The Maharashtra Electricity Regulatory Commission (MERC) has announced that it has approved a petition filed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the long-term procurement of 50 MW of biomass power for a period of 20 years through competitive bidding.
MSEDCL had petitioned MERC to endorse the competitive bidding process followed by an e-reverse auction for the procurement of 50 MW of biomass-based power and the same to be made entitled for meeting MSEDCL’s non-solar renewable purchase obligation (RPO) requirement.
MSEDCL had also requested the commission to endorse the bid document; request for selection (RfS) and the power purchase agreement (PPA).
Furthermore, MSEDCL had informed the MERC that it had been buying renewable energy certificates (RECs) instead of actual power to execute part of its RPO. Therefore, to accomplish the RPO compliance through sale and purchase of actual power and to meet the approved target, MSEDCL proposed to carry out competitive bidding for the procurement of 50 MW of biomass power on a long-term basis.
While examining the submissions made by MSEDCL, MERC observed that few of the documents deviated from the active provisions. MSEDCL had provided for 20-year PPA period in comparison to the 13-year period prescribed by MERC, set a tariff ceiling of Rs.5 ($0.07078)/kWh when the commission had provided for Rs.7.44 ($0.10532)/kWh.
MERC, in its order, approved all the proposals made by the MSEDCL and approved the deviations and stated that such procurement will count towards MSEDCL’s non-solar RPO.
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