MERC Gives Partial Nod to Hybrid Projects, Seeks GCC Framework for Multi-Location Connectivity

The Maharashtra Electricity Regulatory Commission (MERC) has partially approved UltraTech Cement’s request for relaxed grid connectivity rules for hybrid solar-wind power projects.

The order permits developers to apply for grid connectivity based on the higher capacity of either solar or wind, rather than the combined total capacity, but this relief is restricted to projects where both components are located at the same site. This ruling is expected to reduce infrastructure costs and accelerate hybrid renewable energy adoption among industries like UltraTech, which are pursuing captive clean energy solutions.

The case arose from UltraTech challenging the existing rule that mandates connectivity for the total combined capacity, meaning a 50 MW solar plus 40 MW wind project would require 90 MW grid connectivity. UltraTech argued that this approach is inefficient and costly, especially since solar and wind generation complement each other by peaking at different times of the day. The company pointed out that states like Gujarat and Rajasthan already allow connectivity based on the higher of the two capacities, in line with the National Renewable Energy Policy and Maharashtra’s own renewable energy goals.

MERC agreed with UltraTech’s core argument but limited its relief to co-located projects only. The Commission rejected the request to extend this benefit to hybrid setups where solar and wind components are at different geographical locations. It cited operational challenges, regulatory gaps, and grid stability concerns as key reasons for this decision. The order makes clear that while the current framework supports optimization for single-site hybrids, extending it to dispersed projects requires further analysis.

To address this, MERC directed the state’s Grid Coordination Committee (GCC) to conduct a detailed six-month study on the feasibility of grid connectivity norms for multi-location hybrid projects. The Commission said, " Grid Co-ordination Committee is directed to undertake a detailed study for exploring the implementation of Renewable Energy Hybrid Grid connectivity at multiple locations/ non-co-locations in the State. GCC shall submit the said draft framework to the Commission within six months of this Order, which may be considered by the Commission for initiating amendments to the existing Regulations or for notifying new Regulations, if required."

This study will examine technical, metering, scheduling, billing, and regulatory issues before any further decision is made. Meanwhile, MERC overruled objections from state utilities like MSETCL and MSEDCL, which had argued that such relief was beyond the Commission’s jurisdiction. MERC clarified that UltraTech’s petition was a legitimate request for clarification and procedural direction, not a demand for changing regulations.

The order is a clear win for industries and developers setting up co-located hybrid power plants in Maharashtra, offering a pathway to lower transmission costs and more efficient use of grid infrastructure. However, companies looking to build projects with wind and solar assets at different locations will have to wait until the GCC completes its study and the Commission issues further guidelines.