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GROWTHIFYE ONE-PAGER·MPERC · Madhya Pradesh·tariff order·Case 47/2025·Order dated 2025-08-18

MPERC approved all 7 deviations sought by RUMSL/MPPMCL from MoP Solar Bidding Guidelines for the 600 MW/440 MWh peak-power solar-BESS project at Morena Solar Park

Petition under Guideline 16 of the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects (Resolution number 27/01/2023-RCM) issued by the Ministry of Power, Government of India on 28 July 2023 (as amended from time to time) under section 63 of the Electricity Act, 2003, seeking certain additional deviations from the aforementioned guidelines. (Petitioner: 1) Rewa Ultra Mega Solar Ltd., Bhopal 2) Managing Director, MP Power Management Company Limited)

Background · what was sought

RUMSL (solar park developer for MP) and MPPMCL (sole procurer, holding co. of MP discoms) sought MPERC approval under Guideline 16 of MoP's Solar Bidding Guidelines (as amended 12.02.2025, which shifted deviation-approval power from State Govt to Appropriate Commission) for 7 additional deviations, beyond those already cleared by GoMP Energy Department on 11.11.2024, for the Morena Solar Park bid process. The project involves 2 units (300 MW each) of grid-connected solar PV with co-located BESS, designed to supply 440 MWh peak power (morning+evening) each, aggregating to 600 MW max offtake, aimed at meeting MP's peak-hour power shortfall and RE targets.

What the Commission decided
  • Allowed affiliate of successful bidder (whose financials were relied on at bid stage) or its SPV to execute PPA/project agreements, subject to same shareholding (Guideline 12) and bid-responsiveness (Guideline 8) conditions.
  • Allowed SPD to source up to 5% renewable energy annually from green market/bilateral sources to meet peak supply obligations, supplied to Procurer at PPA tariff; cost above PPA tariff borne by SPD.
  • Allowed transfer of unit (free of cost) to Procurer/RUMSL on PPA expiry, or decommissioning/dismantling at SPD's cost on termination for SPD default.
  • Allowed extension of commissioning 'long stop date' from 6 months to 12 months from SCSD.
  • Allowed mandatory offtake by Procurer of power from early commissioning (full/part), with prior-notice period extended from 15 to 30 days, at PPA tariff.
  • Allowed CUF cap of 35% with mandatory sale of energy exceeding 35% CUF to Procurer at nominal ₹0.01/kWh (no third-party sale), and removed requirement to sell on power exchange to claim generation compensation, both subject to compliance with MPERC DSM Regulations, 2018 due to lack of separate feeders for intra/inter-state transactions.
Way forward agreed by the Commission
  1. SPDs to be selected via ongoing RfP/Bid Process for Morena Solar Park incorporating the 7 approved deviations into RfS, PPA and PSA.
  2. SPDs to execute PPA with Procurer (MPPMCL) and RUMSL, plus separate Implementation Support Agreements (ISAs) with RUMSL for land, evacuation infrastructure and site access.
  3. SPD sourcing of green-market power (5%) to comply with relevant regulations and SLDC directions under Section 33 of the Electricity Act, 2003.
  4. Mandatory sale of excess energy above 35% CUF and non-power-exchange compensation claims to comply with MPERC (Forecasting, Scheduling, DSM) Regulations, 2018 (as amended) given absence of separate feeders for interstate/intrastate transactions.
  5. Affiliate/SPV substitution (if used) must maintain shareholding restrictions per Guideline 12 and satisfy Guideline 8 bid-responsiveness conditions.
  6. Project transfer/decommissioning mechanics (post-PPA expiry or SPD default) to be built into project agreements as per Commission's approved deviation.
What it means for C&I buyers, OA users & developers
  • • C&I/RE developers bidding for Morena Solar Park get more flexibility (affiliate execution, 12-month commissioning buffer, 5% market sourcing) improving bankability, but face capped CUF (35%) and near-zero (₹0.01/kWh) compensation for surplus off-peak generation.
  • • Guaranteed mandatory offtake by Procurer for early-commissioned and excess energy reduces merchant/market-sale risk for developers but ties revenue entirely to the single Procurer (MPPMCL), limiting exchange/third-party sale optionality.
  • • No power-exchange sale route exists for curtailed/undelivered energy or excess CUF power due to feeder/metering constraints under MPERC DSM Regulations, 2018 — relevant for storage-linked RE developers structuring MP intra-state projects.
  • • Sets a template/precedent for future solar+BESS peak-power tenders in MP (and possibly other states) regarding deviations from central Solar Bidding Guidelines, useful reference for C&I developers evaluating similar state-park bids.
Growthifye take

This order operationalises the post-12.02.2025 regime where state ERCs, not state governments, clear deviations from MoP's Solar Bidding Guidelines — expect more such petitions as solar+BESS peak-power projects scale up. For developers, the approved flexibilities (affiliate execution, 12-month grace, mandatory offtake for early/excess energy) meaningfully de-risk financing and construction, but the 35% CUF cap and token ₹0.01/kWh for surplus energy signal that upside from over-generation is deliberately suppressed to keep Procurer costs predictable. Since MPPMCL co-filed the petition, terms are procurer-friendly by design; bidders should price risk accordingly and treat this as a state-specific template rather than a general precedent for merchant sale 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.

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