In a major boost to Maharashtra’s clean energy transition and grid reliability, the Maharashtra Electricity Regulatory Commission (MERC) has granted regulatory approval to Tata Power Company Limited – Distribution (TPC-D) for the procurement of 250 MW of Firm and Dispatchable Renewable Energy (FDRE) backed by energy storage systems. The approval, issued through an order dated January 1, 2026, allows Tata Power to secure long-term renewable power for a period of 25 years.
The Commission clarified that power procured from these projects will qualify towards Tata Power’s Renewable Purchase Obligation (RPO), strengthening the utility’s long-term power supply strategy while supporting compliance with renewable energy mandates.
The approval follows MERC’s guidance issued in March 2025, which highlighted the role of firm and schedulable renewable energy in aligning generation with load requirements and optimizing overall power procurement costs. Acting on this directive, Tata Power floated a competitive tender in April 2025 to procure 250 MW of FDRE capacity. The tender attracted bids totaling 560 MW from six developers, with five qualifying for the financial bidding stage.
The selection process included technical evaluation and a competitive electronic reverse auction conducted in August 2025. Following the bidding process, four developers were awarded capacity: Juniper Green Energy Limited received 70 MW, Navayuga Engineering Company Limited and ACME Solar Holdings Limited were each allotted 50 MW, while Tata Power Renewable Energy Limited secured the largest share of 80 MW.
The tariffs discovered through the bidding ranged narrowly between ₹4.43/kWh and ₹4.77/kWh. MERC observed that these tariffs were competitive and aligned with prevailing market rates for FDRE projects across India, which typically range between ₹4.25/kWh and ₹4.98/kWh. The Commission further noted that the discovered tariffs are lower than Tata Power’s approved long-term power purchase costs, indicating potential savings for consumers.
During the evaluation process, the Ministry of New and Renewable Energy (MNRE) issued revised guidelines mandating the use of modules listed under the Approved List of Models and Manufacturers (ALMM). Tata Power subsequently requested bidders to revise their price offers in line with the updated policy, resulting in lower final tariffs.
A project location-related issue arose when Navayuga Engineering sought to shift its project from an interstate transmission system (ISTS) to an intrastate transmission system (InSTS) location in Maharashtra. While Tata Power declined any upward tariff revision, MERC directed the parties to resolve the issue strictly in accordance with the bidding guidelines.
MERC emphasized the transparent and competitive nature of the procurement process and directed Tata Power to execute power purchase agreements with the selected developers within 30 days. The approved projects are expected to enhance grid stability, ensure firm renewable power availability, and support Maharashtra’s clean energy and energy storage ambitions.
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