MERC Approves Tariff of Rs.2.59/kWh for a Hybrid Project

MERC Approves Tariff of Rs.2.59/kWh for a Hybrid Project Vibrant Energy, Saint-Gobain Sign PPA for Round-the-Clock Renewable Energy

TPC-D had approached the commission seeking tariff approval

The Maharashtra Electricity Regulatory Commission (MERC) at the behest of Tata Power Company Limited (Distribution) (TPC-D) has approved the tariff of Rs.2.59/kWh for evacuation of power from a wind+solar hybrid renewable energy project of capacity 225 MW.

The project will be set up in parts in Rajasthan and Maharashtra by Tata Power Green Energy Limited. TPC-D had submitted to the MERC that this power purchase will accrue towards fulfilling its renewable purchase obligation (RPO).

While going through submissions, MERC observed that a transparent reverse auction had been conducted by TPC-D to arrive at the rate. There were two bidders; AMP Energy Green Private Limited which had quoted a tariff of Rs.2.60/kWh to set up 100 MW of wind+solar hybrid projects and Tata Power Green Energy Limited that had bid for 225 MW wind+solar hybrid project capacity at a tariff of Rs.2.59/kWh.

It was also observed that the tariff quoted in TPC-D’s hybrid auction was lower than that quoted in Solar Energy Corporation of India (SECI)’s phase-I (Rs.2.67/kWh) and phase-II (Rs.2.69/kWh) hybrid auctions.

In its order, the MERC stated that TPC-D can now enter into a power purchase agreement (PPA) with Tata Power Green Energy Limited for a tenure of 25 years at a tariff of Rs.2.59/kWh. The power procured will be considered for meeting the Solar and Non-Solar RPO of TPC-D.

Recently, the MERC had provided relief to TPC-D in a matter of stand-by charges concerning Indian Railways.

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Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.