MPERC approves most deviations sought by MPPMCL from MoP's Wind Bidding Guidelines, clearing way for 800 MW (+100% Green Shoe) wind power bidding to proceed
Petition under Clause 18 of the Guidelines for Tariff Based Competitive Bidding Process for Procurement Power from Grid Connected Wind Power Projects, issued by the Ministry of Power, Government of India on 26.07.2023 and amendments thereof under section 63 of the Electricity Act, seeking deviations from the guidelines and under Section 86(1)(b) of the Electricity Act, 2003. (Petitioner: 1) Managing Director, MP Power Management Company Limited)
MPPMCL, the holding company procuring power for MP's three discoms, sought to procure 800 MW of grid-connected wind power via tariff-based competitive bidding (e-reverse auction) plus a Green Shoe Option of up to 100% additional capacity (800 MW), from projects anywhere in India, to meet RPO trajectory and future discom demand. Under Clause 18 of MoP's Wind Bidding Guidelines (26.07.2023, as amended) and Section 63 of the Electricity Act, MPPMCL sought Commission approval for numerous deviations in its draft RfS and PPA. Interim permission to launch bidding (subject to final approval) was granted on admission (11.06.2025); this order finally disposes of the deviations sought.
- Approved 25+ of 27 proposed deviations in RfS/PPA including EMD reduction to 1% of bid value, fixed CUF with 22% floor, financial closure penalty structure, ISTS-benefit sharing for early commissioning, 25-year PPA term from ACSD, multi-location capacity split, and lead-member shareholding lock-in tied to ACSD
- Rejected proposal to cap generation compensation for reduced offtake linked to non-scheduling (contrary to Clause 6.5.2 of Guidelines)
- Rejected two-tier (≥100MW vs <100MW) transmission cost-sharing categorization for lack of justification
- Held that removal of benchmark tariff, alternate net-worth criteria and 25-year PPA duration do not constitute 'deviations' since Guidelines already grant procurer discretion - no separate approval required for these
- Directed MPPMCL to expedite financial arrangements with REC/PFC/IREDA to enable 'Payment on Order Instruments'/Letter of Undertaking in future bids, while allowing bank guarantee deviation for the present bid
- Permitted MPPMCL to initiate/continue the bidding process incorporating all approved deviations; Petition No. 41/2025 and IA No. 16/2025 disposed of
- MPPMCL to proceed with/finalize competitive bidding for 800 MW wind (+800 MW Green Shoe) incorporating only the deviations approved in this order
- Bid documents (RfS/PPA) to be corrected to remove disallowed clauses (extended generation compensation for reduced offtake; two-tier transmission cost-sharing) before bid finalization
- MPPMCL to expedite tie-ups with REC/PFC/IREDA to enable 'Payment on Order Instruments'/Letter of Undertaking mechanisms for future bids
- Any further corrigenda to bidding documents require prior Commission approval, consistent with earlier interim directions
- Financial closure to be achieved 6 months prior to SCSD, with structured penalty/extension mechanism as approved
- Petition disposed of; no further Commission proceedings required unless fresh deviations arise
- • Signals a large near-term MP wind pipeline (up to 1600 MW) that could underpin future group-captive, open-access or PPA-linked green power supply for C&I buyers in/around MP
- • Developer-friendly terms (lower EMD, CUF flexibility with 22% floor, ACSD-linked shareholding lock-in, early-commissioning ISTS benefit sharing) should widen bidder participation and may support more competitive tariff discovery
- • 25-year PPA tenure tied to ACSD (not SCSD) gives developers execution buffer, relevant for financing and timelines that C&I offtakers structuring wind-linked RE24x7/RTC deals should track
- • Rejection of extended offtake-constraint compensation and two-tier transmission cost-sharing keeps risk allocation closer to standard guidelines - useful precedent for evaluating similar state biddings
This order operationalises one of MP's largest wind procurements (up to 1600 MW) by clearing most of MPPMCL's requested flexibilities - lower EMD, CUF floor at 22%, ACSD-anchored timelines and an ISTS-saving sharing mechanism - which should improve bidder economics and competitive tariff discovery. The Commission's discipline in rejecting deviations that shifted grid-availability/offtake risk onto consumers (generation compensation, tiered transmission cost-sharing) is a useful signal for other states framing wind RfS deviations. Developers should watch for the corrigendum reflecting exact allowed clauses before submitting bids; C&I buyers tracking MP RE availability should monitor discovered tariffs as a benchmark for future group-captcaptive/open-access wind deals.
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.