The Maharashtra Electricity Regulatory Commission (MERC) has approved Adani Electricity Mumbai Limited-Distribution’s (AEML-D) proposal to procure 750 MW of round-the-clock (RTC) renewable energy power from Powerpulse Trading Solutions Limited (PTSL) for a period of 10 years. The power will be procured at a weighted average levelised tariff of Rs 6.38/kWh.
AEML-D had approached the state regulator seeking approval for the adoption of the tariff discovered through a competitive bidding process for procuring power from grid-connected renewable energy projects complemented by power from other sources. The procurement is intended to help the utility meet rising electricity demand in Mumbai while also fulfilling its Renewable Purchase Obligation (RPO) requirements.
According to AEML-D, its peak electricity demand is expected to increase significantly in the coming years, rising from 2,056 MW in FY25 to approximately 2,739 MW by FY30. The projected growth is being driven by increasing commercial consumption, the expansion of data centres, transport electrification and rising residential electricity demand.
The utility said additional long-term power procurement would be required from FY28 onwards to maintain supply reliability and meet the city’s growing electricity needs. The proposed RTC renewable power arrangement is expected to provide a more consistent clean power supply by combining renewable generation with balancing power from other sources.
The competitive bidding process attracted four bidders, with companies collectively offering 1,500 MW of capacity. Following an e-reverse auction held on April 22, 2025, Powerpulse Trading Solutions emerged as the lowest bidder with a final tariff of Rs 6.38/kWh.
JSW Neo Energy was the second-lowest bidder, quoting Rs 6.39/kWh, while MB Power and Goldi Solar submitted bids of Rs 6.40/kWh and Rs 6.56/kWh, respectively.
Under the proposed supply arrangement, PTSL plans to meet the contracted RTC power requirement through a combination of renewable and thermal generation assets. The portfolio is expected to include 775 MW of solar capacity and 300 MW of wind capacity, supported by 540 MW of thermal generation to provide balancing power when renewable generation is unavailable or insufficient.
The arrangement is designed to provide firm power while addressing the intermittency associated with solar and wind generation. PTSL will also bear the risks associated with renewable energy variability, as well as interstate transmission charges and transmission losses, according to the terms of the procurement proposal.
MERC reviewed the bidding process and concluded that it had been conducted transparently and in accordance with Ministry of Power guidelines governing the procurement of RTC renewable energy. The Commission also assessed the tariff against recent renewable energy procurement benchmarks in Maharashtra.
The regulator compared AEML-D’s tariff with the tariff discovered by Maharashtra State Electricity Distribution Company Limited (MSEDCL) in its recently concluded tender for 2,500 MW of renewable energy with RTC supply. While MSEDCL discovered a tariff of Rs 5.90/kWh at the Central Transmission Utility (CTU) periphery, the effective tariff after accounting for transmission charges and losses was estimated at around Rs 6.46/kWh at the Maharashtra periphery.
Against this backdrop, MERC determined that AEML-D’s tariff of Rs 6.38/kWh was competitive and broadly reflective of prevailing market conditions.
The Commission also considered concerns regarding the availability of non-renewable balancing power. PTSL had participated in MSEDCL’s medium-term power procurement tender, raising questions over its ability to secure sufficient balancing capacity for AEML-D’s RTC supply.
In response, PTSL assured AEML-D that it would arrange the required balancing power from Vidarbha Industries Power Limited’s Butibori thermal power plant or from alternative sources, including Mahan Energen Ltd., in accordance with the provisions of the draft Power Purchase Agreement (PPA).
After reviewing the procurement process, tariff and proposed power supply arrangement, MERC concluded that the MERC AEML-D proposal offered a reasonable tariff and was in the interest of consumers. The Commission subsequently approved AEML-D’s proposal and directed the utility to submit the final executed Power Purchase Agreement (PPA) with Powerpulse Trading Solutions for regulatory review.
The approval comes as Indian utilities increasingly turn to RTC renewable power and hybrid generation models to address the intermittency of solar and wind energy. By combining renewable generation with firming and balancing resources, such procurement models can support grid stability while helping distribution companies meet rising electricity demand and renewable energy obligations.
For the battery energy storage sector, the development also highlights the growing importance of firm renewable power solutions in India’s evolving energy market. As demand for reliable clean electricity increases, RTC procurement models that combine solar and wind with balancing resources—including battery energy storage systems (BESS)—are expected to become increasingly important for utilities seeking to integrate higher shares of renewable energy into the grid.
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