The Maharashtra Electricity Regulatory Commission (MERC) has formally adopted the discovered tariff for the long-term procurement of 2,500 MW of Round-the-Clock (RTC) renewable power by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). Following a competitive electronic reverse auction (e-RA) process, Adani Power Limited (APL) has been identified as the successful L1 bidder.
The regulatory approval marks a significant step towards strengthening Maharashtra’s clean energy portfolio by enabling the integration of reliable and dispatchable renewable power into the state’s electricity grid, helping address the intermittency associated with conventional renewable energy sources.
The competitive bidding process concluded on April 1, 2026, with Adani Power Limited receiving the formal Letter of Award (LoA) at 8:30 PM. The RTC power procurement is linked to an existing 5,000 MW solar power agreement. Under the Executed Power Purchase Agreement (PPA) signed on October 29, 2024, Adani Renewable Energy Holding Fifty-Five Limited serves as the Solar Power Generator, providing the solar capacity that will support the RTC supply obligations.
The tender was conducted under a domestic competitive bidding framework to ensure transparency and efficient tariff discovery through the identification of the lowest bidder.
As part of the approved framework, tariff provisions have been clearly defined. For any non-renewable energy component of the supply, the tariff will comprise a 75 percent fixed charge and a 25 perent variable charge.
The agreement also outlines provisions for unrequisitioned power. In cases where MSEDCL does not requisition electricity made available at the Delivery Point, the supplier will be permitted to sell the power through power exchanges. Any gains generated from such sales, calculated as the difference between the net revenue earned and the PPA tariff liability, will be shared equally between MSEDCL and the supplier in a 50:50 ratio.
Under the transmission framework, MSEDCL will be responsible for securing General Network Access (GNA) for the entire contracted capacity. The supplier will bear all Inter-State Transmission System (ISTS) and GNA charges, along with associated losses up to the Delivery Point, while charges and losses beyond the Delivery Point will remain the responsibility of MSEDCL.
The Power Purchase Agreement provides for a supply period of 25 years from the Scheduled Commencement Date of Supply (SSD) of Phase III. The agreement considers RTC power a continuous supply of electricity generated from renewable sources and, where appropriate, augmented by Battery Energy Storage Systems (BESS) or other ancillary energy sources. When BESS is used, the storage facility has to be co-located with the solar project developed under the Executed PPA.
The agreement sets forth minimum supply obligations to ensure supply reliability and operational performance, including a minimum annual Capacity Utilisation Factor (CUF) of 80 percent, a minimum monthly CUF of 70 percent, and a minimum daily peak-hour CUF of 90 percent during the defined four-hour peak period.
At least 51 percent of the total annual electricity supplied under the agreement must be from traceable renewable energy sources.
The tariff adoption has been made as per Section 63 of the Electricity Act, 2003, in terms of the guidelines issued by the Central Government through Notification No. 23/05/2020-R&R dated 22.07.2020. Renewable energy sources under the project will continue to receive “Must Run” status, while scheduling of non-renewable energy components will be governed by Merit Order Despatch (MOD) principles.
Adani Power Limited has stated that the transaction is domestic in nature and does not involve any related-party arrangements, as neither the company’s promoters nor promoter group entities hold any interest in MSEDCL.
The 2,500 MW RTC renewable power capacity will be commissioned in three phases:
- Phase I (1,000 MW): Scheduled Commencement Date of Supply (SSD) – February 28, 2027
- Phase II (1,000 MW): Scheduled Commencement Date of Supply (SSD) – April 29, 2027
- Phase III (500 MW): Scheduled Commencement Date of Supply (SSD) – July 29, 2027
The project is expected to support Maharashtra’s transition towards a more resilient and sustainable energy system by ensuring long-term availability of renewable power while maintaining grid reliability.
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