MERC Approves MSEDCL's 2,269 MW Solar Power Procurement Under Maharashtra's MSKVY 2.0

The Maharashtra Electricity Regulatory Commission (MERC) has approved the adoption of tariffs discovered through a competitive bidding process for the long term procurement of 2,269 MW of distributed solar power under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0 scheme.

The order clears the way for Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) to execute power purchase agreements with successful bidders for feeder level solar projects aimed at supplying daytime electricity to agricultural consumers.

The Commission's order allows MSEDCL to procure solar power at tariffs ranging from INR  2.24 per kWh to INR 2.90 per kWh, with a weighted average tariff of Rs. 2.825 per kWh. MERC directed MSEDCL and the successful developers to sign power purchase agreements within 30 days and submit copies of the agreements to the Commission. The procured solar power will also qualify towards MSEDCL's Distributed Renewable Energy Renewable Purchase Obligation (RPO) compliance.

MSEDCL had approached the Commission seeking approval for tariff adoption after MSEB Solar Agro Power Ltd. (MSAPL), acting as the nodal agency under MSKVY 2.0, completed the competitive bidding process for 257 substations with a combined capacity of 2,269 MW. The procurement is intended to support the Government of Maharashtra's objective of solarising agricultural feeders and providing reliable daytime power to farmers while reducing overall power procurement costs.

According to the petition, the bidding process was conducted in two rounds after the request for selection was floated in August 2025. The process attracted bids from dozens of developers across multiple substations, with tariffs discovered through transparent competitive bidding and e reverse auctions where required. The ceiling tariff for the tender had been fixed at INR 2.90 per kWh, and the procurement was delinked from the PM KUSUM Component C Central Financial Assistance.

MERC observed that the procurement aligns with its earlier approval granted to MSEDCL for initiating the bidding process and supports both feeder solarisation and compliance with the state's increasing Distributed Renewable Energy obligation. The Commission noted that the tariff discovered under the latest bidding process is lower than the weighted average tariff approved in an earlier MSKVY 2.0 procurement, attributing the reduction to the absence of Central Financial Assistance and Domestic Content Requirement conditions in the present tender.

The Commission concluded that the competitive bidding process was transparent and market reflective, with sufficient participation across multiple substations and developers. It therefore approved the discovered tariffs for long term procurement of 2,269 MW of distributed solar power under the MSKVY 2.0 scheme, supporting Maharashtra's renewable energy targets and agricultural power reforms.