en.Wedoany.com Reported - The Maharashtra Electricity Regulatory Commission (MERC) has approved the tariff discovered through competitive bidding for the procurement of 2,269 MW of distributed solar power under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0. This approval paves the way for the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to sign long-term power purchase agreements (PPAs) with the winning bidders.

The approved tariff ranges from INR 2.24/kWh to INR 2.90/kWh, with projects distributed across 257 substations. MSEDCL had previously reported to the Commission a winning tariff range of INR 2.65/kWh to INR 2.90/kWh, with a weighted average tariff of INR 2.825/kWh; MERC, however, noted that bids of INR 2.24/kWh and INR 2.55/kWh also emerged in the tender results, ultimately adopting a broader tariff range.

MSEDCL sought MERC's approval for these tariffs under Section 63 of the Electricity Act, 2003, with the tender conducted by MSEB Solar Agro Power Ltd. (MSAPL), the implementing agency for MSKVY 2.0. Following the issuance of the Request for Selection (RfS) on August 9, 2025, the tender proceeded in two rounds, with prices determined through direct bidding and electronic reverse auction, culminating in a weighted average tariff of INR 2.825/kWh, excluding Central Financial Assistance (CFA) subsidies.

MERC noted that this procurement aligns with the state's goal of solarizing agricultural feeders, helping to replace relatively expensive conventional power with competitively priced solar electricity, while also supporting MSEDCL in meeting its increasing distributed renewable energy share under the Renewable Purchase Obligation (RPO) by fiscal year 2029-30.

The Commission also observed that the weighted average tariff of INR 2.825/kWh in this instance is lower than the INR 3.08/kWh approved in the previous MSKVY 2.0 procurement. The tariff decline is attributed to the exclusion of Domestic Content Requirement (DCR) modules and the removal of the CFA requirement in the tender, which reduced project costs while maintaining transparency and competitiveness in the process.

As per the approval, MSEDCL must sign power purchase agreements with the winning bidders within 30 days and submit copies of the agreements to the Commission for record. The solar power generated from these projects may be utilized to meet MSEDCL's distributed renewable energy RPO obligations.