MERC has approved the petition filed by Tata Power Company Limited – Distribution to procure 150 MW of solar power at a tariff rate of Rs 2.83/kWh
The Maharashtra Electricity Regulatory Commission (MERC) in its latest order has approved the petition filed by Tata Power Company Limited – Distribution (TPC-D) to procure 150 MW of solar power at a tariff rate of Rs 2.83/kWh for a duration of 25-years.
In its petition to the MERC, TPC-D had asked the commission to accord approval for adoption of the tariff as discovered in the competitive bidding process, and to accord approval for the purchase of power for a period of 25 years and subsequent signing of PPA, with the successful bidder for 150 MW capacity. Furthermore, the firm was also seeking approval to make this power eligible for meeting the Solar RPO requirement of the Petitioner.
The 150 MW solar tender was floated by TPC-D in August and that Four bidders, including ReNew Power, Tata Power Renewable Energy Limited (TPREL), Azure Power, and Avaada Energy Private Limited were the interested bidders. After the pre-bid meeting for this tender, TPC-N modified some of the conditions in the bid document approved by the commission to ensure better participation by the bidders. The tender had then received two bid submissions for 150 MW each by Avaada Energy and TPREL. After the reverse auction, TPREL emerged as the winner, and a Letter of Award (LoA) was issued to it for project development.
The commission noted that TPC-D had conducted a transparent process of competitive bidding for the procurement of solar power and discovered a tariff of Rs 2.83/kWh which is slightly higher than the rates earlier approved by the commission for MSEDCL, that was Rs2.72/kWh. However, those adopted rates were before the imposition of safeguard duty, and therefore, they were eligible for a “Change in Law” compensation under the PPA. Further, the commission ruled that Tata Power should fix the ceiling rate after its due diligence and the prevailing market conditions.
In its final order, the commission allowed TPC-N to go ahead and enter into the petitioned long-term energy purchase agreement with the successful bidder for a period of 25 years. The commission has added that the solar power procured from the supplier will be considered for meeting the solar renewable purchase obligation (RPO) requirements of Tata Power Distribution.
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