MPERC adopts Rs 2.400-2.854/kWh tariff for 4022.4 MW decentralized solar (493 LoAs) under KUSUM-C/Surya Mitra Krishi Feeder Scheme; denies extra CAPEX claim by discom
Petition under Section 63 of the Electricity Act, 2003 for adoption of tariff of Grid Connected Solar PV Systems selected through competitive bidding process for sale of power within the State in terms of the Surya Mitra Krishi Feeder Scheme with feeder solarization component under Guidelines for Implementation of Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahaabhiyaan (PM KUSUM) Scheme (Office Memorandum F.No. 32/645/2017-SPV Division) issued by the Ministry of New and Renewable Energy, Government of India on 17.01.2024. (Petitioner: 1) M.P. Urja Vikas Nigam Limited)
MPUVNL, State Implementing Agency for PM-KUSUM, floated RFP No. F/UVN/2024/KUSUM-C/V/5183 (11.02.2025) for 1200 MW CFA-equivalent (up to 4028 MW total) grid-connected solar PV plants at 33/11kV substations for sale to MPPMCL, under the Surya Mitra Krishi Feeder Scheme (feeder solarization component of PM-KUSUM-C). Objective: meet MP's rising 'other RE' RPO trajectory (23.44% FY22-23 to 28.13% FY29-30), diversify energy sources, and support agriculture feeder solarization. MPUVNL sought Section 63 tariff adoption for tariffs discovered via competitive bidding.
- Adopted tariff range Rs 2.400 to Rs 2.854/kWh discovered through competitive bidding for accepted capacity of 4022.4 MW (493 LoAs issued).
- Held the bidding process transparent and compliant with MNRE guidelines dated 17.01.2024, satisfying Section 63 requirements, as no standard MNRE bidding documents exist for KUSUM-C.
- Rejected MPPMCL's request for additional CAPEX approval for substation augmentation/reverse power flow handling — per RfP clauses 1.3 & 1.4, developers (RPGs) bear these costs, not the discom.
- Directed that the order is subject to outcome of a separate pending petition revising capacity addition (600 MW solar+440 MW BESS, 282.5 MW standalone BESS, and reallocation of 3300 MW SECI/SJVN capacity to decentralized KUSUM mode).
- Directed parties to promptly sign Power Purchase Agreements.
- Directed that solar power procured under KUSUM-C/SMKFS shall count toward MP Discoms' RPO under MPERC RE Regulations, 2021 (as amended).
- Petitioner (MPUVNL) and successful bidders/MPPMCL to promptly execute PPAs for the 4022.4 MW accepted capacity.
- Bidders with QCFA (Quoted CFA) bids to choose per MPNRED's three scenarios — with CFA (if MNRE extends deadline, ALMM List-1/2 mandatory for QCFA capacity), without CFA (execute PPA at quoted rate, ALMM List-1 mandatory), or withdraw with EMD refund.
- Developers to bear all connectivity, land and substation-augmentation costs per RfP clauses 1.3/1.4; no additional CAPEX approved for MPPMCL/Discoms.
- Procured solar power to be counted toward MP Discoms' RPO compliance under MPERC RE Regulations, 2021.
- Final disposition/quantum remains contingent on the Commission's ruling in the separate pending petition on revised 3300 MW SECI/SJVN reallocation and 600 MW solar+440 MW BESS proposal.
- Balance ~4026.4 MW under decentralized allocation (beyond the 523.6 MW already tied up) to be progressively tendered/tied up.
- • Competitive discovered tariffs (Rs 2.40-2.85/kWh) for decentralized substation-linked solar reinforce downward pressure on MP's overall power procurement cost mix, indirectly supporting stable/lower C&I tariffs and RPO compliance costs passed through by Discoms.
- • RE/solar developers bidding into similar substation-saturation-mode schemes must budget for all connectivity and substation augmentation costs themselves — Commission has expressly disallowed any CAPEX pass-through to the discom.
- • The scheme's 11kV-side injection model creates known reverse power-flow risk at ageing 33/11kV infrastructure; developers and financiers should factor evacuation constraints (bay space, PTR capacity) into project bankability at specific substations.
- • MP's ongoing reshuffling of 3300 MW from ISTS-connected SECI/SJVN sourcing to decentralized intrastate KUSUM-C procurement signals a broader strategic shift favoring in-state/decentralized RE — relevant for developers and C&I open-access players tracking MP's future solar tender pipeline and RPO-linked opportunities.
This is a large, competitively-priced decentralized solar tranche (4022 MW at a keen Rs 2.40-2.85/kWh) that MPERC has cleared quickly and unconditionally on tariff, while firmly protecting Discom finances by pushing all evacuation/augmentation capex onto developers. The real uncertainty for the market is procedural, not tariff-related: PPA execution is time-boxed against a hard MNRE deadline with CFA optionality still being resolved case-by-case, and the entire allocation sits conditional on a parallel pending petition reshaping MP's broader 3300 MW SECI/SJVN-to-decentralized strategy. Developers awarded LoAs should move fast on PPA signing and stress-test 11kV injection feasibility at their allotted substations before financial close.
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.