation, and extension of AEML-D's ADTPS PPA (expiring 31 Mar 2025) pending new capacity commissioning.
- Approved reduction of annual & peak-hour availability from 90% to 80% (except Mar/Apr/May/Jun/Sep/Oct) to boost bidder participation.
- Approved gradual mandatory RE supply ramp: ≥30% (Yr1), ≥40% (Yr2), ≥51% (Yr3 onward), and flexibility to change RTC configuration/location up to Year 3.
- Approved shifting Change-in-Law cutoff from e-reverse auction date to bid submission date to protect bidders.
- Approved sale of clipped/excess generation above 80% availability to third parties, subject to AEML-D's first right of refusal up to contracted capacity.
- Allowed already-commissioned merchant RE plants (without existing long-term PPA) and Trading Licensees to participate; approved 100% (not 50%) tariff for early single-component (wind/solar) supply, subject to AEML-D's commercial discretion.
- Rejected AEML-D's request to procure alternate power sources instead of ADTPS post-31 Mar 2025; instead directed AEML-D to sign a fresh PPA with APL for 500 MW ADTPS power till 31 March 2030 on existing terms.
- AEML-D to modify RfS/PPA per approved deviations and submit revised bid documents to MERC for information before re-launching the bidding process.
- AEML-D to sign fresh PPA with APL for 500 MW ADTPS power (1 Apr 2025–31 Mar 2030) on existing AEML-D/AEML-G terms.
- APL to file revised ARR/Tariff petition for FY2025-26 to FY2029-30 within one week of this order.
- AEML-D to revise its own ARR/Tariff projections for FY2025-26 to FY2029-30 factoring in extended ADTPS PPA.
- AEML-D to re-justify the 1500 MW procurement quantum at tariff-adoption stage, given 5-year ADTPS availability now confirmed.
- AEML-D must seek MERC's prior approval before exercising the 750 MW Green Shoe Option after tariff discovery.
- • Relaxed availability (80%) and phased RE-share norms could improve bid response and potentially yield more competitive RE-RTC tariffs relevant to C&I open-access/green power buyers in Mumbai.
- • Entry of Trading Licensees and already-commissioned merchant RE plants widens the supplier base, which may benefit developers seeking faster PPA routes without new construction risk.
- • Continuation of 500 MW ADTPS embedded generation till 2030 signals persistent Mumbai transmission constraints — C&I open-access users should expect continued embedded-generation-linked costs/priority dispatch in Mumbai distribution area.
- • RE developers get more flexible commissioning/configuration timelines (up to 3 years) and higher compensation (100% tariff) for early single-component supply, improving project financing and staging options.
This order pragmatically balances tender viability with consumer protection—diluted availability/RE-ramp norms should finally unstick AEML-D's long-stalled RE-RTC bid, a template other discoms may copy. The bigger takeaway is MERC's firm stance on Mumbai embedded generation: despite AEML-D's push to exit ADTPS, the Commission mandated a 5-year PPA extension, reinforcing that transmission-constrained load centres will keep embedded thermal capacity contracted regardless of RE ambitions. Developers bidding into the revised RfS should price in relaxed availability but note AEML-D's first-right-of-refusal and discretionary clauses that retain buyer-side flexibility.
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.