MSEDCL Gets Approval For 14 MW of Solar Projects Under PM-KUSUM

Highlights :

  • While the MERC permission was  a formality, what should be worrying is the abysmal response to tenders bid out by MSEDCL under PM KUSUM, and even otherwise
  • Even the higher price ceiling of Rs 3.10, mandated partly due to DCR requirements, has not really worked to attract bidders.

Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) has received permission from the MERC for the adoption of tariff for long-term power procurement from 14 MW solar projects selected through a competitive bidding process that was launched for 500 MW of solar projects in the state.  These solar projects will be installed under Section 63 of the Electricity Act 2003 under component A of PM-KUSUM from 0.5 to 2 MW capacity projects connected to the distribution network.

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MSEDCL Petition:

The PM KUSUM Scheme was introduced by the Indian government on February 8th of this year, and on July 22nd, 2019 it announced rules for the execution of decentralised solar project with a capacity of 0.5 to 2 MW under Component-A. The 22 July 2019 guidelines provide a standard PPA document.

MSEDCL received 500 MW of capacity under Component-A from MNRE on January 13, 2021. MSEDCL published a tender for the long-term purchase of 500 MW of solar electricity with a ceiling tariff of Rs. 3.10 per unit through competitive bidding (E-reverse auction) under KUSUM Component-A in accordance with MNRE rules and standard PPA contracts.

Commission’s Analysis and Rulings

As part of KUSUM-component A’s A, farmers, groups of farmers, cooperatives, panchayats, and Farmer Producer Organizations and Water User associations are required to set up Solar PV projects with a capacity of 0.5 to 2 MW. In accordance with this plan, there is also the option of a private developer establishing such a project by leasing land from the framers. Under the KUSUM-A programme, MSEDCL has been granted 500 MW of capacity by MNRE. In accordance with this programme, MSEDCL is qualified to receive a procurement-based incentive of 0.40 rupees per unit for a period of five years following the project’s certificate of delivery, or rupees 6.6 lakh for each MW of installed capacity, whichever is less.

As a result, in addition to the fact that the tariff found during the current bidding process reflects current market trends, the procurement-based incentive will also have an impact on lowering the cost of the power purchase to that degree.

Accordingly, after competitive bidding process, MSEDCL has received following tariff: 

Sr.No Tender No Name of Bidder Capacity per location (MW) Quoted Tariff (Rs/unit)
1 T-45 Ashutosh Valmik Rajput 1 3.09
2 Laxmikant Narayanrao Loharekar 2 3.05
3 Majid Rafik Shaikh 0.5 3.1
4 Manda Maruti sanap 1 3.1
5 Pandurang Shankar Gajare 1 3.09
6 Prasen Hemantrao Vinchurkar 1 3.1
7 Rahul Pritamsingh Upwanshi 1 3.1
8 Rajesh Uttamrao Vitekar 2 3.1
9 Ramhari Vyankatrao Mantri 2 3.09
10 Sadashiv Vyankatrao Mantri 0.5 3.09
11 V.D Electricals 1 3.1
12 Varad Electricals & Engineering 1 3.1
Total 14 MW

 

The Commission, while granting approval, has also mandated finishing up the signing of PPA within 30 days from the date of its order . And within 15 days of signing the PPA, MSEDCL must provide a copy to the Commission.

For all additional information reader can view/download this Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) tender documents consisting all the specification here.

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